Kaizen is a Japanese word referring to the process of continuous improvement. The idea of kaizen is that big results come from many small changes accumulated over time.
My challenge to you is to increase your income by 5% each month. This becomes a 79.6% increase in income at the end of your first year. By year two, you will have achieved a 322.5% increase, effectively more than tripling your income.
For example, suppose you’re currently earning $3,000 per month. Watch how this can work:
Year 1
- Month 1: $3,000 x 5% = $150
- Month 2: $3,150 x 5% = $157.50
- Month 3: $3,307.50 X 5% = $165.38
- Month 4 $3,472.88 X 5% = $173.64
- Month 5: $3,646.52 x 5% = $182.33
- Month 6 $3,828.85 x 5% = $191.44
After 6 months: $4,020.29 (34% increase)
After 12 months: $5,387.57 (79.6% increase in income). By the 14th month, you would almost double your income.
Year 2:
- Month 1: $5,387.57 x 5% = $269.38
- Month 2: $5,656.95 x 5% = $282.85
- Month 3: $5,939.80 X 5% = $296.99
- Month 4 $6,236.79 X 5% = $311.84
- Month 5: $6,548.63 x 5% = $327.43
- Month 6 $6,876.06 x 5% = $343.80
- Month 7: $7,219.86 x 5% = $360.99
- Month 8: $7,580.85 x 5% = $379.04
- Month 9: $7,959.89 X 5% = $397.99
- Month 10 $8,357.88 X 5% = $417.89
- Month 11: $8,775.77 x 5% = $438.79
- Month 12 $9,214.56 x 5% = $460.73
After 24 months: $9,675.29 (322.5% increase in income) This approach essentially “gamifies” your experience and gives you an incentive to keep improving over time. Each month’s returns compete with the previous month, thus perpetuating the gamification process.
As Charlie Munger says, “Spend each day trying to be a little wiser than you were when you woke up. Discharge your duties faithfully and well. Step by step you get ahead, but not necessarily in fast spurts. But you build discipline by preparing for fast spurts. Slug it out one inch at a time, day by day. At the end of the day – if you live long enough – most people get what they deserve.”
Secure your copy of the “5 Day Weekend” book. 5 Day Weekend: Freedom to Make Your Life and Work Rich with Purpose [Nik Halik & Garrett Gunderson]
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