I’m a Self-Made Millionaire: These Are the 6 Money-Saving Rules I Broke To Get Rich
Written by
Yaël Bizouati-Kennedy
Edited by
Amber Barkley
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Self-made millionaires have a few things in common: patience, discipline, being methodical, having great ideas and sometimes turning them into great businesses. And some of them also broke some money savings rules to achieve this financial milestone.
GOBankingRates spoke to a few of them who explained how breaking these money-saving rules helped them build their wealth.
Don’t Fixate On Budgeting
Joe Camberato, CEO of NationalBusinessCapital, became a self-made millionaire in his 30s thanks to hard work as an entrepreneur founding a fintech lending platform, as well as numerous other companies and investments.
According to him, while budgeting may be necessary, it also can be a bit of a double-edged sword.
“Sure, it’s crucial to have some form of budgeting discipline to understand your spending habits, and to have a financial roadmap,” said Camberato. “But people often get overly fixated on where they can pinch pennies rather than looking at the bigger picture: How they can increase their income.”
Instead, Find Ways To Increase Your Revenue Stream
Camberato explained that his personal strategy has always been centered on doing more, working harder and finding ways to earn more money.
“By shifting my focus to boosting my earnings, I was able to accelerate my savings significantly,” he said. “Don’t get me wrong, if there’s an opportunity to save money, I’m all for it. But my core emphasis has always been on exploring avenues to earn more.”
Put Your Money To Work
In terms of saving money, for Camberato, real wealth-building happens when you invest your money to make it grow.
“Wealthy people understand that the key to increasing their wealth lies in putting their money to work,” he said. “While your primary career is crucial for earning income, you should explore side hustles to supplement your savings. And once you’ve saved up enough, invest that money in opportunities that generate more income, such as real estate, stocks, or interest-bearing assets.”
Start Early and Don’t Be Afraid Of Sacrificing
It’s worth mentioning that the earlier you start this journey, the better, said Camberato who began working, saving, and investing while he was still in high school.
“This early start not only propelled me ahead of my peers, but it also granted me opportunities and financial flexibility that others my age didn’t have,” he said. “Of course, it required sacrifices, patience and discipline. It’s not about seeking overnight success; it’s about consistently following this path over an extended period.”
Invest In Yourself
Jeff Rose, another self-made millionaire, said that the financial planning firm he founded, Alliance Wealth Management, significantly contributed to his financial success. He grew that business for 16 years and then sold it back in 2019.
Rose, a Certified Financial Planner (CFP) and founder of Good Financial Cents, said that his route–despite his financial struggles–was to choose to invest in himself by joining the Army National Guard and later co-founding an investment firm.
“I also founded my own wealth management firm as my financial blog, GoodFinancialCents.com, grew in popularity,” said Rose.
According to him, this underscores a crucial lesson: Investing in oneself, whether through education, career moves, or starting a business, can be a powerful strategy to build wealth, even if it means taking financial risks or breaking traditional money-saving rules.
Maxing Out a Roth IRA Over 401(k) Match
“While I have a lot of respect for Dave Ramsey, there’s a particular investment strategy where we part ways, and it’s not just Dave–many financial experts recommend the same,” said Rose.
He explained that while the common advice is to invest in your 401(k) up to the company match, then pivot to maxing out your Roth IRA, and finally, return to contributing to your 401(k)–that is not what he did.
“My approach is slightly different: I advocate for maxing out your Roth IRA first to lock in that tax-free growth, and then go back to beefing up your 401(k),” said Rose. “Understanding where your money is being invested is crucial, and that’s a significant reason why I prioritize the Roth IRA.”
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