Compound effect in Islamic perspective.

The compound effect, often called the 8th wonder of the world, is discussed, documented, explained, and written about in many forms and languages in today's world. This compound effect is not just limited to finance and share markets; it's used, practiced, and applied across many industries, job profiles, and aspects of one's own personal life.

Understanding the compound effect

As explained by Darren Hardy in his book, The Compound Effect is the strategy of reaping huge rewards from small, seemingly insignificant actions. (Source: The Compound effect by Darren Hardy)

It is basically taking tiny, insignificant-looking consistent steps towards one’s perceived success, which over time compounds into unimaginable and massive rewards.

A man can build a fortune or achieve all his financial goals by just investing a small percentage of his income regularly over time. Alternatively, a man can improve his health, finances, relationships, and overall aspects of his personal and professional life by just reading a self-improvement book for 10 minutes every day and applying the knowledge he learns from it in his life. These are just a few examples of the countless wonders one can achieve through the power of the compound effect.

The Compound Effect is not always our friend.

The compound effect can also work against us if one indulges regularly in unhealthy habits or makes poor choices on a regular basis, underestimating them as insignificant or too tiny to affect him or any aspect of his life. This, in the long run, can result in suffering from huge losses or massive setbacks.

For example, a man can ruin his health and suffer from a terminal illness by just neglecting his health on a very minor scale, like eating a few bad calories daily over a period of time. As ridiculous as it sounds, that’s the power of the compound effect.

Compound effect in Islam

The compound effect, about which the world is going crazy and calling it the 8th wonder of the world, Prophet Mohammad (peace be upon him) explained to his people 1400 years ago, although he didn’t term it as a compound effect. He explained to his people the concept of compound effect and the effect it can have over their lives in this world and in the hereafter in terms of good deeds and bad deeds.

For example, in a hadith Prophet Muhammad (peace be upon him) said,

“Beware of minor sins. Verily, they pile upon a man until he is ruined”(Musnad Aḥmad 3808).

The piling up of minor sins when a person is ignorant of them, thinking them as insignificant and repeatedly indulging in them without giving much thought about them can result in him ending up having the minor sins compounded and piled up upon himself on the day of judgment and, as a result, ruining his hereafter.

Same goes for the good deeds, in another hadith Prophet Muhammad (peace be upon him) said,

“The most beloved of deeds to Allah are those that are most consistent, even if it is small .”(Bukhari).

When a person performs small good deeds regularly and in a consistent manner, it compounds up for him, but this time the compound effect is working for him, and when it piles up, it helps him reap huge rewards on the day of judgment.

Conclusion

The compound effect is one of nature's most powerful forces, and we should try to utilize it and make sure it's working for us and not against us. Therefore, we should not think of any habit or action as insignificant and ignore it just because of how small or tiny it is. Because these tiny actions, when done in a repeated and consistent manner, can turn the wheel of the compound effect in our life, and it can either build us or destroy us.