You may not need a lot of wealth to accomplish that goal. There isn t a millionaire on the planet who got that way by spending all the money they made. That means living below your means. It doesn t have to be far below your means, say Certified Financial Planner practitioners, but it does mean not spending every penny you earn. Take housing, for example.
People often buy the maximum amount of home they can afford.
One trick is to design and follow a spending plan, or budget, so your money goes exactly where you want it. Another key is to spend wisely. Research has found that Americans waste 20 to 30 percent of their money by not getting the most for their dollars through such simple steps as using coupons, comparative shopping for the best buys from food to auto insurance, and a zillion other money-saving tricks. Yet too many Americans saddle themselves with needless debts. Its little wonder bankruptcies are near an all-time high despite a booming economy.