Savings Tricks From Regular People Who Are Sitting on Millions
Savings Tricks From Regular People Who Are Sitting on Millions
Saving $1 million is possible with good financial habits.
By Joel Anderson
One million dollars is a major milestone for almost anyone. It's the sort of nest egg that can fund a generous lifestyle in retirement or even build your dream home. However, for many, it's also a pipe dream. Understanding how to make a million dollars is a question for the wealthy, not the average American.
However, in many ways, that's a dangerous misconception. In fact, building up your savings to $1 million certainly isn't easy, but a lottery ticket or huge business deals aren't the only paths available. For plenty of people, smart budgeting, strategic investments and just good old-fashioned horse sense can combine to create the sort of habits that will put $1 million well within reach, even if you're living a relatively modest life.
If that seems implausible to you, it shouldn't -- especially after reading these real stories from a few normal people who have hit that $1 million goal. You'll probably notice an absence of lofty advice about sparking a huge windfall or a series of get-rich-quick schemes.
Instead, these people stress that the answer to the question of how to save a million dollars involves core financial habits, which are as valuable when you have $1 to your name as they are for those who have $1 million.
Carl Jensen, Blogger at 1500 Days to Freedom
Carl Jensen, the writer behind the blog 1500 Days to Freedom, has a net worth that is the source of considerable consternation for many of his neighbors who note his modest home and thrifty ways. However, Jensen puts his net worth at about $2.3 million, including approximately $1.8 million in investments.
"The best story about our situation is that a neighbor once told another neighbor that she thought we were poor because she saw me working on my car," Jensen said.
So how has Jensen managed to save that much money? He Made a Conscious Choice To Downsize
One big decision that Jensen cites as playing a crucial role was opting for a more modest home despite that it was significantly less impressive than where he had been living.
"We sold our $400,000, 4,500-square-foot home and moved to a Fannie Mae foreclosure that set us back $176,000," said Jensen. "Our family thought we were a bit crazy. The first home had four bedrooms and four bathrooms and was beautiful. The foreclosure had two bedrooms and one bathroom and was neglected and infested with ants. However, we went from a $250,000 mortgage and $3,500 in property taxes to a $136,000 mortgage and under $1,500 in taxes. We took our time fixing up the foreclosure and in the meantime invested all of the extra money."
Jensen also found that sticking with his 2003 Honda Element has been a major factor. It might have 200,000 miles on it, but it's completely paid off.
He Built Good Habits Into a Thrifty Lifestyle
To continue reading, please go to the original article here: