You probably already know that we ought to save before we spend. And most financial consultants recommend you save between 10%-30% of your income.

But with so many bills to pay, many of us say we cannot afford to save 10 percent. What do we do?

Darren Hardy shares in his book “The Compound Effect” about the story of his personal assistant Kathleen.

Kathleeen came to Darren with her arm full of her bills and invoices and says to Darren:

“What you are teaching is totally impossible. There’s no way I can save 10 percent of my income. Look at all my bills. There’s no money left at the end of the month. I need a raise.”

Darren laughed and replied, “I’ll do you one better. I’ll show you how to get wealthy.”

Surprised by the response, Kathleen replied, “Alright I’ll accept the challenge”.

Here’s what Darren worked with her.

Kathleen made $40,000 a year, or $3,333 a month.

For the first month, all Kathleen did was save 1 percent, or $33. She opened up a separate bank account and deposited $33 in it.

She saved that $33 by bringing in her lunch just one day a week, rather than going downstairs and getting her sandwich and soda.

Month 2, she saved an additional 1 percent — $33, which came from changing her cable subscription. Now she was saving 2 percent.

Month 3, she saved another 1 percent — $33. Instead of going to Starbucks to get her coffee, she bought the Starbucks beans and brewed them in the office.

At the end of the year, she was saving 10 percent — by doing a little bit more at the end of each and every month. She was amazed at how much she was saving without feeling any significant changes to her lifestyle.

At the same time, Darren taught Kathleen was how to spend some of her entertainment time on her education. With her new found knowledge, she began to have creative ideas.

Darren made a deal with her — if she came up with ideas to save money for the company outside of her normal work duties, he would give her 10% of the savings. Also, any moneymaking ideas she came up with for the company outside of her normal duties, he would give her 15% of the additional profit.

What was the result?

At the end of the second year, Kathleen was making $100,000 a year, on the same $40,000/year base salary.

Today, she is earning $250,000 a year, and she has assets well above a million dollars. She is a millionaire.

She is a living example of “The Compound Effect”.

Can you see how you can apply the Compound Effect in your life?

By starting small with just 1 percent, then adding another 1 percent every subsequent month, you can reach 30 percent savings in 30 months.

To accelerate your wealth, convert some of your entertainment time into education time.

With your newfound knowledge and creative thinking skills, add more value to your company and soon you can ask for a raise or make a deal for additional income.

Or learn a new moneymaking skill to start a small online business at the side.

Small steps. That’s all it takes. But when done consistently over time, the end-results will be massive.

So… what is that 1 percent that you can start with today?