Just Keep Buying: Proven ways to save money and build your wealth

by Nick Maggiulli

It’s not about when to buy, how much to buy, or what to buy—just to keep buying.

Think of it like a snowball rolling down a hill.

the biggest determinant of an individual’s savings rate is the level of their income.

earners in the bottom 20% saved 1% of their income annually while earners in the top 20% saved 24% of their income annually.

the top 5% of earners saved 37% annually

while those in the top 1% saved 51% of their income each year.4

savings rules like “save 20% of your income” are so misguided.

I experienced this personally after seeing my savings rate drop from 40% while living in Boston to only 4% during my first year in NYC. My savings rate plummeted because I changed careers and stopped living with roommates when I moved to New York.