Work Smarter, Not Harder

What Is the Best Way to Improve Financially by One Percent Every Month?

How can you best improve your finances one percent every month. How can you work smarter, not harder toward gaining financial freedom?

Paying Off One Percent of Debt Every Month

A one percent improvement every day isn’t always as good as it sounds. Take for instance, improving your financial picture by getting rid of debt. Let’s say you want a one percent decrease in debt every month. Let’s say you wanted to improve your finances and you decided that every month, you would pay off 1% of your debt.

You may be thinking that you’d be able to pay off one percent per month and that it would take you 100 months or eight and a third years to pay off that debt. However, by decreasing your debt by one percent a month, you would be paying off that debt for the rest of your life. Here’s why. Let’s say you have a debt of $65,000 so your first month’s debt decrease would be $650 but then the next month, 1% would be $643.50 and so on. Better to say: “I am going to pay off 1% of today’s amount every month or $650. Even then it would take you 100 months.”

Increasing Income by One Percent per Month