Welcome to Car Talk. This is not talking about cars, this is talking inside of a car. Today’s topic is about what I call 5% more. Now, many people look at things of their life whatever area they want to improve in, whether it be growing their business, earning more money at a job, getting good at some particular skill, and they see people that are really top-tier, and they think that they don’t have what it takes. But what many people don’t see about all people that are top-tier of anything is that it’s the accumulative affect of many, many years of things. You don’t have to make huge jumps all the time. What you have to do is just get a little bit better all the time.
Think about it. If you are at a job, and you can increase your salary 5% per year, over the course of 10, 20, If you can increase your pay if you increase your sales it’s not what you might want, but the accumulative impact of that compounding is substantial. And it makes me think about that, ’cause the other day I did a talk, I think about the sliding scale of potential, how if not so much about what you can do or not do, you can always go just a little bit more. You can always go 5% more, and if you can just do 5% more on a regular basis, you don’t have to hit home runs all the time if you can just hit singles on a regular basis, the effect of those compounding is far greater. Just like, and this not 5%, more like 10%, but if you can make 10% on your investments every year, it’s not a lot each year, but over the course of a long period of time, it is substantial, and it’s the same idea. The compounding effect of interest is the same idea that I use now.
If you’re trying to get better at shooting free throws, you don’t have to be better wildly better all the time if you can just be 5% better, say per month, then you will be good before you realize it. And a lot of times, it’s about the small compounding steps versus the huge steps that really add up over time. And that is what I consider the 5% more principle. You don’t have to have 100%, you don’t have to double your money every year, you don’t have to do anything crazy in your result to have them have a powerful, powerful impact over the course of years. If you just think, “I don’t have to do something “twice as good as what I do now, “I just need to increase by 5%.” It’s a much more manageable number, but over time, you’ll be amaze at how much that adds up. And that is the principle of 5% more. Car talk, Tyler Douthitt.