What is the Law of Delayed Returns?
An interesting question indeed. Before we get into it, we need to first understand what the Law of Delayed Returns is. This is a financial concept, to begin with. Since I am not that adept in Finance related stuff, I can explain this in layman terms. This law states that whatever you invest, how much ever small it may be, if done consistently, will lead to massive returns over a period of time. In other words, the ‘returns’ is delayed.
How Can We Relate the Law of Delayed Returns to Our Lives?
Now, the same concept can be applied to our lives. Imagine you want to take up a habit and your aim is to achieve your ultimate goal by it. As per basic human nature, we humans don’t encourage change that easily. There is innate natural friction that opposes change. But, understanding and accepting this law of delayed returns can help in overcoming this friction.
So, in order to make the habit a part of our system, all we need to do is practice it regularly. Simple enough on paper, but why would we do that? What would motivate us?
In accordance with the law of delayed returns, when we re-iterate the habit and achieve consistency, then the consequence or the result of that habit will accumulate and be huge over a period of time. Even though there is a delay in the returns, it would definitely be worth the effort, time, and energy invested into maintaining the consistency of the habit.
[Related Read: How to Develop a Habit Through ‘Habit Stacking’?]
Where Could We Apply this Law of Delayed Returns in Life?
Over the top of my head, I can provide 3 areas, apart from financial investment, where we could apply this law: Exercise, Relationships, Learning.
Exercise
Yes. This law when understood and applied in physical exercise could reap huge benefits over a period of time. This is one of the reasons why physical trainers ask us to be consistent with the process. An exercise routine, when attained consistency, will result in us achieving our physical health goal for sure, in due course of time.
Relationships
It is difficult to ignite a friendship or love with a person overnight. It is a slow process. But, once you feel that you have a connection with a person, to begin with, then investing time with that person on regular basis will lead to a strong relationship over a period of time.
Learning
When you want to learn something new, let’s say Spanish for example, then practicing the language and studying it regularly over a period of time will ensure you master the language. Yes, the result would be delayed, but you could surpass what you aim for if you maintain consistency.
By now we understand that the golden key to the law of delayed returns to take effect in life is ‘Consistency‘. So, when you want something in life, take action towards achieving it and be consistent. You will get the results for sure over a period of time, though delayed.
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