Those words will help make you rich. Or rather the actions you take that are described by those words will make you rich. It seems so simple. And yet many don’t do it. I know physicians who put some money in savings or an IRA or other investment vehicle. It is the rare doctor who maximizes all options though. Spend some time with your benefits manager. Fully understand any 401(k), 403(b), Roth 401(k), or 457 option you have at work. I have been able to grow tremendous wealth through these good habits. I make sure I maximize the 457 and 401K from my checks. It comes out before I see it. Also, I have money automatically transferred to a mutual fund company for taxable investing from every check.
I have a note on my calendar each January to remind me to write checks up to the annual limits for our Roth IRAs. We also fund the 529 accounts then to get our state’s full tax credit. It all has to come out before the take home pay though. Even though we tend to be frugal, whatever goes into our checking account eventually gets spent. Taking the money out before then creates a feeling of relative scarcity that tricks us into saving a lot more than we otherwise would.
Another useful habit is to invest any bonus money or money from a raise. Since you didn’t expect it and were not living on it you will not even miss it. The same goes for tax refunds, inheritances, winnings, found money etc. Since it was unexpected you will not miss it by investing it. If you splurge on a treat that may be ok for some of it but if you blow it all the pleasure won’t last long.
If you don’t have money coming out of all your gross paychecks, then call your payroll person and your mutual fund company tomorrow and get it all set up automatically. You won’t regret it!