📈 The 1% Raise Rule

The Study That Fixed America's Savings Problem

In the late 1990s, economists Richard Thaler and Shlomo Benartzi had a problem: people knew they should save more, and did nothing anyway. So instead of asking people to cut spending now, they asked for something almost nobody said no to — a small piece of their next raise, before they ever felt it land.

The trick wasn't discipline. It was timing the ask for a moment that never felt like a sacrifice.

📈 Ride Your Own Raises

1. Pick your number now, before your next raise happens. Even 1% counts — the size matters less than the automation.
2. Set the increase to trigger automatically. A rule you have to remember to apply is a rule you'll skip.
3. Let your take-home pay barely move. That's the entire point — no lifestyle downgrade to notice.
4. Repeat it at every raise, forever. It compounds quietly in the background while your spending habits stay the same.