When most people think of compound interest, they picture their savings growing exponentially in a bank account. It’s a simple concept: the interest you earn starts earning interest of its own, creating a snowball effect over time. But what if we applied the same principle to our habits?
The truth is, just like compound interest can turn a small initial deposit into a fortune, small daily habits can lead to massive transformations in our lives.
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When building a new process—whether at work or in personal development—it’s crucial to ask: Is the system simple, sticky, and self-regulating? These three criteria act as a litmus test for creating systems that work and endure over time.
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Habits are the engine behind nearly everything we do. Psychologists estimate that up to 95% of our actions are habitual—automatic routines that free up mental energy for other tasks. But beyond saving time in the moment, habits have another superpower: they leverage time itself to create remarkable transformations.
The power of habits lies in their consistency. A single small action, repeated daily, compounds over weeks, months, and years. Flossing your teeth for two minutes each night doesn’t seem monumental today, but over time, it prevents costly dental issues. Similarly, setting aside just $10 a week can grow into a significant amount when time does its work.
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All animals, including humans, rely on habit to navigate their daily lives. Our brains are wired to help us flow through repetitive activities without constant conscious direction. This reliance on habit isn’t just a convenience; it’s a survival mechanism.
Think about brushing your teeth or driving your car. These actions are powered more by habitual movements than conscious thought. When the traffic light turns green, we naturally lift our foot off the brake and apply it to the gas pedal. Similarly, when the light turns yellow and then red, we instinctively slow the vehicle to a stop. These are not accidental behaviors or strange phenomena—they’re habits deeply embedded in our brains.
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Big goals can feel overwhelming. Whether you want to lose weight, write a book, or build a business, it’s easy to get stuck thinking about how far you have to go. That sense of overwhelm often paralyzes us, keeping us from taking any action at all.
But here’s the secret: you don’t have to tackle the entire mountain all at once. Change happens one small step at a time. And when you use systems thinking, those small steps become the foundation for big, meaningful results.
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It’s tempting to aim for perfection in everything we do. We want the perfect job, the perfect fitness routine, the perfect life. But this obsession with perfection often stops us from making any real progress. We get stuck planning, tweaking, and hesitating, waiting for the “perfect moment” to take action.
The truth is, perfection is a myth. Life isn’t a straight line, and success isn’t about flawlessly executing a master plan. It’s about consistent progress—small, steady steps that move you closer to your goals. And the best way to make progress is to create systems that work for you.
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Life often feels like a never-ending to-do list. There’s always another milestone to hit, another goal to chase, another hurdle to overcome. Many of us believe that if we can just check off that next box—whether it’s a promotion, a financial target, or some other marker of success—we’ll finally feel at peace.
But here’s the truth: chasing “someday” rarely leads to satisfaction. That’s because fulfillment isn’t something you stumble upon in the future. It’s something you create, here and now, with the systems you build into your daily life.
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Sheryl Sandberg’s quote, “Done is better than perfect,” carries a powerful truth for anyone striving to improve. Too often, we fall into the trap of perfectionism—endlessly tweaking, polishing, and revising in pursuit of an ideal that doesn’t exist. While it’s good to aim high, perfectionism can often become a roadblock, preventing us from taking action and making real progress.
Winston Churchill expressed a similar idea when he said, “Perfection is the enemy of progress.” These words remind us that the pursuit of perfection can stifle growth, keep us stuck in analysis paralysis, and hold us back from achieving meaningful results.
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When it comes to self-improvement, many people focus solely on motivation or willpower. While those can be helpful in the short term, they often fade over time, leaving us frustrated and feeling like we've failed. Instead, there's a more sustainable approach to creating effective habits: using systems.
A system is simply a set of processes designed to achieve a desired result. When it comes to habit-building, systems allow you to focus on consistent actions rather than unpredictable bursts of effort. By designing systems that support your goals, you take the pressure off your willpower and create an environment where good habits can thrive.
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When it comes to personal improvement, many people rely on sheer willpower and motivation to achieve their goals. While these strategies might work in the short term, they often lead to burnout and frustration when the excitement fades or life throws a curveball. But there is a more sustainable and effective approach: building habits through systems thinking.
