How to Make a Million Dollars in Ten Years, Part 2: Saving Money

Here's part 2 in our quest to grow our net worth by a million dollars in ten years as guided by Smart Money. Today, we're focusing on saving money, which Smart Money says will net us $50,000 in net worth over ten years. Their key thoughts:

According to the Bureau of Labor Statistics, a household in our hypothetical couple's income bracket spends about $75,000 a year on everything from the mortgage to mochachinos. Cutting that by less than 8% would generate an extra $50,000 to invest over the course of the decade.

The piece goes on to offer some ideas on how to save money. I have posted on all of them before and have tons of additional money saving tips listed here at Free Money Finance. To see them, simply visit my saving money category.

Personally, I think Smart Money has VASTLY underestimated the amount saving money can save a couple over ten years. But, I'm willing to go along with the estimate to humor them. Besides, I think they'll be offering other suggestions later that require more of a commitment to saving money, so the added benefits will be in those numbers instead of here.

In summary, after two days and two savings tips, we're at $134,000 in our quest for $1 million in added net worth in ten years. Not bad for two days' worth. ;-)

For reference, here's the link to part 1, Staying/Becoming Healthy Helps You Spend Less and Earn More.

Click here to read part 3 of this series.

Comments

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