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

by Nick Maggiulli

what you should focus on depends on your financial situation. If you don’t have much money invested, then you should focus on increasing your savings (and investing it). However, if you already have a sizable portfolio, then you should spend more time thinking about the details of your investment plan.

More simply: saving is for the poor and investing is for the rich.

If your expected savings are higher, then you need to focus more on saving money and adding to your investments. However, if your expected investment growth is higher, then spend more time thinking about how to invest what you already have. If the numbers are close to each other, then you should spend time on both.

When we have the ability to save more, we should save more—and when we don’t, we should save less. We shouldn’t use static, unchanging rules because our finances are rarely static and unchanging.

The most consistent way to get rich is to grow your income and invest in income-producing assets.

Ultimately, your money should be used as a tool to create the life that you want. That’s the point.

Lifestyle creep is when someone increases their spending after experiencing an increase in income or as a way of keeping up with their peers.

Once you spend more than 50% of your future raises, then you start delaying your retirement.

“The best time to start was yesterday. The next best time is today.”