In many ways, it may feel easier to worship a billionaire like Jeff Bezos than be appreciative of how you got where you are, whether you’re middle class, upper class or somewhere else. However, it might be more practical to learn about the advice that helped people with typical backgrounds and average salaries achieve stability and security in America’s ever-shrinking middle class.
Find Out: Suze Orman’s Top Tip for Building Wealth Is a ‘Very Easy One’
For You: These Cars May Seem Expensive, but They Rarely Need Repairs
GOBankingRates spoke with a business owner who went from financially faltering to fiscally fabulous in just a few years after building her money mindset around a simple yet transformative quartet of financial wisdom that she received when times were tough.
There Isn’t 1 Secret To Achieving Financial Security — It’s Closer to 4 Secrets
Lisa Rehurek is the CEO and founder of The RFP Success Company, which specializes in consulting, training and support services for medium-sized service-based companies bidding on state, local and education (SLED) requests for proposals (RFPs).
She is, by any reasonable standard, comfortably in the middle class — and she credits her financial security to a four-part piece of money guidance that she had the good sense to follow.
“The best financial advice I ever received as a middle-class person was to always live below my means, automate savings by putting 15% of every paycheck straight into investments and savings, understand needs from wants and cut back on frivolous spending to make money for bigger, more meaningful goals,” Rehurek told GOBankingRates.
Up Next: I’m a Self-Made Millionaire: 6 Steps I Took To Become Rich on an Average Salary
Sound Advice Turns a Halting Start Into a Trot — Then a Gallop
Like many twenty-somethings, Rehurek hadn’t quite yet found her financial or professional footing when she encountered the financial wisdom that would change her life and career.
“I was living paycheck to paycheck and under constant stress about money in my mid-20s, with $5,000 in credit card debt,” said Rehurek. “I paid off my debt and started saving for emergencies within a year of putting the financial advice into practice. I consistently invested 15% of my income and had a fully funded emergency fund by the third year.”
She continued, “My financial peace of mind had improved the most since I stopped worrying about unforeseen costs. As my net worth increased yearly, I was able to think about long-term objectives like home ownership. In contrast to a decade ago, I feel much better off now that I’m in my late ’30s and on pace for a nice retirement.”
True Wisdom Is Often Free and Found Close to Home
There is no shortage of financial gurus who promise to reveal the secrets to buying houses with no money, becoming a millionaire by working for 30 minutes a day or eliminating a lifetime of debt in six months — but, ahem, only after you spend hundreds or thousands of dollars on subscriptions, seminars and training sessions.
Rehurek found enlightenment from sources that were far less exotic — and much cheaper.
“I gained financial advice from my parents and personal finance books, with ‘Your Money or Your Life’ being particularly impactful,” said Rehurek, referring to the 25-year cult favorite from co-authors Joe Dominguez and Vicki Robin.
The Best Financial Advice Scales Up for Life
Static financial advice that applied only to Rehurek’s specific station in life at the time she learned it wouldn’t have been much use beyond that chapter in her journey. But she received timeless wisdom that scaled up as she progressed in her life and career.
“As my income increased, I also started investing in stocks and bonds,” she said. “I avoided lifestyle inflation and instead increased my savings rate. I aggressively paid off high-interest debt, especially credit cards. Finally, I built an emergency fund covering three to six months of expenses, providing financial security and peace of mind.”
Rehurek said implementing the helpful advice was challenging initially, but she started small by automatically saving 5% of her paycheck and gradually increasing her contributions. It wasn’t always easy.
“I made tough choices like cutting back on dining out and choosing to boost my 401(k) instead of upgrading my car when I got a raise,” she said. “Building an emergency fund took about two years of consistent effort, but it’s proven invaluable. While I’m not perfect and still occasionally splurge, these habits have become the foundation of my financial life. Overall, following this advice has given me a greater sense of financial security and control.”
More From GOBankingRates
- 6 Costco Products That Have the Most Customer Complaints
- Mark Cuban Warns of 'Red Rural Recession' -- 4 States That Could Get Hit Hard
- 7 Luxury SUVs That Will Become Affordable in 2025
- 10 Cars That Outlast the Average Vehicle
This article originally appeared on GOBankingRates.com: I’m Comfortably Middle Class: Here’s the Best Money Advice I Ever Took
