Many of us think about adding money to our 401k or 403b and we panic with fear. We tell ourselves that  if I put (any) more away, I might not have enough now! But that’s a pre-conditioned fear we’ve created for ourselves about money.

About a year ago, Jim Blankmenship, who authors the blog, 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. 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 Solution by John Davis, @MentorCapitalMg

Friday Financial Tidbit-What increasing your retirement contributions 1% can do for your retirement account by Jonathan White, @JWFinCoaching

THE 1% MORE BLOGGING PROJECT by Robert Flach, @rdftaxpro

A Simple Strategy to Maximize Open Enrollment by Jacob Kuebler, @Jakekuebler

Take a Small Step: Increase Your Savings by 1% by Jim Blankenship, @BlankenshipFP

Rich Feight, CFP
Rich Feight, CFP

Hi, I'm Rich Feight I'm a fee-only Certified Financial Planner, successful business owner, and self-made millionaire that knows how to beat the system and become wealthy. I have a lot of clients that have done it too. I'm also pretty good at finding that ever-elusive work/life balance so many of us strive for. Lucky for you I have an abundant mindset and give all my knowledge away on my blog. So if you want to know what it takes to become a millionaire, follow me.

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