Most of us occasionally — or even frequently — dream of getting rich. But “super savers” take the next step, turning such visions into reality.
Who are these folks? Principal Financial Group defines super savers as those who do one of the following:
- Save at least 90% of the maximum allowed in retirement plans each year
- Defer at least 15% of their salary into retirement accounts
Super savers are the famed “millionaires next door” who quietly and consistently build their nest eggs year after year. One day, they wake up rich.
While there is no single characteristic that defines every super saver, they tend to share some key traits — especially in terms of making sacrifices today so they can enjoy a brighter and wealthier tomorrow, according to Principal.
Following are some sacrifices super savers commonly make on the road to getting rich, according to a 2021 Principal survey of more than 1,000 super savers.
Owning a modest home
Percentage of super savers who do this: 35%
It appears that today’s super savers have learned an important lesson from the Oracle of Omaha: You don’t have to look like a millionaire to actually be one.
Principal says 35% of super savers are only too happy to settle for modest digs. As Money Talks News founder Stacy Johnson — a millionaire who lives in a house that is worth about one-third of what he could afford — says:
“Diverting your investable cash into things like cars, clothing, vacations and houses you can’t afford will make you look rich now, but prevent you from actually becoming rich later.”
For more, check out “The 10 Golden Rules of Becoming a Millionaire.”
Doing household projects and chores themselves
Percentage of super savers who do this: 36%
Dreams of living like a millionaire often feature a cast of characters that includes a maid, a butler, a cook and maybe a cat named Fifi. But today’s super savers understand that becoming rich typically requires a willingness to get your hands a little dirty.
Doing your own household projects and chores can save you a lot of cash, which is likely why 36% of super savers take such matters into their own hands. The money they save can be earmarked for better purposes, such as growing a retirement nest egg.
For more on saving around the house, read “20 Household Items You Can Make Yourself for a Lot Less.”
Not traveling as much as they want
Percentage of super savers who do this: 38%
Critics of the super-saver lifestyle charge that too much penny-pinching robs life of its joy. And there is a grain of truth in this criticism.
In fact, 38% of super savers admit they don’t travel as much as they would prefer. But they likely wouldn’t have it any other way.
After all, once they accumulate $1 million or $2 million, those with a long unscratched itch to travel have more than enough money to make up for lost time.
Driving older vehicles
Percentage of super savers who do this: 44%
Few things can decimate the potential for wealth faster than pouring gobs of money into a shiny object that starts depreciating the moment you leave the dealership parking lot.
At Money Talks News, we offer a lot of tips about how to grow rich. And one of our iron-clad rules is to never buy a brand-new car. A gently or even thoroughly used vehicle is almost always a better bet.