In spite of stereotypes of “old money” hoarding wealth in the U.S., only 21% of millionaires in the U.S. inherited money to achieve their status. Of those, only 3% inherited $1 million or more and 16% inherited less than $100,000, according to Ramsey Solutions’ National Study of Millionaires.
The 2022 Survey of Consumer Finances revealed that the average American household has a net worth exceeding $1 million, indicating that this level of income and savings isn’t quite the accomplishment it used to be in light of inflation.
Becoming a millionaire remains a notable accomplishment, but the real secret to wealth is holding on to that money.
Rachel Rodgers — founder and CEO of Hello Seven as well as author of the book “We Should All Be Millionaires” — shared three aspects of her life where she remains incredibly frugal with CNBC.
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Recent trends point toward spending money on experiences, not items. But that doesn’t mean you have to bust your budget planning the perfect getaway, according to Rodgers. “I’ve learned that a higher price tag doesn’t always mean more fun,” she wrote.
To save money, steer clear of tourist traps. Look for off-the-beaten path vacation rentals and places to eat and play like the locals.
It’s important to look your best, with well-tailored outfits, if you’re attending a business meeting or networking event. The adage of dressing for the job you want still rings true. Rodgers noted, “When I’m in a business setting, I want to look and feel like a million bucks, and will shop accordingly.”
But on her days off, she cuddles up in Target sweats and binges Netflix. Pricier clothes might last longer, which is important in a business setting. Just make sure you’re paying extra for the quality, not the brand name.
For everyday wear, jeans or sweats and T-shirts only get more comfortable as they get older and well-worn.
“To me, frugality is about being intentional, starting with how I spend my time,” Rodgers wrote. Before saying yes to a meeting, invitation, or any other commitment, Rodgers wrote that she evaluates it based on the money, energy, time, or joy it will bring her.
This decision led her to declining 99% of requests for her time, making it that much more meaningful when she says, “Yes.”
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This article originally appeared on GOBankingRates.com: I’m a Multimillionaire — 3 Ways I Maintain a Frugal Lifestyle To Stay That Way