Many people dream of making a six-figure income. And why wouldn’t they? But what about saving six-figures and achieving a net worth of $100,000? After all, it’s not what you earn but what you keep that matters.

 Pay yourself first

Pay yourself first. Pay yourself first. Pay yourself first. This is one of the most important steps to building wealth. It does not matter if your goal is to save $1,000, $10,000 or $10 million.

What is paying yourself first? Simply put, its sending money to your savings, retirement or investment accounts before you pay all your bills. This guarantees you will save money and create wealth.

 Live like a college student for as long as possible

‘Live like a college student for as long as possible’ was some of the best advice I ever received.

No, I am not talking about a keg party on a Tuesday night, taking beer bongs or pulling a Van Wilder. Some habits should fade away after graduation.


 Keep your housing expense minimal


Housing expenses eat up a third of the average monthly budget. In expensive coastal cities, this number sometimes exceeds 50%. Paying too much in rent will keep you in the poor house. Do not overpay for housing. You can do this by living with a roommate or roommates, renting a smaller place or moving to a more affordable neighborhood.

 Drive your old car into the ground


A new car serves as the first major purchase for many adults. This usually happens after graduating college or landing that first ‘big-boy’ or ‘big-girl’ job.  Society views this as a right of passage and a status symbol. My car is 19 years old and has over 200,000 miles. Not having a car payment saves me $6,000 a year. This is money in the bank.  Better yet, this is money I can invest and grow.

 Avoid credit card debt

Saving and investing regularly will do wonders for your ability to create wealth. Having credit card debt will unravel all of your hard work. Compound interest can work for you or against you. When you invest, your money compounds and grows exponentially. Likewise, when you have credit card debt, your debt compounds and grows exponentially.