By | Sam Dogen | www.cnbc.com
Hacking your finances — ordering water instead of cocktails, moving to a less expensive area or hoarding grocery coupons just to save a few bucks — has become a bit of an obsession among Americans, especially millennials, looking to get rich and retire early.
Eating $0.69 ramen and skimping on $8 avocado toast isn’t a bad idea … if you’re a broke college student. Once you’ve graduated and hit your 30s, however, it’s hard to frugal your way to early retirement.
Why? Because a couple hundred bucks isn’t a life-changing amount. The graph below, which uses data from the US Bureau of Economic Analysis, shows that household savings — or whatever income people have left after their spending — has little effect on boosting wealth: