The Slight Edge: Turning Simple Disciplines into Massive Success and Happiness

by Jeff Olson

It’s no accident that our exploration of the slight edge began with the story of a penny doubled. The world of finance is one of the easiest places to see, objectively and logically, the power of the slight edge in action. As I said earlier, everyone thinks they know about the power of compound interest—but most don’t, not really. In fact, only about 5 percent really understand this power: the ones on the success curve side of the slight edge. Here’s another pithy bit of Vince Lombardi wisdom, and this one applies perfectly to personal finance: Winning is a habit. Unfortunately, so is losing. If you have developed losing habits in your finances, it’s time to replace them with winning habits. Resolve to stop following that Parkinson’s Law lament: Whatever I have, I spend. Choose not to be part of the 95 percent. Treat your personal finances like the precious resource it is. Emulate the masters of slight edge economics described in The Millionaire Next Door. Be like my mom: live below your means. Set up a modest savings plan and stick to it. You probably have some concrete thoughts about this area already. Maybe you’ve been working this part out in the back of your mind ever since you read the story of the wealthy man and his two sons. Now’s the time to start putting some of your thoughts to paper, and sketch out an initial plan for realizing your financial dreams and goals.