The 1% solution relates to life and what we must do to make it work. The circle below represents any challenge or obstacle we must face whether it is a task, a project, or a goal. We must give the 1% to get what we want. Life might require more than the 1% to get all we want, but that is the starting point. To write a hundred page book one must write the first page. Focus on the next task at hand. Finish it, Start the next. Finish what you start. The journey of a thousand miles begins with the first step.

Planning The circle represents a day. There are 1,440 minutes in 24 hours. One percent equals 14.4 minutes, lets round that to 15 minutes. Why not use that 1% to plan for the other 99%? If we do not have time to plan, how do we have time to do it over? Most people do not plan to fail, they just fail to plan.
Investment Goals. The circle now represents an amount money we need to accumulate for retirement, college expenses, or anything. Why not invest 1% of your goal each year? With a 7% return and 30 years you will reach your goal. If you invest 2% and get an 8% return, your goal will be reached in 20 years.
Life Insurance Now the circle represents your annual earning potential. Wouldn’t it make sense to spend 1% of your earnings to insure that the investment goal from above is met in your absence?
Disability Income Insurance. Let’s say the circle represents your earned income. Wouldn’t it make sense to let 1% (or 2%) each year help protect the other 99%?
Estate Planning. The circle now represents the sum of your investment goals and hard work – your estate. If your estate is worth 10 million dollars, the estate tax liability will be between 4 and 5 million dollars. Why not use 1% ($100,000) of your estate annually to reduce or eliminate that tax liability from the other 99%. If they do away with the estate tax, that will be more for your heirs or charity.
Business Planning. The circle represents your business’ sales why not use 1% of those sales to protect the other 99%? If it makes sense to insure your buildings, inventory, and PCs, why doesn’t it make sense to insure the rainmakers, the VPs and the president who help create those sales?
The 1% solution is the way to simplify things. It helps put things in perspective. How does one eat an elephant – one bite at a time.