*Just like compound interest multiples one’s savings, improving one’s mind daily, during the best hour of the day, multiplies one’s mental compounding interest. 
This ‘mental’ compounding interest advice comes from investor Charlie Munger, in his book University of Berkshire Hathaway.

The Munger Technique

Time Management

<ul>
<li>The morning hours are usually the best hours of your day, and what you do at that time has the power to change your life.</li>
<li>Keep yourself away from distractions and just focus on your morning goals, like meditating, reading, writing or exercising.</li>
<li>Checking e-mail, watching the news, or consuming useless (junk) content is the worst thing you can do in the morning.</li>
</ul>

Investing In the Best Hours Of Your Day

Taking a cue from Bruce Lee’s famous quote ‘Be Water’, we must adopt a water mindset and adapt to our body and physiology: our best hour of the day could be any hour of the day, as long as it is according to you. Give yourself the best hour of the day.
All of us cannot wake up and join the 5 AM Club as our bodies are different and each morning isn’t the same.

The “Water Mindset”

<img width="665" height="435" src="https://i0.wp.com/dariusforoux.com/wp-content/uploads/2020/07/munger-technique.png?resize=665%2C435&amp;ssl=1" alt="" srcset="https://i0.wp.com/dariusforoux.com/wp-content/uploads/2020/07/munger-technique.png?resize=665%2C435&amp;ssl=1 665w, https://i0.wp.com/dariusforoux.com/wp-content/uploads/2020/07/munger-technique.png?zoom=2&amp;resize=665%2C435&amp;ssl=1 1330w, https://i0.wp.com/dariusforoux.com/wp-content/uploads/2020/07/munger-technique.png?zoom=3&amp;resize=665%2C435&amp;ssl=1 1995w"><div> 4 min read</div>We’ve all heard about the magic of compounding interest. Something equally powerful is&nbsp;mental&nbsp;compounding interest. Here’s some advice from the investor Charlie Munger that I read in the book, <a href="https://www.amazon.com/gp/product/0998406260/ref=as_li_qf_asin_il_tl?ie=UTF8&amp;tag=dariusforoux-20&amp;creative=9325&amp;linkCode=as2&amp;creativeASIN=0998406260&amp;linkId=acc0ff87c87e04d39af6ae3ba958a954" aria-label="undefined (opens in a new tab)" rel="noreferrer noopener" data-amzn-asin="0998406260" dir="ltr">University of Berkshire Hathaway</a>:<BLOCKQUOTE>“He (Munger) got the idea to add a mental compound interest as well. So he decided he would sell himself the best hour of the day to improving his own mind, and the world could buy the rest of his time. He said it may sound selfish, but it worked. He also noted that if you become very reliable and stay that way, it will be very hard to fail in doing anything you want.”</BLOCKQUOTE>I’ve been calling this idea the Munger Technique since I learned about this. But when I mention this to my students, team, or friends, the majority assumes that Munger is talking about a morning ritual.That’s a wrong assumption. Munger said that he sold himself the best hour of the day. He used that hour to improve his mind.&nbsp;<h2>When do you improve your mind?</h2>Let’s think about that for a minute. Again, this has nothing to do with morning routines. For the past several years, people in personal development have been giving a lot of attention to morning routines.I’m personally not a morning person, nor do I have a strict routine. Sure, I avoid checking my email, watching the news, or consuming useless content, but I don’t have a set routine in the morning before I start working. I know that some people like that structure. For example:<UL><LI>Wake up at 7 AM</LI><LI>Drink water</LI><LI>Meditate</LI><LI>Journal</LI><LI>Read</LI><LI>Go</LI></UL>And it&nbsp;must&nbsp;be in that order. That’s not me. <a href="https://dariusforoux.com/working-from-home-tips/" aria-label="undefined (opens in a new tab)" rel="noreferrer noopener" dir="ltr">I immediately start working</a>. As long as I can tune out all the distractions of the world, I consider it a good morning.&nbsp;But when I read this advice from Munger, I asked myself two questions:&nbsp;<OL><LI>When do I improve my mind?</LI><LI>How do I improve my mind?</LI></OL>For me, improving my mind means improving my key skills: Writing, persuasion, decision making. I read books, make notes, and try to connect the dots between everything I learn. When I try to improve my mind, I only want to learn. The doing comes later. That’s&nbsp;how&nbsp;I do it.&nbsp;But&nbsp;when&nbsp;do I work on improving my mind? Until now, I believed that I should do that in the morning. After all, that’s our best time, right? Well, not always.<h2>What’s your best hour of the day?</h2>One of my key beliefs is that <a aria-label="undefined (opens in a new tab)" href="https://dariusforoux.com/cyclical-nature-of-life/" rel="noreferrer noopener" dir="ltr">life is cyclical</a>. I learned this from studying successful investors like Howard Marks.They often stress that on a day to day basis, stocks go up and down a lot. But if you look at the stock market over ten, twenty, or thirty years, you see a steady upward trend.Something similar happens to our days. One day you might feel good, another day, you might feel tired. It’s just like the stock market. And that’s why I’m not a fan of morning rituals. It’s simply unrealistic to expect you to feel the same way every single day of your life.I understand the argument for morning routines. The idea is that a good morning ritual will make your day better. But in my experience, that’s not the case.<a aria-label="undefined (opens in a new tab)" href="https://dariusforoux.com/manage-personal-energy/" rel="noreferrer noopener" dir="ltr">Sometimes you simply wake up with less energy</a>. Sometimes you have an emergency. If you have kids, your mornings are dedicated to them. In those cases, you can meditate all you want, you’ll still be tired or have to deal with that emergency.You can think of many reasons morning routines don’t work. But the Munger Technique always works. Let me explain why.<h2>Adopt a “Water Mindset”</h2>If we adopt the mindset of an investor, and realize that our days might be up and down, how can we still be reliable over the long-term?&nbsp;We can do that by adopting what I call a “Water Mindset.” I named this after Bruce Lee, <a href="https://www.amazon.com/gp/product/0804834717/ref=as_li_qf_asin_il_tl?ie=UTF8&amp;tag=dariusforoux-20&amp;creative=9325&amp;linkCode=as2&amp;creativeASIN=0804834717&amp;linkId=1f79800f5e3ad98c5b500ba9f54edb7e" aria-label="undefined (opens in a new tab)" rel="noreferrer noopener" data-amzn-asin="0804834717" dir="ltr">who believed that we must be like water</a>. Water always adopts the shape of its surroundings.&nbsp;And the Munger Technique will help you to become like water. Give yourself&nbsp;the best hour&nbsp;of the day. And your best hour might be in the morning one day, and it might be after dinner the next. But it must be your best hour (not what some blogger says).This technique has massively shifted the way I learn. I no longer get frustrated if I can’t learn in the morning, I simply realize it’s not my best hour. When it comes to improving your mind, you want to be in a relaxed, more flow-like state. You want to feel good, energetic, and rested.&nbsp;And yes, as Munger says, it sounds selfish, but it works. Over the long-term, it will make you more reliable. When you improve your mind a bit every day, that results in&nbsp;mental&nbsp;compounding interest. It will become very hard to fail at anything in life that way.You know what I realized over the last few months as I’m applying this technique? My best hour is often after dinner. Especially if I’ve worked out that day and was productive at work. I’ll have dinner, maybe relax a bit, grab a cup of tea and get down to it.&nbsp;Before this, I would often watch some videos on YouTube or browse the internet. Often, you don’t even realize what’s the best hour of your day. You must be conscious and always keep adapting your habits so that it’s in line with your energy. Look, maybe my best hour will be the first hour after I wake up again. Who knows? But as long as you adopt the shape of water, you will adapt.Give this Munger Technique a try. From tomorrow, give the&nbsp;best hour&nbsp;of your day to improving your mind. If you do it every day, the knowledge will compound.<h1>Want To Get Tips For Personal Growth During A Crisis?</h1>I'm continually researching ways we can improve ourselves so we can get through this pandemic stronger. Join my newsletter to get my latest tips. I’ll also send you my Growth Kit, a bundle of 6 useful resources.<div data-element="fields" data-stacked="false"><button data-element="submit">JOIN NOW</button></div>No ads. No spam. Unsubscribe at any time.<h3>Spread The Word:</h3>

