This 20-Something Has $100,000 in the Bank—Here's How He Avoids Overspending

by Danielle Directo-Meston

Saving money sounds fairly simple, at least until you’re stretching every last dollar of your paycheck after realizing that those occasional almond lattes added up fast. Overspending is clearly much easier, but according to one millennial with over $180,000 in the bank, stashing away over half your income isn’t entirely impossible, as long as you follow the right financial philosophy.

Before that paycheck has time to settle into your pocket, you should automatically contribute money into your 401(k), IRA, and index funds, says Sean (the pen name he goes by), a 27-year-old blogger behind My Money Wizard. While those “off-the-top” savings may seem like a no-brainer, the financial analyst goes on to tell Business Insider that he’s able to save 65% of his $80,000 salary by following another incredibly simple rule of thumb. Ready to hear it?

Whenever he’s in a situation to spend money, Sean calculates the value of his time versus the cost of his potential purchase. Regardless of whether it’s a gourmet burger or a shiny new car, “so many people get caught in the race of materialism,” he tells Business Insider. “Every purchase costs me time, the most limited resource we have.”

While we’ve all used major adult accomplishments to reward ourselves (including a new pair of heels), we’re most likely to think twice after tallying up how many hours it took to work for them. Putting those shoes back on the shelf is much easier when early retirement seems like the better payoff, no?

What tricks do you follow to keep from overspending? Let us know in the comments below.

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