2. Save 40% to 50% of your earnings
Growing your money isn’t just about keeping expenses low, it’s also about making a plan to save what you have left over.
After my 401(k), taxes and other deductions, I was earning somewhere between $1,350 and $1,400 per bi-weekly paycheck during my first year of work. I tried to save around $500 to $700 of every paycheck as well as all of my yearly bonus, which was about $1,500. Not much, but still something! I also saved the bulk of my tax returns each year.
Another trick that helped: Each time I got a promotion, I continued to live on my old budget so I could save the full amount of my raise. (By the end of my third year at work, my salary was about $74,000 after taxes.)
As a result, I averaged about $18,000 each year in cash savings. Three years later, I had saved well over $50,000 from my full-time job.