A simple change of mindset has made it 10 times easier for me to save money
One such habit, from "Mr. Money Mustache" - who saved two-thirds of his take-home pay to retire comfortably at age 30 - particularly resonated with me: He thinks about money as something to invest rather than something to spend.
"I like the idea of keeping all money invested," he explained to Farnoosh Torabi on her podcast, "So Money."
"So if I run into a surplus sometime, I don't think of something to buy with it, I think, 'OK, I better get rid of this money and put it to work again.' So, I sweep it out of the bank account and into regular index funds."
It's a very subtle, yet effective, mindset shift I've gradually adopted since hearing about it.
It means that any raise, bonus, or birthday check goes straight towards my Roth IRA, savings goals, or other investments. To resist the temptation to spend any surplus money I receive, I'll deposit it right away, so I never even see it.
Not only am I not spending this money, but more significantly, I'm putting it to work and allowing it to compound over time.
When it comes to compound interest, just a little bit can go a long way - assuming a 5% return, saving $19 a day starting at age 25 would make you a millionaire at age 65, according to calculations by Business Insider's Andy Kiersz based on a chart by David Bach.
While it's difficult to quantify exactly how much money I'll save thanks to Mr. Money Mustache's habit, it's bound to add up over time.