Check out the latest edition of Millionaire in the Making, it features a couple with a combined income of $86,000 who managed to save $100,000 in their 401(k) and $50,000 in IRAs. So, how do they do it?
Make It Automatic – Amy uses auto-deductions to put $10,000 a year away in her 401(k), taking advantage of the $3,000 in matching funds her employer gives her.
Stay Aggressive If You Can – The bulk of her savings are in stock mutual funds, taking advantage of her relative youth by investing in higher risk, higher return investments.
Stay Thrifty – “The couple keeps their budget balanced with real dedication to thriftiness ? Amy has declared Jesse ?a professional scrounger.? He?s learned to make his own shirts after buying the fabric, and she says the couple tries to prolong the life of all their belongings.”
So, make it automatic, be aggressive if you’re young, and stay thrifty.