Since I am officially in my 40’s now, I’ve been thinking about money, wealth and retirement a whole lot more – like how to keep more of it.
I’ve been reading this book titled “The Millionaire Next Door: The Surprising Secrets of America’s Wealthy” and while reading it has given me regrets about my own spending habits for the first 40 years of my life, I still have about 40 to go that I can go about differently.
The main takeaway from this book is: no matter what your income is, you must live below your means.
The book gives a lot of examples of people who supposedly look wealthy based on what they buy – house, luxury car, spending habits, etc. versus the people who don’t buy very often but have a high net worth.
So even if you get a pay raise from your job, do not increase your consumption. Instead put that money away; pay down your credit card debts, create your emergency fund, then learn how to invest.
I feel frustrated that I spent my first 40 years of my life not knowing this. My parents did the best they could to educate me on finances but it just wasn’t enough.
So instead of regretting the past, I’m going to attempt to be frugal and more conscious of where my money goes from here on out. It would be nice to have at least half a million for retirement. We shall see, as I have so much to learn still.