If you are 30 and want to become a millionaire, you must save and invest reasonably for the next 35 years about $450 a month, according to this article by Kiplingers.
Oh really? Among the suggestions to find the extra $450 hanging around is raising your auto insurance deductible to $1,000, buying generic-over-the-counter medicine and taking advantage of tax exemptions.
Out of all the suggestions in the article, I think finding tax exemptions is the one I need to work on the most. Part of me is a little wary of all the paper work, but it’s costing me money in the long run. The suggestions seem pretty sensible. Bringing lunch to work is like the cornerstone of frugality, nowadays.
What would you do to try to become a millionaire, if you aren’t one already? Are you O.K. with bringing your lunch to work everyday? Would you feel comfortable with a $1,000 deductible on your car insurance? My deductible is $500 and I’m at peace with that. Would you buy generic medicine? Or should people simply get better paying jobs or create their own businesses? Talk to me!
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There are many things we can do to reduce the out of cash and some even offer health and environmental benefits as well.
Neighborhood or individual gardening: During WWII, many grew Victory Gardens. These gardens were grown to provide self reliance for homes and communities.
Today, when you consider these gardens would provide nearly all of your vegetables with minimal cost, other than a little back strain, having a garden begins to look more attractive.
Home-grown vegetables equal money in pocket not spent on lunch, better overall health from eating the vegetables and the exercise of gardening which all hopefully add up to fewer costly visits to the doctor…the benefits continue.
In the same spirit, watering the garden could be done using captured rain cutting your water bill.
I think saving is great and I have no problem with bringing my lunch to work but I sincerely believe that it is realllllly (extra l’s for emphasis) difficult to make millions while working for someone else. Branching out, as taxing as it may be, will work out best for the owner in the end. Saving is very important and for those not ready or not willing to branch out, save save save. And $450 a month is not bad by the way, it’s just the 35 years part that gets me..lol
Happy saving everyone.
I think that there are lots of ways to save money – I’m positive that I don’t save enough.
But I do think that opening your own business is not a good way to become rich. Personal businesses are very risky – I think you’re better off trying that if you have a cash “cushion” to protect you if it fails. If you aren’t really excited about running your own business, don’t.
I like the earlier post about victory gardens. I need to look at a windowsill garden for me, to see if I can save any money that way.
Every penny you save is getting back at “the man” that tells you to spend, spend, spend into debt!
Charles-I’ve considered starting a garden. Now you are nudging me even closer in that direction.
PJD-My cousin owns a business. He has the hustle down pat. And he makes more than most in the family.
GLM-I agree with starting a business AND having a cash cushion. Sounds like saving is the way to go. STICK IT TO THE MAN. heheh
We all know there are two ways to become rich: earn more or have few wants
I do both. But #1 is easier for me than cutting my lifestyle
Gas is a killer right now. I have friends who are carpooling and I have friends who are biking to work. I’m trying to stay a little closer to home when it comes to driving trips. I’m “keeping a tight radius,” as my husband says. I’m already a “bring lunch to work” girl but I am trying hard not to throw away food. If I buy it at the supermarket then I should eat it. That’s where I think I waste a lot of money.
I agree with moneymonk. It takes a little bit of all the things you listed. However, it’s much easier to become a millionaire if you earn more. The little things like packing your lunch may save you money here and there but earning power will always trump frugality.
I think doing $450 worth of freelancing in addition to your full time job is the way to go about it. Open up a new savings account (credit unions often offer better interest rates) and sock away your cash there.
And let’s not forget about investing at least $100 every pay period into a ROTH IRA.
And putting in at least what your employer matches into your 401 (k) Plan.
I’m actually trying to be more ambitious and sock $300 into a savings account every pay period. So far, I’ve only done this once.
But I plan to continue the pay-yourself-first approach.
A conversation I had with a friend influenced me. He said he tries to save $1,000 a month. WOW. And he makes less than I do.
Gr%eat suggestions from all. I try to take lunch as much as possible…my biggest saving style has come from the David Bach school of thought in “the automatic millionaire”. I’ve always been a tither @ 10%, so now I’ve begun to also pay myself 10% which I split between depositing into my savings and paying off cc debt.
These are all great ideas. Here are some things I do:
Read circulars and cut coupons (if you wait for deals and buy in bulk, you can save about 2$20-50 per month
Bring lunch to work (this is a big one)
Have your savings automatically deducted from your paycheck (pay yourself first!)
Don’t order drinks at restaurants. (This easily saves me $25 per month)
Use sites like homeexchange.com for vacations
Live within walking distance of work (no car, no gas, no insurance — this is HUGE.)
Buy generic everything (I started doing this last year and I can honestly say my quality of life has not gone down AT ALL.)