3495% improvement after one year - Atomic Habit Book Summary

3495% improvement after one year - Atomic Habit Book Summary

As you look ahead to the new year, it's a good idea to ask yourself what habits can help you achieve your goals in 2023. Whether you want to improve your health, increase your wealth, or pursue a new hobby, developing new habits can be a key factor in helping you achieve your goals. Consider identifying the specific habits that will be most impactful in helping you achieve your goals and make a plan for how you will incorporate these habits into your daily routine. By focusing on building good habits and breaking bad ones, you can make progress toward your goals in a sustainable and consistent way. Remember, small improvements in your habits can compound over time and lead to significant progress, so don't be afraid to start small and focus on building momentum. So, it is always a good idea to review your habits and consider which ones need to be changed to help you achieve your goals.


"Atomic Habits" by James Clear is a book that focuses on the power of small, incremental changes to help individuals improve their habits and achieve their goals. One of the key concepts in the book is the idea that small improvements in your habits can compound over time and lead to significant progress.


For example, if you were to improve your personal finances by just 1% each day, that small improvement would compound over time and lead to a 3495% improvement after one year. Here's the math: 1.01^365 = 3495.01, or about a 3495% improvement.


Of course, this is just an example and the actual improvement you see in your finances will depend on the specific habits you improve and your starting point. However, the point is that small, incremental improvements can add up and lead to significant progress over time.


In "Atomic Habits," James Clear suggests using a four-step process to build good habits and break bad ones:


  • Make it obvious: Make it easy to see and remember the habits you want to build. This can be done by using visual cues, such as placing a sticky note on your bathroom mirror to remind you to brush your teeth or setting a reminder on your phone to go for a daily walk.

  • Make it attractive: Make the habits you want to build more appealing by finding ways to make them enjoyable or rewarding. For example, you could listen to your favorite music while exercising, or reward yourself with a small treat after completing a task.

  • Make it easy: Make the habits you want to build as easy as possible to start and sustain. This can be done by simplifying the process, such as by laying out your workout clothes the night before so you don't have to think about it in the morning, or by automating certain tasks, such as setting up automatic savings deposits.

  • Make it satisfying: Find ways to make the habits you want to build more satisfying so that you are more likely to continue doing them. This could involve celebrating small wins, finding enjoyment in the process, or setting up a rewards system for yourself.


By following these four steps, you can improve your habits and work towards your financial goals in a sustainable and consistent way.


Here are the top 10 takeaways from "Atomic Habits" by James Clear:


  1. Small changes can lead to significant progress: The book emphasizes the power of small, incremental changes to improve your habits and achieve your goals.

  2. Habits are the compound interest of self-improvement: Just like compound interest grows exponentially over time, small improvements in your habits can compound and lead to significant progress.

  3. Focus on systems, not goals: The book suggests that focusing on systems, or the processes that lead to your goals, is more effective than focusing on the goals themselves.

  4. Make it easy to start: Make it as easy as possible to start a new habit by making it obvious, attractive, and easy.

  5. Create a "tiny" habit: Start with a small, easy habit and gradually build from there.

  6. Use accountability to your advantage: Find ways to make yourself accountable for your habits, such as sharing your goals with others or setting up a reward system.

  7. Monitor your progress: Track your progress and use it as motivation to continue improving your habits.

  8. Make it satisfying: Find ways to make your habits more satisfying, such as by celebrating small wins or finding enjoyment in the process.

  9. Use habits to change your identity: The book suggests that by changing your habits, you can change your identity and become the person you want to be.

  10. Habits are powerful, but they can also be fragile: It takes time and effort to build good habits, but they can also be easily broken if you are not careful. Be mindful of this and be consistent in your efforts to maintain your habits.

 

Deepak Sharma

Deepak Sharma

Insurance Advisor / WealthGuard


  • My goal is simple, protect what is important to you. I focus my energy on discovering your exposure to risk and building a comprehensive plan to protect you against those risk.