1. Save/Invest at least 10% of your income every month (more if possible)
In the book, the millionaire next door Thomas J Stanley shows us that most millionaires, know how to save. And especially for a long time (most of their lives).
Investing at least 10% of your income in an index fund or other mutual fund could build amazing compound interest if you invest for years to come.
2. Become Frugal
In the book the millionaire next door by Thomas J Stanley one of the reasons why millionaires are wealthy is because they aren’t wasteful.
They budget, they don’t pay over the odds for things, and again they save.
Benjamin Franklin knew the importance of frugality, so much so that he practised the virtue of frugality regularly.
Of his 13 virtues ( he practised a different virtue every day) the 5th virtue was frugality.
Here’s how Benjamin Franklin described the virtue – ” Make no expense but to do good to others or yourself; i.e., waste nothing.”
3. Learn Valuable Skills And Keep Learning To Increase Income
The more we know, the more we can do, and the more we can do the more oppurtinies we have to succeed. Becoming a perpetual learner can make us better at life and can help us become more effective individuals in general.
In the book so good they can’t ignore you by Cal Newport, he peddles the idea that the guys and gals with the best jobs are the ones who have learned valuable skills and/or are the best at what they do.
When you’re the best at what you do, you’re in demand. And people will pay you handsomely for your services and time. The individuals who are the best at what they do often tend to have the most freedom as well.
The Bottom Line
If we can consistently save/ invest money in things that will give us a healthy rate of return in the long term. While also being frugal and developing valuable skills. We’ll be getting closer to wealth every single day.
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