Editor's note: This article was originally published on June 1, 2023. It has since been updated.
Jonathan Sanchez is the first millionaire in his family. He now helps others from his generation build generational wealth. He tells CNBC how his journey to becoming a millionaire mainly involved passive income from real estate and how it allows him to work less and spend more time with his family. Sanchez is the co-founder of Parent Portfolio, a website that helps families learn to grow wealth and raise financially responsible kids. The 39-year-old says that being "frugal" has helped him in a big way. He, however, clarifies that living frugally doesn't mean spending less money or buying cheap things. It's about being mindful of their said behaviors and not being wasteful. He talks about five things he absolutely refrains from spending his money on.
He Never Buys Brand New Cars
He says that cars are susceptible to quick value depreciation. According to KBB.com, cars shed almost 60% of their original value within a span of 5 to 6 years. Hence Jonathan prefers to buy a used car that is a couple of years old and comes cheap.
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He Maintains A Distance From Fast Fashion
Jonathan says he keeps his wardrobe simple with a few timeless pieces. He never buys more than what he actually needs. He claims that the only time he replaces clothes is when he notices holes in them. He is also teaching his kids the same old values of taking care of their belongings and not being wasteful.
Refrains From Buying More Food Than He Needs
He says how he is extremely conscious when it comes to buying food. He hates throwing away food that can be saved and eaten the next day. He also encourages packing the excess food at the restaurant and eating it the next day.
He Says He Never Invests in Low-Quality Goods
Jonathan believes that being frugal doesn't mean buying whatever is the cheapest. He understands that compromising on quality for a few dollars is not the right approach when it comes to mindful saving and spending. Constantly replacing poorly made items cost you more money in the long run along with generating more waste.
He Never Spends Time Mowing his Lawn
He talked about how he once enjoyed mowing his lawn but he refuses to to do it anymore. Now he chooses a landscaping company to come to mow his lawn once a week. He says that he uses the extra time saved with his family and teaches his kids how to code, play guitar with them or take them out. He says that the lesson he learned over the years is that it's never wise to do all the work alone and delegation is as important as any other professional skill.
Other Ways To Become A Millionaire
Saving
Saving will never disappoint, that's the art of compounding. The math is simple, you save now you save for your future self, you take debt now you take from your future self.
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Avoid Debt
Buying things that we don't need has risen more than ever all thanks to the targeted ads. It's become extremely important for us to stop and think before buying something. Ask questions like "Do I really Need it?" "Do I have something similar?"Will this add value to my life?"
Look For Other Ways To Make Money
Okay, there are many ways you can earn extra money. You could take up a side gig or ask for a raise, but firstly it's a good option to sit down and make a plan to work on your skills.
