Time-Tested Financial Habits, part 3 of 5

From Motley Fool comes this —

3. Avoid lifestyle inflation

Millionaires recognize the tendency to spend more as they earn more. Instead of looking to buy a bigger home or the latest car model, millionaires can be relatively frugal. They may not be concerned with keeping up with the Joneses. As a result, they often avoid unnecessary debt and wasted money that could otherwise be used for savings.

To help ensure that saving and investing keep pace with income, consider switching from saving a specific dollar amount to a certain percentage of income.

For example, if you commit to saving 20% of your income rather than a specific amount, your savings should rise with your income.