Can You Improve Your Return on Life by 1% Each Day?
Would you like to achieve a 37X change in your life by this time next year?
According to productivity expert James Clear—and a little bit of math—that’s how big of an impact just a 1% daily improvement can make over time.
Of course, the reverse is also true: take too many small steps back from your goals, and you will find yourself back at the bottom of the hill.
Also referred to as the principle of ‘aggregate marginal gains,’ the idea is that the small gains associated with improving by just 1% consistently will add up to remarkable improvement. This principle applies to our savings, too. If we regularly save small amounts of money, we can accumulate large sums through the benefits provided by compound interest.
In the same way that compound interest grows wealth exponentially, compounded efforts create exponential personal and professional transformation.
Kaizen (Japanese for improvement) refers to business activities that continuously improve all functions and include all employees. It can also apply to processes that cross organizational boundaries.
The philosophy of Kaizen isn’t limited to corporate environments—it has found a dynamic application in sports as well. For example, Duke’s men’s basketball team introduced the concept this year. While it didn’t result in the national championship they had hoped for, they attributed much of their success this past season to embracing Kaizen.
Let’s discuss the potential power of 1% improvement and three simple ways to help you achieve more and improve your Return on Life (ROL).
1. Reassess your annual goals.
If you’re maintaining any kind of progress on the goals or resolutions you set at the beginning of the year, you’re already way ahead. Most people abandon new goals after a couple of months. Feeling that you want to keep improving suggests you’ve set meaningful enough targets for you to keep going.
On the other hand, if you don’t feel the same drive you felt when choosing a particular goal, maybe you didn’t choose the right one in the first place. Or perhaps your priorities have shifted, and you want to improve in a different area. Refocus on a goal you’re personally invested in, and you’ll have a much better chance of making continuous improvements.
2. Do 1% more of what’s already working.
The most effective path to improvement is to complete small, actionable tasks that build and maintain forward momentum. That could mean jogging X miles every morning as you build towards running a marathon or saving X dollars from every paycheck as you pad your savings account for a home purchase.
If you have effective steps in place, ask yourself, “How can I improve that step by 1%?”
- Could I increase my runs by 1% every day?
- Could I lift weights that are 1% heavier?
- Could I increase my savings by 1%?
- Could I raise my daily reading goal by 1%?
- Could I work 1% harder on the presentation I have to give at my next board meeting?
- Could I spend 1% more of my free time with my spouse or kids? Volunteering? Mentoring?
You probably won’t notice the effects of these small increases in the moment. But that’s the magic of compounding: every time you raise the bar, you’re automatically raising the bar for tomorrow as well. And as those daily wins keep racking up, so will your progress toward your ultimate goal.
3. Avoid small setbacks.
What’s the harm of skipping a morning bike ride if you didn’t sleep well the night before?
Why not buy an extra takeout meal this week if you really don’t feel like cooking something healthy?
Every compromised commitment does more than delay your progress. It also reinforces a cognitive bias known as moral licensing, where previous’ good behavior’ justifies future lapses. Over time, this undermines the psychological momentum necessary for sustainable improvement.
To prevent these minor setbacks, look for ways to simplify and automate your daily routine. Focus on a single exercise during your daily workout instead of trying to hit every muscle group. Use time blocking or other scheduling techniques to move efficiently from one task to the next. Try automating savings and investment deposits in your banking app so you can pay yourself first. Set your Spanish flashcards on the breakfast bar so you can’t miss them while drinking your morning coffee.
Sometimes, revisiting what you have already accomplished can be a powerful motivator. Each incremental improvement you make represents a brick in the foundation of your larger life plan. As you strategize your next stage of growth, consider making an appointment to review—or to start building your Life Plan. You have already accomplished a great deal. Together, we can ensure your efforts today align powerfully with the legacy you’re creating for tomorrow.
This Week’s Favorite Reads
This week’s favorite reads include articles discussing when to start collecting Social Security benefits, additional ways to use your iPhone, tips to help you reduce your online shopping activity, what happens to your brain when you retire, and places you can sell or trade in clothes you no longer want.
Here are the links to this week’s articles, as well as a brief description of each and why you should check it out:
1. Is It Better to Collect Social Security at 62, 66, or 70? An Extensive Analysis Offers a Very Big Clue.
The Social Security Administration uses four variables to calculate your monthly benefits:
- Work history
- Earnings history
- Full retirement age
- Claiming age
Social Security often accounts for a significant portion of a retiree’s income. As a result, it’s important to understand the impact each of the above items has on your future benefits. You want to get as much as you can out of Social Security. The longer you wait to start—you can begin as late as age 70—the larger your benefit. As shown in the table in the article, those born in 1960 or later will receive only 70% of their full retirement age (FRA) benefit if they start collecting benefits at age 62.
On the other hand, they will receive 124% of their FRA benefit if they can wait until age 70 to start claiming benefits. The answer to this question is certainly not one size fits all. But, waiting typically provides financial perks for a majority of retirees. For more on Social Security benefits, please check any of the following blogs: Social Security Tax Torpedo, Social Security Mistakes Made by Couples, Social Security Facts for Women, and Some Questions and Answers About Benefits.
2. 18 Things You Didn’t Know Your iPhone Could Do.
Even long-time users probably don’t know every feature that their iPhone offers. Did you know you can use your iPhone to identify plants or animals? I didn’t until my kids showed me this trick. It can be fun to use while hiking or visiting a new area. I haven’t tried copying or translating text with my camera, but I can see that being handy. Sharing a Wi-Fi password with a QR code makes sharing with friends or family who don’t use an iPhone easier. Check out the article to learn more about these and other tips.
3. Online Shopaholic? Here Are 7 Ways To Stop.
Do you add items to your cart a little too frequently? One could argue that online ordering is too easy. Online sales continue to increase, rising 8.2% to almost $1.2 trillion in 2024. This article offers seven tips to help you stop—or at least scale back—your online shopping habit. Walking away and revisiting represents one of my favorite strategies. Try saving an item in your cart or putting it on your wish list. You might find that you can move on without it. Save an item in your cart without completing the purchase, then come back at a later date. If you forget about it, you can move on without it. You can also try selling or donating something every time you buy something. Make your closet one-in, one-out. Following this practice can prompt you to stop and think before making a purchase. The article also includes five other suggestions to help you reduce your online shopping activity.
4. What Happens to Your Brain When You Retire?
Retirement represents a significant transition. Staying mentally sharp and healthy through this transition can be challenging. As with most transitions, careful planning is one of the keys to success. You don’t want to wait until retirement to plan for retirement, either. Finding a new sense of purpose, staying social, and trying new things can all help us stave off the depression that can come with retirement. These things can also help boost your sense of meaning. You may also find these articles helpful: 5 Best Practices for Keeping Your Brain Healthy and Sharp, and Will Stimulating My Brain as I Age Keep It Sharp?
5. Where to Sell Clothes and Make Money.
They say one person’s trash can be another person’s treasure. This saying can apply to your clothes. If your closet is bursting at the seams, or you could use extra cash, try selling some clothes you no longer want. The article offers several suggestions.
In some cases, you will receive discounts on future purchases. In others, you can receive cash in return. In addition to the suggestions in the article, you can also try Uptown Cheapstake. My wife and daughter have had some success getting cash for items they no longer want.
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