This type of behavior is well-documented in “The Millionaire Next Door”, which finds that most millionaires are coupon-clipping miserly folk that amass money by (surprise) not spending it. They have paid-off cars, worn-down shoes, and live in modest neighborhoods. Warren Buffett is the most famous example.

Think about this: If you save $100k a year, with 0% interest, in 10 years you will be a millionaire. Add a modest interest rate (say 4%) and your riches get much larger. Turn the time period into 20 or 30 years, and you’re set.

Think of your own income. How much do you and your spouse make? Many people I know make $150k+ as a family. But they squander their money on fancy cars, new TV’s, the latest clothes, etc. It takes hard work and humility to live below your means, especially when all your peers have new BMW’s.

I’m NOT claiming to have it “all figured out”, but I’m 34 and have $500k in the bank. I make > $200k a year, but we live in a $2k/month rental, have cars that are paid off, and as a result save >$8k a month.

You have two choices: increase your earnings, or decrease your expenditures.