How to Live Large Without Spending Big
Just hearing the word budget induces automatic eye rolls from most of us, but being disciplined with your money should be commended, not condemned. For most people, being frugal equals TV dinners and no social life, but it doesn't have to be that way. According to Money, you can still enjoy the good life "as long as you keep the pace just a tad below the rate of your rising income." In fact, a PNC Wealth Management survey found most millionaires credit hard work and saving early as the keys to their financial success.
So if you want to become a millionaire, you should probably save half your raises. This is definitely going to speed up your seven-figure net worth; just don't scrimp too much, or you might end up binge-buying. The trick is all in the balance; life wasn't meant to be all savings and no spending. So make sure you save some of your regular pay and some of your bonuses, about 50% is recommended, then spend the rest. According to Susan Mitcheltree, a financial planner in Lutherville-Timonium, Maryland, “It’s important to celebrate your successes." But all signs point to starting your saving early, because if you do, you could end up with a few million dollars.
To read more tricks to living well while spending less, visit Money.
Have you started a savings plan yet? Let us know in the comments.