Did you know it’s possible to become a millionaire on a minimum wage? It seems unlikely but it’s true and it really just comes down to your ability to save and invest. However this is of course easier said than done therefore, let me now walk you through the three steps you can take to ensure that bright financial future of yours!
Step #1: Embrace frugality
The first secret to growing wealth on a minimum wage is to embrace frugality. Although many people often misinterpret frugality, it simply means being intentional about how you manage and spend money. One of the reasons why many people are poor today is not because they don’t make enough money but because they don’t know how to keep it. Frugality helps you differentiate your needs from your wants so that you can avoid spending money on things that are not necessary. Another reason why you need to embrace frugality is that it is one of the fastest ways to achieve financial independence and even retire early.
The first step to embrace frugality is to make up your mind that you want to change your financial status. Once you’ve made up your mind, it becomes easier to adjust your lifestyle to reach your financial goals. Next, you need to have a budget that will help you understand how much you earn and spend. Unfortunately, according to a 2014 survey, 65% of adults don’t even have a budget so there is still a ways go to until the majority of adults get serious about heir finances. Luckily, creating and adhering to a budget is easier than you may expect and can offer a plethora of benefits. A budget will help you realize that you might be spending too much money on a particular expense that you can do without. For example, by saving $3 every day from buying coffee, you will have an extra $1,000 at the end of the year to do whatever you want.
Another way to embrace frugality is by planning your meals and cooking in bulk. Food is one of the three major expenses and finding a way to reduce its cost can help you save a significant amount of money. What I often recommend is that you plan your meals and shop deals where possible. If you fail to plan your meals, you may go to the grocery store and get food items that you don’t need which later go right into the trash.