”Same House, Same Spouse, Same Car” according to some it’s the best financial advice they ever received. It certainly sounds boring, yet, this conservative way of life may well be the key towards a wealthy one.
According to a study by Thomas C. Coley, living below your means may actually be your best bet for achieving riches. This may sound easy enough, yet, it’s something few are able to do, as most of us are quickly caught out by Parkinson’s Law. This law suggests that most people promptly up their lifestyle (plus a little) as their pay-check increases.
Corley found in his Rich Habits study, that there are basically two primary ways towards getting rich. It turned out that the vast majority, 83% of self made millionaires, chose path 2. The other group that pursued their dreams was smaller but also, on average, $US 2.5m wealthier. They also got there 14 years earlier.
- Pursuing your dreams. This comes with great risk and sacrifice and is not for everyone. This type of millionaire often sold something. Think of Mark Zuckerberg selling advertising space and Elon Musk selling Tesla’s.
- Living below your means. Save money and invest this wisely. With enough time you will become financially independent or even wealthy as this savings schedule shows.
