15 Tips to Save Your Way to $1 Million
There are many traits that millionaires possess, and frugality comes high-up on the list. In fact, 74% of America’s millionaires claim that saving is the key to their success. Yes, these people can afford to spend, but it goes hand in hand with discipline. If you’re hoping to reach the 7-figure mark during your lifetime, you’ll need to train yourself to spend less and save more. Here are 15 tips that will help.
1. Use a Bank That Doesn’t Charge Checking Fees
At most high street banks, you can expect to pay monthly fees of $14.89 in maintenance fees. Instead of paying this monthly fee, you can save $179 per year by switching to an account that doesn’t charge checking fees. 11% of brick-and-mortar banks offer this saving, compared to 69% of online banks. If you’re unable to find a traditional bank in your area, switch to Ally. This online bank has been voted the best of the bunch.
2. Stick to the Same Car
Don’t be tempted to take a loan every 3-years on a brand-new car. A car is a depleting asset and wealthy people tend to hold onto their cars for a long time. The best thing you can do is keep on top of regular maintenance like oil changes to keep the engine healthy. And drive gently. Don’t slam on the breaks or accelerate aggressively.
The average car payment in America is $503 per month. If you decide not to take out a new loan and stick with your existing car you could save $6,036 every year.
3. Find a Keeper Home
Millionaires make sure that they aren’t house-poor. This frees them up to use their money in other ways. Just like sticking to the same car, don’t trade-up your house for a bigger model. Stay put, pay off your mortgage and if you need a change do a bit of remodeling instead.
