The Untold Other Side of Compound Effects

I was left asking myself why some of the not-so-good parts of my life seemed to concentrate around the same time. It's easy to see how, when you think about it: a bad decision leads to a mistake, that costs extra time, you lose some sleep, become burnout and then suddenly you've had a health scare or lost your job. You reflect and think ‘how on earth did that happen', it appears to off spiralled out of nowhere. However, what started as a harmless minor bad decision then compounded into something much much worse. This is the long-lost and forgotten side to compounding: A few small problems can compound into a massive one.

Self-Development Loves Compounding Effects

The benefits of compounding interest that has been applied to the self-development world, particularly ideas around habits and improving by 1% each day, have become very popular in recent years. I think there is immense untapped power in compounding - and have been following all the tips get the compounding effect in my own life.

Fifteen minutes of research into a topic results in you becoming an expert over time. Reading one chapter a day compounds into a wide range of knowledge, better comprehension and writing and improved focus.

Small, incremental gains really do lead to gigantic results over time.

The Other Side of Compound Interest

However, what if you flipped this graph upside down. A few seemingly minor errors would compound into a full-blown catastrophe. This seems to of been lost in current advice. No one has highlighted the other, negative side. Or provided the solution. Until now.

These minor errors may even be too small to notice to start, the same with all the positive benefits. There is a period of time where you are taking action but the results are yet to show. But this can mean this other side can creep up. One bad night’s sleep. A missed meeting. These on the surface appear insignificant. But you just don't know what could happen downstream of these events.

Imagine brushing your teeth slightly incorrectly every day for 50 years. There would be an effect. But it may take months to see it.

Reinforcing Cycles

We can end up in reinforcing cycles - that can be hugely beneficial but can also be destructive. The expression vicious cycle, for example, suggests rapidly building momentum in a negative direction. This reinforcing feedback processes, in which a change builds on itself over time.

This can easily happen in our own lives. If we aren’t self-aware enough to notice this can be disastrous. If we ignore advice from others, don’t seek to change our mind, we can be left making incorrect decisions for years - so minor they appear to not have an impact.

The Unexpected Solution

When thinking about compounding we solely focus on making small changes in the right direction. But this is not the answer for this dark other side. The answer - is a complete reset. Trying to work upwards from a bad place is not going to end up well. Instead, resetting and starting from base level, zero, is the better option.

Maybe that's a holiday, a digital detox, or simply re-calibrating your life with the right amount of sleep and exercise.

As James Clear says "Your problems adjust to their true level of importance after a hard workout and a good nights sleep." Suddenly once you have reset, your mind clears and you can head off in the positive direction once again. But not taking the time to reset may lead to further poor choices that continue to spiral downward.

Don’t Wait to Take Action

You may just keep hanging on. Resist making a change. Avoid taking some time off. But prolonging any action in the hope of a magic quote that will spur you into change or desiring a light bulb moment is the worst mistake you can make. Simply waiting for something will just exaggerate the downward trajectory.

Take the hit. Reset and then go again.

Another important idea is to go and do something crazy to create a jolt of motion. Break out of your routine. Change the pattern you’ve been accustomed to. Go for a really hard run, jump in a lake, go somewhere you’ve never been and do something you’ve never done. Think things you’ve never thought. Start mixing up your life to get out of those reinforcing cycles and it will propel you back to base level once again.

To avoid negative compounding look to reset. Then focus again on the positive effects of compounding.