Put away the credit card
Credit cards can sabotage even the best of savers, according to Dallas Mavericks owner Mark Cuban. “Credit cards are the worst investment that you can make,” the billionaire told Business Insider. “The money I save on interest by not having debt is better than any return I could possibly get by investing that money in the stock market.” On top of high-interest rates on credit card debt, paying with plastic could also trick you into spending more money. In a study published in the journal Marketing Letters, MIT researchers found that shoppers spend up to 100 percent more when paying with a credit card—and were even willing to pay twice as much for an item as those who paid in cash. Here’s what three different billionaires have to say about the most important life skill.
Track your progress
Keeping tabs on your progress can both boost your motivation and hold you accountable as you save. Don’t just take our word for it, though; Microsoft founder Bill Gates shared this tip in his 2013 annual letter for the Bill and Melinda Gates Foundation. “In the past year I have been struck again and again by how important measurement is to improve the human condition,” he wrote. “You can achieve amazing progress if you set a clear goal and find a measure that will drive progress toward that goal.” Whether you use a budget app or a simple paper list, tracking your savings can bring you that much closer to achieving your dream nest egg.