What Is the Two Oreo Principle (And How Small Actions Compound Into Big Results)
Every action counts. Even the ones you think are inconsequential matter. Find out how the Two Oreo Principle affects your business.
Do you know how little things can add up over time?
Whether good or bad, the little actions you put into play have big reactions further down the line.
This is what I mean by that…
About a year ago, I started having some health issues.I got this thing called an ocular migraine that led to a twitch in my right eye. It didn’t stop there, though. I also got these weird muscle spasms and a pounding in my chest. Something was wrong, and I wasn’t as healthy as I should be.
So, I stepped on the scale and got the surprise of my life. How did I gain 10 pounds over the past year?
This wake-up call started a little investigation on my part. Because there was no way that 10 pounds just snuck up on me without me knowing.
Thinking back, my diet wasn’t much different, and I didn’t exercise any less than normal. The change happened when we moved. In the process of moving, I found out the location of my wife’s snack cabinet.
Now, my wife is one of those people who can buy some snacks and eat a little piece here and there over a long time. And that’s just not me.
I may not eat the snacks in one sitting, but I will eat them until they’re gone. That’s why I usually don’t like knowing where the snacks are because I know I’ll eat them.
And with this move, that’s exactly what I did.
I started eating some Oreos — every day.
This is one of those small actions that you do and you don’t realize what the long-term consequences are. Maybe you’re like me and you think, “Oh, it’s just a few Oreos here and there.”
But those little actions can make a big impact.
For example, if I ate two Double-Stuffed Oreos per day for a year, I’ll have consumed 40,000 calories. If you think each calorie is worth a pound, guess what happens when you eat an extra 40,000?
You may think that your little actions may not be a big deal. But they may have consequences later down the line.
These small actions with big consequences are what I call the Two Oreo Principle.
How Can This Apply to Your Business?
The Two Oreo Principle works in different areas of your life, for good or ill. These are some of the ways that it affects your business:
#1 — Subscriptions to Software Services
Software subscription services may seem like a good idea at the time. But it can end up costing you a lot of money over time.
Let’s say that you sign up for a free membership.
You know that, eventually, that free ride will end so you’ll have to pay real money for it. When it comes time to buy the real subscription, though, it may not be that much.
At the time.
So, you pay $40 per month. Over a year, that $40 that you thought was pocket change turns into $500.
Of course, some software services are necessary to run your business.
I’m not saying that all of these types of services fall under the Two Oreo Principle.
They’re like gym memberships.
If you don’t go to the gym regularly, can you really justify the monthly membership?
Maybe you could’ve used that $500 to invest in your business. Or maybe you could’ve attended that leadership seminar.
But you wasted your money on these little actions, and it added up into a big hole in your pocket down the line.
#2 — Social Media
Social media is another great example of the Two Oreo Principle. It doesn’t rob you of your money, at least not directly.
But think about each time you check on your phone.
You may tell yourself you just want to check out the notifications, or someone’s update, or your feed. Over a day, a few minutes here and there add up to hours.
If you have dreams of working on your schedule or making time for yourself, spending time on social media isn’t the way to do it.
It robs you of that valuable time where you could’ve done something productive with your business. Instead, you’re left scrambling for time because those little checks eventually add up into hours.
The Questions You Need to Ask Yourself
Those small actions may not seem like a big deal at the time. But when you need to contend with the consequences, it may take time to rectify.
Losing 15 pounds isn’t easy to do, at least not for me. And it’s certainly not something you can do overnight.
It’s going to take time just like it did for me to lose that weight.
So, to save yourself some trouble you need to be mindful about what you do. Before you sign up for something, first ask yourself, “Is this going to be another Oreo?”
If you look back over the year, is it going to add up and are you going to regret it?
If the answer is “yes,” then don’t do it.
This doesn’t just apply to the actions you haven’t taken yet.
What about accountability for what you’ve already done?
It’s time to go through both your personal and business finances. Identify all those Oreos and add them up.
It’s time to decide whether you want to continue spending money or get that money back and reallocate it to something else.
Take stock of what you do with your time. How much time do you spend checking social media or watching TV?
If you want to reallocate your resources, it’s time to decide to take action.
You need to be intentional about where you use your money and spend your time.
Don’t be the person that looks back and says that they wish this didn’t happen and that it all added up unknowingly. Make the conscious choice to identify those areas.
Don’t Let Oreos Sneak Up on You
I didn’t think a couple of Oreos could make such a big impact on my life. But that’s how the Two Oreo Principle works.
It’s those little choices that we don’t think matter in the grand scheme of things that slowly stack up.
Over time, those little Oreos turn into 15 pounds of excess weight. And takes a lot of time and hard work to get back on track.
So, make each choice with intention. Even the small ones.
Your time and money are too precious to squander on little, inconsequential things.
Do you want help identifying those Oreos in your financial statements? Nth Degree CPAs can help.
Call today to schedule a free consultation.
