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In this article I want to share what I learnt so far about the power of habits from sources like The Infinite Game, Atomic Habits and Leaders Eat Last.

Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn’t, pays it. - Albert Einstein

While this Einstein quote is well-known for its association with making money, its applicability extends beyond financial gains to all forms of improvement. Even a modest 1% improvement, when consistently applied, can lead to remarkable transformations over time.

This is why habits are so powerful.

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Photo by Katarina Wright on Unsplash

Why habits are interconnected with your identity

Let’s start with why: Why do we want to build good habits? It is because we want to become better. It is because we want to achive our goals.

But watch out: habits should be identity-based and not outcome-based.

  • Outcome-based habits: These are habits where one only thinks about the end goal (for example, running a marathon → habit = I need to regularly go for a run).
  • Identity-based habits: In contrast, identity-based habits involve adopting a specific identity (I am a runner. → I regularly go for runs).

Don’t get me wrong. Certainly, setting goals is crucial as they provide us with a sense of direction. However, the drawback of outcome-based habits lies in their definitive conclusion: once the goal is attained, the motivation to continue the habit diminishes. On the contrary, identity-based habits are infinite-minded, driven by the fact that they are not pursued for a specific goal but rather woven into one’s identity. (cf. The Infinite Game)

How to build good habits or break bad ones

According to James Clear, habits form when four conditions are present:

  1. Cue: At the beginning there is a trigger. This can be a certain situation, a smell or visual.
  2. Craving: A cue usually triggers a craving.
  3. Response: To quench that craving, we act upon it with a specific response.
  4. Reward: The reward for executing a habit is the gratification or positive outcome that reinforces the behavior and increases the likelihood of its repetition.

All four components are crucial for the formation of habits.

Consider the example of the detrimental habit of smoking: a smoker encounters numerous cues, such as leaving a building or completing a task, many of which have become ingrained through repetition. Through the consistent repetition of this behavior and the reward of a nicotine rush, a craving develops. Whenever the smoker encounters a cue, the craving arises, and to obtain the reward, they respond by smoking a cigarette.

Cravings for bad habits typically develop swiftly, presenting a challenge in contrast to the slower formation of cravings for good habits.

However, armed with the understanding of these four components, one can intentionally modify their behavior to cultivate positive habits, and conversely, employ these strategies inversely to break free from undesirable habits.

Actionable strategies for establishing habits

Change your environment

This can benefit two of James Clear’s Laws: it makes cues for habits more obvious (e.g. put your running shoes somewhere visible) and can make starting them easier (most of what you need to start is already prepared).

Prepare for the next time

After completing a habit, tidy up and establish the conditions for the next time (e.g. preparing the workout cloths). This minimizes the hurdle for getting started the next time.

Habit Stacking

An exceptionally effective technique for getting started is Habit Stacking. Initiating a new habit can be most challenging during the first attempts. Before something becomes habitualized, overcoming the inertia of getting started requires a lot of energy.

Habit Stacking involves leveraging an established habit as a cue for the new habit you want to cultivate. For instance, you could pair the habit of daily stretching with your existing routine of morning coffee.

Avoid perfectionism

The perfect is the enemy of the good. - Voltaire

When I think of perfectionism, I think of the following story I’ve read somewhere: A professor divided his class into two groups: one graded on quantity, needing to submit 100 pictures for an A, and the other on quality, requiring just one excellent picture. Surprisingly, the quantity-focused group produced better-quality pictures. The quantity group tried out different things, experimented and learnt a lot. The other group was stuck with theorizing about how to take the perfect picture.

The key lesson is that “Learning by Doing” triumphs over passive, theoretical learning.

How do you apply this to habit-building? Take the leap and don’t overanalyze. It’s more beneficial to engage in something briefly, like a quick 5-minute workout, than to do nothing at all.

2-Minute-Rule

Motivation comes from doing something. It does not strike like lightning

The 2-Minute Rule suggests starting with just two minutes of an activity. It is easier to commit to doing something for just 2 minutes than to e.g. read the whole chapter of a book. Once you started most of the time you will be motivated to continue beyond the 2 minutes.

If feeling deceived by this, you could set up an additional rule: you must stop after 2 minutes. Once initiation becomes a habit, the natural inclination is to continue.

Never miss twice in a row

Missing a habit once is okay. Nobody is perfect. However, it’s important that skipping does not become a habit - so one should never miss a habit more than twice.

Work together

Another factor that enhances the appeal of an activity is the influence of family and friends. We tend to adapt our behavior to those around us, making it much easier to establish positive habits or break negative ones within a group setting.

Also an “accountability contract” can be very helpful. Failing to adhere to habits becomes unappealing, as one has to justify themselves to others.

Being challenged in the right way

Our brain craves challenge, but only when it’s not too overwhelming. Playing tennis against a 4-year-old quickly becomes boring as we are under-challenged. On the other hand, playing against a professional becomes overwhelming. However, when facing an evenly matched opponent, we are motivated - we can win but need to exert effort. The principle behind this is the “Goldilocks Rule,” where studies confirm optimal learning occurs when we are about 4% “overwhelmed.”

Conclusion: The Secret to Results That Last

Consistently applying a modest 1% improvement can result in remarkable transformations over time. Notably, improving by 1% each day leads to a staggering 37-fold enhancement in one year.

This is how powerful habits can be!

If you find the topic interesting, I can highly recommend the book Atomic Habits by James Clear. It already has become a modern classic and a must read non-fiction book for productivity enthusiasts. But also Simon Sinek’s books The Infinite Game and Leaders Eat Last contain valuable insights in why and how to build habits.


Thank you for reading, I hope you’ve enjoyed my article!