It is true for a billionaire hedge fund manager. SPEND LESS THAN YOU EARN! They found financial freedom at a very early age and people hate them for doing it.
Simple things are hard. The easiest way to start on the road to financial freedom is to make a promise to pay yourself first. Put a predetermined percentage of your take home pay in a specified account that is at least a little difficult to access. Do it with an automatic debit. Hey, chances are you pay at least some of your bills by auto-debit, why not provide the same service for yourself. Just about all the authors recommend placing 10% of any funds that cross your palm in a savings account or an investment portfolio depending on your particular situation. If you view 10% as an insurmountable mountain, start with 1% and increase it by 1% every time you get a raise or a change in your life, like paying off your credit cards, gives you a greater amount of free cash. In the last years before I retired, I was placing 14% of my pretax income into my version of a 401(k) and most months investing as much as 30% of my take home pay. Hey, it took me forty years to get there. It wasn’t easy. I made mistakes along the road of life, but I made it. You can too. And while I am at it, let me remind you of the second big money secret, avoid debt like the plague. From the Devil’s Dictionary by Ambrose Bierce Debt, n. An ingenious substitute for the chain and whip of the slavedriver. Ambrose Bierce