Atomic Habits by James Clear

Atomic Habits is a small-changes-compound book. Author James Clear argues you don’t need massive overhauls to what you do; instead, you need systems that make the right action the easy action. This book is less a self-help pep talk, and more of an operating system for behaviour. It is worth stating that if you are looking for a book big on motivation, then this isn’t for you. Instead, it’s a playbook on tools and structures.

Some of the key concepts explored throughout the book include

• For a habit to become effective, you need to make it obvious, attractive, easy, and satisfying.
• An environment is more critical than an intention, hence setting up the proper environment is crucial. Environment beats intention; therefore, reduce the friction that can get in the way of forming a habit.
• ‘Stacking’ habits on habits and reducing friction are a powerful combination.

A lot of this book goes into concepts which would resonate with long-term investors, namely delayed gratification and compounding. Goals take time to achieve, and the journey to reach them is enjoying a future gratifying state. Add to this that tiny gains compound, just as tiny losses do. The forming of habits follows the same laws of compounding as does investing.  

What's the bottom line?

“You do not rise to the level of your goals. You fall to the level of your systems.”

‍Link to Book

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