The average American saves below 5 percent of what he or she earns, according to U.S. Department of Commerce. In other words, most of us work about 22 minutes a day for ourselves.
Now self-made millionaire and bestselling author David Bach says there’s “one, proven, easy way” to save more money and get rich: “Pay yourself first.”
This means that the first person you should pay is you, Bach suggests.
“What most people do when they earn a dollar is pay everyone else first. They pay the landlord, the credit card company, the telephone company, the government …At the end of the day, they pay themselves whatever is left over” he explains, cited by CNBC.
His solution is to save the equivalent of one hour’s worth of income each day. And put the money to work in a tax-advantaged retirement account.
Another advise from David Bach is to increase your savings by having your contributions automatically taken out of your paycheck and sent straight to your retirement account.