The Munger Technique will make you a reliable person. When you improve yourself a little bit every day, the improvements add up.

We’ve all heard about the magic of compounding interest. Something equally powerful is mental  compounding interest. Here’s some advice from the investor Charlie Munger that I read in the book, <a aria-label="undefined (opens in a new tab)" data-amzn-asin="0998406260" dir="ltr" href="https://www.amazon.com/gp/product/0998406260/ref=as_li_qf_asin_il_tl?ie=UTF8&amp;tag=dariusforoux-20&amp;creative=9325&amp;linkCode=as2&amp;creativeASIN=0998406260&amp;linkId=acc0ff87c87e04d39af6ae3ba958a954" rel="noreferrer noopener">University of Berkshire Hathaway </a>: “He (Munger) got the idea to add a mental compound interest as well. So he decided he would sell himself the best hour of the day to improving his own mind, and the world could buy the rest of his time. He said it may sound selfish, but it worked. He also noted that if you become very reliable and stay that way, it will be very hard to fail in doing anything you want.”

We’ve all heard about the magic of compounding interest. Something equally powerful is mental  compounding interest. Here’s some advice from the investor Charlie Munger that I read in the book, <a aria-label="undefined (opens in a new tab)" data-amzn-asin="0998406260" dir="ltr" href="https://www.amazon.com/gp/product/0998406260/ref=as_li_qf_asin_il_tl?ie=UTF8&amp;tag=dariusforoux-20&amp;creative=9325&amp;linkCode=as2&amp;creativeASIN=0998406260&amp;linkId=acc0ff87c87e04d39af6ae3ba958a954" rel="noreferrer noopener">University of Berkshire Hathaway </a>: I’ve been calling this idea the Munger Technique since I learned about this. But when I mention this to my students, team, or friends, the majority assumes that Munger is talking about a morning ritual. That’s a wrong assumption. Munger said that he sold himself the best hour of the day. He used that hour to improve his mind.

