The 1% Savings Plan: How Just a Little Can Make a Big Difference

Saving money doesn’t have to be painful or overwhelming. In fact, some of the best financial habits begin with something small—like the 1 percent savings plan. It’s simple: just set aside 1% more than you’re saving now. It might not sound like much, but that tiny step can set big things in motion. If you’ve been struggling to get started or feel like saving is out of reach, this practical, doable plan is made for you.

Want a pain-free way to boost your savings in 2025? CPA, author, and blogger Mike Piper suggests this: “Increase your savings contributions by 1 percent of your gross income.” That’s it. Just one percent. It’s a smart, low-stress way to ease into the habit of saving—and it’s a great way to start building financial momentum.

Here’s the truth: anything you do to become a consistent saver will bless your future self. A personal habit of saving not only grows your bank account—it transforms your mindset. It quiets the noise of want, gives you breathing room, and pulls you away from that financial edge where panic tends to live.

Because let’s be honest: money in the bank changes everything.

And yet, we Americans aren’t exactly known for being great savers. In fact, the U.S. personal savings rate has been trending in the wrong direction. Just take a look:

• July 2021: 9.2%
• January 2024: 5.5%
• December 2024: 3.8%

It’s clear—we’re saving less than we used to. But that doesn’t mean we can’t turn it around. Starting small—like with just 1%—can put you on a new path.

• MORE: How to Beat Discouragement to Get Through Tough Times Stronger Than Ever

What 1% Looks Like

Let’s break it down with real numbers.

As of the fourth quarter of 2024, the median weekly earnings for full-time wage and salary workers in the U.S. was $1,192. That works out to about $61,984 per year.

Now let’s do the math:
1% of $61,984 = $619.84 a year, or about $11.92 a week.

That’s less than the cost of two fancy coffee drinks or one takeout lunch. But if you’re currently saving nothing, even this small step gets you started—and that’s the whole point. A jump from $0 to $619 a year is major progress.

And here’s the best part: once you’ve built the habit of saving that extra 1%, it’s much easier to bump it up again in a few months. This is how real savings habits are built—not with giant leaps, but small, steady steps that stick.

It’s More Than Just Money

Let’s be honest—saving money isn’t always easy. Prices keep climbing, and there are plenty of real, pressing needs pulling at every paycheck. It takes guts and creativity to make your money stretch from one payday to the next. I see you, and I get it.

But here’s something I’ve learned the hard way: we can be really good at convincing ourselves that our wants are actually needs. Think cable TV packages, unlimited data plans, drive-thru runs, dinner deliveries, and those $7 lattes. These little luxuries add up fast, and before we know it, money starts to leak out like a slow drip we didn’t even notice.

Once you become aware of the leaks, you can patch them. And every dollar you stop leaking is a dollar you can send into savings. Saving—even a small amount—gives you a sense of control, peace of mind, and the confidence that you’re moving forward, even if the steps are small.

• MORE: Why More Is Never Enough—And the Simple Fix for True Joy

Why Saving Is Essential in Uncertain Times

I wish I could tell you that brighter economic days are just around the corner—but I’d be guessing, and you deserve better than that. The truth? The future feels shaky right now. Policy shifts, inflation, rising interest rates, and whispers of recession are creating a lot of financial fog. And if there’s one thing I know for sure, it’s that uncertainty is a terrible financial plan.

Just this year, new tariffs and policy decisions are already disrupting supply chains and driving up prices. Growth projections are sliding—U.S. economic growth is expected to drop from 2.5% last year to just 0.1% in 2025. Inflation is likely to peak around 4.5%, and unemployment is ticking up too. That’s a lot of red flags waving all at once.

So here’s the question: What if you knew your household income would disappear six months from now? What would you do today to get ready? Would you stash more away? Trim some expenses? Start an emergency fund or boost the one you have?

You don’t need to panic—but you do need to prepare. Because when trouble hits, it’s not your income that gets you through—it’s your savings. Acting now, even in small ways, can help you stay steady later. And hey, if things turn out just fine? You’ve built a stronger safety net and a solid start on a nest egg.

Getting prepared isn’t pessimistic—it’s wise. And it might just be the most empowering thing you do this year.

Simple Tips to Find That Extra 1%

You don’t need a side hustle or a magic wand to find an extra 1%—just a little awareness and a pinch of creativity. That tiny slice of your income is probably hiding in plain sight. Let’s sniff it out together.

1. Brown-Bag It, Just Once.

Pack lunch just one day a week instead of grabbing takeout. That alone could free up $40 a month—or more! Bonus: You’ll probably eat healthier too.

2. Audit Your Subscriptions.

Take a peek at that credit card statement. Still paying for a streaming service you haven’t used since your last binge-watch weekend? Cancel it and reroute that cash to savings.

• MORE: This 5 Minute Self-Checkup to Find iPhone Subscriptions Saved Me a Lot of Money

3. Pocket the Coupon Difference.

If you use a coupon or catch a sale, don’t just celebrate—actually save the difference. Transfer it to your savings account like you never had it to begin with.

4. Round Up and Stash.

Use an app (or do it manually) to round up your purchases to the nearest dollar and stash the change. It’s small but sneaky—those cents add up fast.

5. Skip One Weekly Splurge.

Whether it’s a fancy coffee, drive-thru dinner, or a Target “quick stop,” just skip one a week. That’s your 1%—maybe more.

Finding 1% isn’t about deprivation. It’s about being intentional and choosing where your money goes. Little shifts, big results.

Set It, Forget It, and Watch It Grow

Just one measly percent more than you’re saving right now. That’s it. For some of you, that might mean starting from zero—so saving 1% is a big step. For others, it’s a simple bump: increase what you’re already saving by 1%.

The key is not to overthink it. Don’t wait for the perfect moment or the stars to align. Just choose a spot—your savings account, a cash envelope, even a jar on the kitchen counter—and get it going. Let automation help if it can. Just start.

Why does this work? Because it’s manageable. You likely won’t even miss that 1%, but over time, it adds up. More importantly, it builds the habit of saving—and that habit is priceless.

Here at Everyday Cheapskate, I’ll be cheering you on and sharing ways to make that 1% (and more) easier to find. From trimming grocery costs to slashing bills you didn’t even realize were draining your wallet, that’s what we do—saving money and simplifying life, one doable tip at a time.

I’ll check in again next year to see how you’re doing. (Spoiler: I have a feeling you’re going to surprise yourself.) I’m already smiling just thinking about it.

You’ve got this—and I can’t wait for you to see how far that tiny 1% can take you.

Question: What’s one tiny change you’ve made that made a big impact on your savings? Let’s swap ideas—you might inspire someone else (and pick up a new tip or two yourself).

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