How small, sustainable improvements lead to massive results in both lifting and investing.
When it comes to making progress in the gym or with your finances, most people make the same mistake - they try to do too much too soon. This leads to burnout, injury, or financial stress. The solution? The 5% Rule.
What is the 5% Rule?
The 5% Rule is simple: focus on making small, 5% improvements consistently over time. Whether you're increasing weights in the gym or your investment contributions, this approach prevents overwhelm while ensuring steady progress.
Applying to Fitness
Instead of trying to add 20lbs to your squat next month, aim for 5% more. If you're squatting 100lbs now, that's just 5lbs. Small enough to be manageable, but over a year that compounds to nearly 80% improvement!
Applying to Finance
The same principle works for saving and investing. Increase your retirement contributions by 5% of your income each year. Start with 5% of your paycheck if you're beginning. These small bumps add up dramatically over decades.
The Science Behind Small Wins
Research shows that small, consistent improvements create lasting habits. The 5% improvement is:
- Enough to be measurable
- Small enough to be achievable
- Significant enough to motivate continued effort
This creates a positive feedback loop that sustains progress indefinitely.
Getting Started
Implementing the 5% Rule is straightforward:
- Choose one fitness and one financial metric to track
- Determine your current baseline
- Calculate 5% of that number
- Make that your next target
- Repeat monthly or quarterly
Remember, the key is consistency. Small improvements compound into extraordinary results over time.