A Longtime CPA on the "Best Financial Advice" He's Ever Heard
Believe it or not, millionaires typically take one of two paths to seven-figure freedom: They take a huge risk to pursue their dream and start their own business, or they live below their means, save, and invest their way to financial freedom. Obviously, the second option is much more common, and falls in line with CPA Bill King's simple and digestible financial advice: "Same house, same spouse, same car." Business Insider's Thomas Corley, a fellow CPA, actually called this "the best financial advice I've ever heard."
It essentially refers to living simply and frugally, and refraining from increasing your standard of living alongside your income—something Corley calls "lifestyle creep." "The worst part about living paycheck to paycheck is that at the end of your working life, you literally have nothing to show for all of your hard work, except a small amount of equity in your home and your social security benefits," said King. "As a result, most people are forced to sell their home and survive on social security benefits when they can no longer work."
If you live by the "same house, same spouse, same car" mentality, however, you can slowly build your savings and wisely invest those savings. "Given enough time, your wise investments can make you financially independent or even wealthy," adds Corley. In fact, his Rich Habits study found that 83% of self-made millionaires simply lived below their means. "They bought a modest home and lived in it for the rest of their lives. They purchased good used cars. They ate at home, not in restaurants. They were frugal with their money."
How do you live frugally in your day-to-day life? Share your tips below.