1. They establish savings goals early in their lives
They did this early in their work lives, long before they accumulated their millions. With your first paycheck, get into the habit of saving something — 10% or 5% or even just 1%. This creates a savings habit.
2. They are frugal
They spent their money wisely. It meant buying quality items or services at bargain prices, looking for value and quality.
3. They avoid lifestyle creep
They forgot the desire to increase their standard of living in order to match their increased income. Instead, they sock it away into savings and investments that grow in value and provide financial resources that can be used in the future to maintain your standard of living.
4. They make their money invisible
Making your money invisible means putting it away to work for you immediately before you see it in your checking account and are tempted to spend. Every time you get paid, immediately move a specific amount of your net pay into the savings account.
5. They keep their expenses low
• Don’t spend more than 25% of your monthly net pay on housing.
• Don’t spend more than 15% of your net monthly pay on food.
• Don’t spend more than 10% of your monthly net pay on entertainment.
• Don’t spend more than 5% of your monthly net pay on auto loans or auto leases.
• Don’t spend more than 5% of your net annual pay on vacations.
• Never gamble.
• Stay away from accumulating credit card debt.
• Always invest your savings prudently.
• Max out your contributions to your company retirement plan.
6. They avoid spendthrift friends
If you want to adopt good money habits, you need to associate with individuals who possess those habits and you need to disassociate yourself from those who do not.
7. They marry well
They find a spouse who shares their money values and money habits. Because they are on the same page when it comes to money, they function as a very efficient team when it comes to saving money, spending money, and investing their money.