Early retirees who retire with a seven-figure net worth are well versed in the right ways to build wealth and save money.We've rounded up some of the best money-saving tips that early retirees have shared with us.They said some money is better than no moneyand that it's important to have a net-worth target goal.They also said don't forget to invest in yourself, because being rich has little to do with the size of your paycheck.If anyone knows a thing or two about saving money, it's those who earned and saved enough money to retire early.I've spoken with, and learned from, many early retirees, several of whom retired millionaires, and I'm always impressed with not just their insightful advice on building wealth but with their perspective on money as a whole.The best part is that their wisdom doesn't just apply to other hopeful early retirees.Even those saving for a "normal" retirement or a different long-term goal can take their words to the bank.From having a net-worth target goal and saving 20% of your income to investing and letting your money compound, here's what they had to say.SEE ALSO:5 people explain how their life unexpectedly changed after retiring earlyDON'T MISS:The 7 best lessons successful people taught us about money in 2018Focus on your spending, not your earnings.Chris Reining, who retired at 37 as a self-made millionaire, finds a difference between "living rich" and "being rich."He posted a Tweet earlier this year that read: "Living rich: Make $500k, spend $500k, don't have two nickels to rub together. Being rich: Make $100k, spend $40k, have $1 million in the bank."Instead of measuring wealth as figures or material means, he defines rich from a behavioral standpoint."When people say they want to be rich, what they're saying is they want to spend like a rich person. They're focusing on earning a big paycheck," Reining told me. "But that's not the definition of being rich. The definition of being rich is having assets generating income that exceed your standard of living."He continued: "Someone earning $50,000 a year while they sleep from dividends and investment gains and spending $40,000 a yearthey're rich. I have friends earning half a million, and with private schools, second homes, and expensive lifestyles, they have nothing in their bank accountthey're poor. That's why 'rich' has little to do with how big the paycheck is."Getting rich, and staying rich, is overwhelmingly a game of living below your means. If you can do that you'll enjoy a freedom that people living rich will never experience."Put in the hard work and sacrifice to build your first small nest egg.In a post she wrote for Business Insider, JP Livingston, who retired at 28 with a nest egg of $2 million and runs the blog The Money Habit, called the difference between having no money and a little money "staggering.""More money means more options open up to you," she wrote. "Better options. The more money you have means you accelerate faster and faster toward massive wealth. Money begets money, so it's worth the hard work and sacrifice to build that first small nest egg."For example, she used her accumulated wealth to get a mortgage rate discount as a private client of major banks (a mortgage discount is a benefit of being a private client). To qualify, she had to transfer some buy-and-hold stocks into an account stewarded by the bank.Those accumulated assets allowed her to get a discount worth $300,000 over the life of the loan and take advantage of brokerage sign-up bonuses."Do everything you can to accumulate that first $10,000, $20,000, or $100,000," she wrote. "It will create a snowball that speeds you toward wealth far faster than you can imagine."Earn, save, and invest.John, who runs personal-finance blog ESI Money and retired early at 52 with a $3 million net worth, interviewed 100 millionaires over the past few years.In a blog post, John, who doesn't share his full name online, revealed what he learned from them, including the simple strategy they use to build wealth."I have had one or two interviewees with some sort of fortunate life event (like working for a startup company that made it big and paid stock options), but almost all of them grew their wealth the old-fashioned way: They earned a lot, saved a ton, and invested for a long time," he wrote.He added: "They make solid money moves over time and ultimately become wealthy."It sounds simpleand it is."Becoming wealthy is simplecreate a gap between earning and spending for many years," he wrote. "A huge inheritance or hot stock tip is not required."See the rest of the story at Business Insider
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