How do you start to save if you have never saved before? Or how do you boost your current savings? The 1% rule and “side hustles” aka extra jobs are great ways to generate income to pay off debts, give retirement a boost, or in general save more money. This post I’m going to focus on the 1% rule.
The 1% Rule
I first learned this method from the Afford Anything Podcast. I’ve mentioned this idea in some previous post, but I wanted to expand more on it.
Basically, this is a simple calculation of your monthly income and taking one percent and moving it directly to a savings account. For example, if you earn $3,000 a month, then one percent of that is $30. You take that and pay yourself first by moving it to a savings account at the beginning of the month.
If you really want to challenge yourself increase that amount by 1% every month for a year. By years end you are saving 12%! I like this approach because it enables you to start small and gain small victories that can help motivate you to build upon. This is the perfect step to use if your new to the savings game. This simple method is a great way to start your savings, retirement accounts, or other investment opportunities. By just improving 1% you can accomplish any of your goals taking one small step at a time.
The 1% rule can be used for anything in life! You can use it to get healthy by working out for 24 minutes or 1% of your day, continue your education by reading for 24 minutes or spend more time with the family. These are just some examples of what could be done.
I can’t wait for you to explore this rule!