Keep a close circle of successful friends
The sum of your savings could depend on the company you keep, millionaires say. Steve Siebold, the author of How Rich People Think and a self-made multi-millionaire, recommends surrounding yourself with people who share your monetary goals and motivate you to achieve them. “In most cases, your net worth mirrors the level of your closest friends,” he wrote for Business Insider. “Exposure to people who are more successful than you are has the potential to expand your thinking and catapult your income.”
Follow the 50-30-20 rule
Forget complicated budgeting or uncomfortable belt-tightening; the secret to saving big might boil down to three simple numbers. Kyle Taylor of The Penny Hoarder told CNBC Make It that he made millions in a matter of years thanks to the “50-30-20 percent” rule. Using this formula, he put aside 50 percent of the money he earned for savings and necessities such as rent and groceries, 30 percent for lifestyle purchases like-new clothing, and 20 percent for fun activities like concerts or eating out.
Need more money-saving ideas? These 46 almost effortless ways to save money are a great place to start.
As counterintuitive as it may seem, nine-time New York Times bestselling author David Bach recommends forgoing a budget. “You’re too busy, and you will just get frustrated and fail,” Bach, the founder of FinishRich.com says. “Instead automate your financial life. When it’s automatic you can’t fail.” That includes having your pay check automatically deposited, along with a regular savings contribution. He also recommends automating all your bills, including car payments, mortgage payments and credit card bills.