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One of the more popular pages on my website covers the idea that everything is a system. I find that people often stumble on this concept at some point. It might be that a systems thinker tipped them off. Or, more commonly, it is that the individual put the pieces together to come to this realization.
It usually starts as an idea when they start to see patterns emerge and then the underlying structures that determine those patterns. As they pull themselves out of the weeds to see a high-level view of existence, they realize that everything is a system.
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When embarking on a journey to change the systems and habits in our lives, one key element stands out: consistency. It's not enough to make a change once and hope for immediate results; we must commit to ongoing effort.
The systems and habits approach to improvement focuses on gradually altering our recurring thoughts and actions over time, rather than expecting sudden transformation. This means that the amount of effort and motivation needed is often less than we initially assume. Instead of relying solely on willpower to achieve something quickly, the key is to consistently take the right steps over an extended period.
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During my high school years, I worked at a retail shoe store where I assisted customers in finding their next pair of shoes. Like many jobs, we were given monthly sales goals based on historical performance. These goals were reviewed regularly to ensure everyone understood what was expected of them.
However, I noticed a pattern. The goals seemed to be a recurring theme, with slight variations each month. Despite our best efforts, we found ourselves struggling to meet these targets, leading to a rollercoaster of emotions—celebration when we hit our goals, and blame when we fell short.
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Yesterday my daughter was watching a video on Cinderella. It was the classic story, but they added some twists to make it a bit more modern. But the theme was the same.
As I overhead the narrative, I found myself thinking, “I wonder if the stepsisters know they are jerks?”
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We all require hope to progress. Hope fuels our belief that things can improve, instills optimism for the future, and transforms struggles into manageable challenges.
I've experienced both sides of this spectrum. In moments of hopelessness, I've felt lethargic, attributing my disappointments to external factors. Conversely, during hopeful times, I've mustered the strength to overcome adversity, refusing to be deterred by setbacks.
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Consistency is key when it comes to changing the systems and habits in our lives. Merely doing something once or twice won't yield the desired results. The systems and habits approach to improvement focuses on gradually altering our recurring thoughts and actions over time, rather than expecting sudden transformation overnight.
In this approach, the emphasis is less on effort and motivation than many believe. Rather than relying on willpower to accomplish something once or twice, the real challenge is in consistently taking the right steps over an extended period.
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As we journey through life, we often encounter inexplicable events. We may be left wondering why we didn’t get that promotion or why our relationship soured. In moments of confusion, it's tempting to attribute these occurrences to fate or luck, or to rationalize them as karmic retribution for past deeds.
A striking example of this mindset came from a collegiate athlete who attributed his team's late-season struggles to fate. However, after the season ended, it was revealed that some players were engaging in substance abuse before games, unaware of how it affected their performance. Despite this revelation, the players continued to deny responsibility, clinging to the belief that their past successes absolved them of any current failures.
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When embarking on a new process at work or in personal development, ensuring simplicity, stickiness, and self-regulation is key to success. These three factors serve as a litmus test for the strength of a system and can highlight potential issues early on.
A system should not be unnecessarily complicated. While life itself is complex, a system should aim to simplify tasks to enhance its chances of success. Starting with a basic structure allows for gradual development and addition of detail over time.
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The environment we live in plays a significant role in shaping who we are. This is a common theme in self-improvement literature, emphasizing how our surroundings influence our thoughts and behaviors. Whether overtly or subtly, the people and culture around us impact us deeply.
This concept is not new; parents have long understood the importance of their children's social circles. They know that their kids' friends can have a powerful influence, just as their kids can influence their friends. Despite this, many of us fail to actively assess our own social environments. How often do we consider who we spend our time with? Do we intentionally surround ourselves with positive influences?
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Most people dismiss small improvements. Unless it results in an immediate and massive win, they dismiss the small efforts put forth.
But this leaves you vulnerable for stagnation and complacency. You don’t want to put in the effort unless you are guaranteed massive payouts.
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