Let’s think about that for a minute. Again, this has nothing to do with morning routines. For the past several years, people in personal development have been giving a lot of attention to morning routines. I’m personally not a morning person, nor do I have a strict routine. Sure, I avoid checking my email, watching the news, or consuming useless content, but I don’t have a set routine in the morning before I start working. I know that some people like that structure. For example: <ul><li>Wake up at 7 AM </li><li>Drink water </li><li>Meditate </li><li>Journal </li><li>Read </li><li>Go </li> </ul>

And it must  be in that order. That’s not me. <a aria-label="undefined (opens in a new tab)" dir="ltr" href="https://dariusforoux.com/working-from-home-tips/" rel="noreferrer noopener">I immediately start working </a>. As long as I can tune out all the distractions of the world, I consider it a good morning. But when I read this advice from Munger, I asked myself two questions:  <ol><li>When do I improve my mind? </li><li>How do I improve my mind? </li> </ol>For me, improving my mind means improving my key skills: Writing, persuasion, decision making. I read books, make notes, and try to connect the dots between everything I learn. When I try to improve my mind, I only want to learn. The doing comes later. That’s how  I do it.

But when  do I work on improving my mind? Until now, I believed that I should do that in the morning. After all, that’s our best time, right? Well, not always. One of my key beliefs is that <a aria-label="undefined (opens in a new tab)" dir="ltr" href="https://dariusforoux.com/cyclical-nature-of-life/" rel="noreferrer noopener">life is cyclical </a>. I learned this from studying successful investors like Howard Marks. They often stress that on a day to day basis, stocks go up and down a lot . But if you look at the stock market over ten, twenty, or thirty years, you see a steady upward trend. Something similar happens to our days. One day you might feel good, another day, you might feel tired. It’s just like the stock market. And that’s why I’m not a fan of morning rituals. It’s simply unrealistic to expect you to feel the same way every single day of your life.

I understand the argument for morning routines. The idea is that a good morning ritual will make your day better. But in my experience, that’s not the case. <a aria-label="undefined (opens in a new tab)" dir="ltr" href="https://dariusforoux.com/manage-personal-energy/" rel="noreferrer noopener">Sometimes you simply wake up with less energy </a>. Sometimes you have an emergency. If you have kids, your mornings are dedicated to them. In those cases, you can meditate all you want, you’ll still be tired or have to deal with that emergency. You can think of many reasons morning routines don’t work. But the Munger Technique always works. Let me explain why.

If we adopt the mindset of an investor, and realize that our days might be up and down, how can we still be reliable over the long-term?  We can do that by adopting what I call a “Water Mindset.” I named this after Bruce Lee, <a aria-label="undefined (opens in a new tab)" data-amzn-asin="0804834717" dir="ltr" href="https://www.amazon.com/gp/product/0804834717/ref=as_li_qf_asin_il_tl?ie=UTF8&amp;tag=dariusforoux-20&amp;creative=9325&amp;linkCode=as2&amp;creativeASIN=0804834717&amp;linkId=1f79800f5e3ad98c5b500ba9f54edb7e" rel="noreferrer noopener">who believed that we must be like water </a>. Water always adopts the shape of its surroundings.  And the Munger Technique will help you to become like water. Give yourself the best hour of the day. And your best hour might be in the morning one day, and it might be after dinner the next. But it must be your best hour (not what some blogger says).

This technique has massively shifted the way I learn. I no longer get frustrated if I can’t learn in the morning, I simply realize it’s not my best hour. When it comes to improving your mind, you want to be in a relaxed, more flow-like state. You want to feel good, energetic, and rested.

And yes, as Munger says, it sounds selfish, but it works. Over the long-term, it will make you more reliable. When you improve your mind a bit every day, that results in mental  compounding interest. It will become very hard to fail at anything in life that way. You know what I realized over the last few months as I’m applying this technique? My best hour is often after dinner. Especially if I’ve worked out that day and was productive at work. I’ll have dinner, maybe relax a bit, grab a cup of tea and get down to it.  Before this, I would often watch some videos on YouTube or browse the internet. Often, you don’t even realize what’s the best hour of your day. You must be conscious and always keep adapting your habits so that it’s in line with your energy. Look, maybe my best hour will be the first hour after I wake up again. Who knows? But as long as you adopt the shape of water, you will adapt.

Want To Get Tips For Personal Growth During A Crisis?

Give this Munger Technique a try. From tomorrow, give the best hour  of your day to improving your mind. If you do it every day, the knowledge will compound. I'm continually researching ways we can improve ourselves so we can get through this pandemic stronger. Join my newsletter to get my latest tips. I’ll also send you my Growth Kit , a bundle of 6 useful resources. No ads. No spam. Unsubscribe at any time.