“There are only three known ways to accumulate wealth: #1, living below your means; #2, expanding your means; or #3, following both #1 and #2."
-Rich Kids, by Tom Corley
Don't spend more than 25 percent of your monthly net pay on housing
It doesn't matter if you own or rent. Stick to this 25 percent rule.
Don't spend more than 10 percent of your monthly net pay on entertainment
This includes movies, restaurants, bars, etc.
Don’t spend more than 5 percent of your monthly net pay on auto loans, and never lease.
Leasing is a poverty habit. Buy your cars and take good care of them.
Avoid credit card debt
If you are doing this, it means you are living beyond your means and you need to cut back on something.
Invest your savings prudently
Never gamble your savings on get-rich-quick schemes. There’s no such thing. The power of compounding interest can grow your savings and make you wealthy.
Max out matching contributions to the company retirement plan
Know what you spend every month
Create a monthly budget and track what you spend.