If you were to write down your ideal lifestyle, what would it look like? It’d probably go something like this: 

• Stylish downtown apartment – $5,000 per month
• Sports car – $1,500 per month
• Weekly shopping trips – $2,000 per month
• Weekly spa treatment – $1,000 per month
• Quarterly luxury holidays – $2,000 per month
• Fine dining weekly – $800 per month
• Other entertainment – $500 per month
• Other expenses – $8,000 per month

Okay, now add all that up. You end with a monthly expenditure of $20,800. That’s a lot. In fact, that’s so much that you’d have to be in the top one percent of people in the US to be able to blow that much money every month. The chances are, you’re not there yet. 

But that’s okay. As it turns out, there is a way that the average person can manage their finances in a way that can help them achieve the lavish lifestyle that they want. There is a massive catch – there’s no get rich quick scheme. But if you are consistent in your approach, then even somebody on an ordinary income can become fabulously wealthy. 

Follow these steps. 

Step #1: Cut Your Unnecessary Expenditure

The first step to achieving the lifestyle you want is to slash your expenditure. It sounds paradoxical: how are you supposed to get the lifestyle you want by spending less? It all comes down to capital accumulation and compound interest. The more money you have invested in productive assets, like companies, the higher the return from all the profits they make, and the higher the future value of your portfolio.

Capital is how the rich get rich and stay wealthy. Without it, you’ll always have to rely directly on income which, for most of us, is nowhere near enough. 

Cut back on all your unnecessary spending. Stop going to Starbucks every morning. And put the money you save in an investment account. 

Step #2: Cut Your Rental Costs

Like it or not, rent in your most significant monthly expense (statistically speaking). If you want to save a lot of money each month, then you need to move to cheaper accommodation. But where to look? Finding a cheap apartment can be an easy task if you have access to local resource like this report. Once you’ve found a smaller place, you can save more of your money and build your pile of capital faster. 

Step #3: Get A Promotion Or Work Overtime

The next thing you need to do is work longer hours or get a promotion at work. But instead of spending the extra money you make, save it instead. This will help you grow your cash pile even faster. 

If you follow these steps, you’ll notice something: every year your pile of money grows by a larger number — year one, you might make $1,000 in interest. But by year 10, that could be $70,000. And by year 20 more than $250,000. 

Wait a second, $250,000 divided by twelve gives you $20,830 – just enough for you to fund your dream lifestyle.