The Slow Magic of 1% Improvement

The Slow Magic of 1%

I find that most people start something new and then shift because they can’t see the results quickly. I created this sheet to answer a question. If I could only get 1% better each week, what would that look like over a year.

You can download this sheet and try for yourself by entering in your current loan closings now in Week 1 and the default compounding (I have it set to 1% a week) to see what that looks like for you. Maybe if you can see it, and track it, you’ll be more patient?

Let’s say you’re closing four loans a month. You want to get better — not 10x overnight, just a little better each week. So you commit to 1% improvement: one better question in every client conversation, one better follow-up for every referral, one better morning routine that you can say, to yourself, ‘this week I was 1% better.’

At first, nothing changes.
It feels like pushing a car in neutral uphill.

Then one day, momentum kicks in.
By the end of the year, you’re not at 4anymore — you’re at 7.
That’s not luck. That’s compound effort. It’s week 13 before that 4 becomes a 5, and then week 32 before it becomes a 6, but you finish the year at 7 closings.

We see compounding in money all the time.
But the same math works on habits, relationships, and skills.
The difference is, we don’t get a monthly statement showing our progress.
We just wake up one day and realize the curve bent upward.

Most people quit before compounding starts.
They mistake “invisible progress” for “no progress.”

But the truth is, exponential growth hides in linear effort.
Do the small things long enough, and the curve starts to take care of itself.

So if you’re improving 1% this week, don’t stop.
The magic is already happening —
you just can’t see it yet.

If you aren’t, consider joining a group that will help you compound at a higher rate each week, as 1% is just the beginning.

a BORROW SMART CONCEPT
Is Leverage Good or Bad? It Depends.

How Leverage Works — And Why This Chart Should Make You Think Twice

Leverage is a powerful financial tool: it allows investors to amplify returns by using borrowed capital. In simple terms, if a regular investment goes up 10%, a 2x leveraged ETF could return 20% — double the gain. But here’s the flip side: if that same investment goes down 10%, the leveraged product could lose 20% or more.

📉 Leverage magnifies both gains and losses.

This chart of the Levered ETF Universe tells the story clearly:

• 🔺 The red line (AUM) shows that assets under management in leveraged ETFs have exploded since 2022, hitting over $130 billion by mid-2025.

• 🔢 Meanwhile, fund count (black line) dipped during volatile years like 2020, but has since surged to record levels, now over 400 funds give you the ability to buy stocks with borrowed money.

So what’s the takeaway?

• ✅ When markets trend strongly upward, leveraged ETFs attract huge inflows — investors chase amplified returns.

• ⚠️ But during downturns, losses are equally accelerated, often leading to panic selling, fund closures, or long-term erosion of capital.

🏡 What About Real Estate? The Everyday Use of Leverage

The majority of homeowners are also using leverage — whether they realize it or not.

If you buy a home with 20% down and finance the rest with a mortgage, you're using 5X leverage. Said differently you are using $40,000 to control a $200,000 asset.

That means if your home's value increases by just 2%, your return on equity isn’t 2%, it is 10%. If you invested $40,000 to buy a $200,000 house, and the house goes up in value by 2%, the house is now worth $204,000. You made $4,000 on your house investment of $40,000.

$4,000 / $40,000 = 10% Return But if the house loses value, your equity erodes just as fast — or faster. That’s the two sided nature of leverage.

Here's the difference:
Unlike stocks investments, real estate is both an investment and a utility. You still get to live in the asset — even if prices decline temporarily. It’s shelter first, investment second. That unique benefit makes real estate a productive use of leverage, especially when borrowing is done smartly to create more wealth.

Smart leverage is about risk management.
Used correctly, it can enhance growth. Misused or misunderstood, it can destroy wealth quickly.

If you're going to use leverage — in the market or in real estate — do it with a plan. Understand the cash flow, the volatility, and how to protect yourself on the downside.

LIABILITIES
What’s Happening?

REAL ESTATE
What’s Happening?

ASSETS
What’s Happening?

ON BEING HUMAN
What’s Worth Sharing?

DOPAMEMES
And Other Happy Moments…

AI
and The Future of Work…

Borrow Smart University || National Institute of Financial Education