15 money-saving habits self-made millionaires have in common

By setting aside a portion of their income every day, week or month—in other words, “paying yourself first”—self-made millionaires take one of the most important steps towards building wealth, according to Bach. “You’re going to work 90,000 hours over your lifetime; you should keep at least an hour a day of the income,” he says.

He recommends setting aside an hour’s worth of your income each day and then saving and investing it—preferably automatically to begin earning some passive income and reach that high-roller status.

Speaking of passive income, self-made millionaires save even more money by investing their savings in an account that creates passive income through accumulated interest, such as a high-yield savings or investment account. There are several types of accounts to consider, and ultimately, the one you choose will depend on your financial goals.

“No strategy is a one-size-fits-all approach, since everyone’s financial situation is unique and different,” Palmer says. She recommends speaking with a financial advisor to learn the right strategy for you and to avoid the most common retirement-planning mistakes.

Credit cards can sabotage even the best of savers, according to Corley. “Credit card use can easily get out of control,” he says. “If you rely on credit cards to pay for ordinary living expenses, that means you are living beyond your means.”

Not only are there high interest rates on credit card debt, but paying with plastic could also trick you into spending more money. In a study published in the journal Marketing Letters, MIT researchers found that shoppers spend up to 100% more when paying with a credit card—and were even willing to pay twice as much for an item as those who paid in cash.

The 100-day credit card money-saving challenge could help you break bad spending habits, according to Corley. Essentially, the goal is to go 100 days without using your credit cards for purchases. The result? “Having to use cash or your ATM card forces spending awareness and restricts how much you can spend,” Corley says.

What do you want your life to look like in five, 10 or 20 years? Self-made millionaires always know their answer to this question, Corley says. He calls this dream-setting or creating a clear vision of your ideal future life. From there, you should set and pursue financial goals that will help you accomplish those dreams. “Dream-setting is a springboard for creating the goals you’ll need in order to help you get to your destination,” he says.

For example, if you want to earn a master’s degree so you can get a job with a higher salary, you can set goals like setting aside two hours every day to study for the graduate record exam (GRE). “Goals are the transportation system to your ideal future life,” Corley says. “Once you have a clear vision of your destination, the goals you’ll need to achieve will magically manifest themselves out of thin air.”

There’s no question that saving and investing your money is key to accumulating wealth fast. But according to Corley, the first (and most important!) money-saving habit that self-made millionaires practice is investing in themselves—whether that means reading for at least 30 minutes a day, listening to podcasts during a long commute or seeking out career mentors.

Exactly how should you invest in yourself? The self-made millionaires in Corley’s research focused their daily reading on content that was directly related to the dreams and goals they were pursuing.

Maybe it sounds cliche, but it’s the type of mindset that will keep you above water. “No matter what happens, no matter how many times you fail, as long as you get up and try again, you haven’t lost,” says Bach. So commit to the sort of money-saving tricks a self-made millionaire would follow, but give yourself a break if you fall off the wagon. Dust yourself off and recommit to your saving strategies.

Need more money-saving ideas? These almost-effortless ways to save money are a great place to start.

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Source: rd.com