Many of us think about adding money to our 401k or 403b and we panic with fear. We tell ourselves thatÂ Â if I put (any) more away, I might not have enough now!Â But that’s a pre-conditioned fear we’ve created for ourselves about money.
About a year ago, Jim Blankmenship, who authors the blog www.financialducksinarow.com, challenged his readers and fellow bloggers, to spread the word about the 1% challenge. This year he’s declaring November the 1% month.
Why 1%? My take is that most people can put an additional 1% away and not even feel a difference. If you put 0% away two years ago, and 1% after the first challenge last year, and 1% this year, seeing how easy it is, next year you might put 2% away, then 3% and 5%, or 8% the following year?
The growth you’ll see in your savings as a result of accepting the 1% challenge can be exponential. Physically, your savings may grow faster. Seeing this growth you may think, I can do more. As a result, you change, and maybe inspire others to change.Â By increasing your savings 1%, you’re taking a step forward from doing nothing. And we all know that the journey of a thousand miles begins with a single step.
Last year I accepted the challenge and increased my savings. It didn’t hurt much at all. As a result, I decided to set up automatic monthly contributions to my family’s ESAs, Roths, and other retirement savings, instead of contributing at tax time. All as a result, I’ve seen steady growth through automatic savings and a favorable market. More importantly, I’m not worried about 1% anymore. Take the challenge today!
Other 1% articles:
The 1 Percent SolutionÂ by John Davis,Â @MentorCapitalMg
Friday Financial Tidbit-What increasing your retirement contributions 1% can do for your retirement accountÂ by Jonathan White, @JWFinCoaching
THE 1% MORE BLOGGING PROJECTÂ by Robert Flach, @rdftaxpro
Take a Small Step: Increase Your Savings by 1%Â by Jim Blankenship, @BlankenshipFP