- Save 10 to 20% of our income. This created a sustainable mentality and habit of saving. In addition, it helped us to consistently live below our means since we only used 80 to 90% of our take home pay. Finally, saving kept us from going into debt, other than a home mortgage, which we paid off recently.
- Invest. Since my company retirement savings was aggressively invested, i.e. only in our company stock, we invested our own funds very conservatively. In our own accounts, we put about 70 to 80% in CDs, bonds, and other fixed income and the rest in individual stocks and ETFs.
- Repeat often. We would save and invest consistently with every paycheck. In addition, we tried to put most, if not all, of raises, bonuses and other adjustments into savings if possible. This helped us avoid lifestyle creep, which could happen easily in the former times of larger raises and bonuses.
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This is not financial, saving or retirement advice. Please consult a professional advisor.
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