Wealth Building Strategies of 403(b) Super Savers
July 24, 2026
There were more than 23.6 million Americans with a net worth of $1 million or more in 2025, about 7% of the total U.S. population. Want to join their ranks? This article describes strategies for 403(b) plan participants to build wealth over time. Yes, it is possible for public sector employees to accumulate a seven figure net worth (assets minus debts). In fact, a recent study placed teachers in the top five careers for creating millionaires.
Why teachers? Reasons include: 1. salaries that generally increase with experience and advanced degrees, 2. most teachers have defined benefit pensions that guarantee a certain level of retirement income, 3. generous health insurance benefits with little or no premium payment, 4. jobs tend to be secure, especially when tenure is achieved, and 5. teachers often earn other income (e.g., side hustles and summer employment).
Super savers consistently save a large portion of their income. Many are “millionaires in the making.” This post describes wealth-building strategies that they use. It also includes a formula from the classic book, The Millionaire Next Door (TMND), to determine if net worth is on target for age and income and concludes with a research study about millionaire characteristics, three “need to know” facts, and six take-away action steps.
Seventeen Super Saver Strategies
#1: Live Well Below Your Means
A central message of TMND (Stanley & Danko, 1996) is that many millionaires spend significantly less than what they earn. They resist lifestyle inflation, avoid unnecessary luxury purchases, and save a substantial part of their income. Also, they control spending and do not purchase more house than necessary. Frugality is the key to wealth-building. Wealth is built by consistently spending less than earnings, regardless of income level.
#2: Pay Yourself First
Super savers treat savings like a mandatory monthly bill (e.g., car payment). Instead of saving what (if anything) is left over at the end of each month, they automatically direct money into savings and retirement accounts first. Example: 403(b) plan contribution payroll deductions. Super savers also have adequate (at least 3 to 6 months expenses) cash emergency funds to reduce the need to rely on high-interest credit.
#3: Budget and Spend Wisely
Budgeting and expense tracking are hallmark behaviors of super savers who want to know where their money goes. They prepare budgets and monitor expenses to eliminate wasteful purchases and free up money to invest. Super savers also comparison shop, negotiate prices, and seek value rather than prestige. Stanley & Danko found that most millionaires were not interested in a lifestyle of consumption and high-status items.
#4: Invest Consistently for the Long Term
Market-timing is not a practice of most super savers. Instead, they invest regularly for decades, often through dollar-cost averaging (e.g., regular deposits at regular time intervals, like 403(b) contributions). Super savers understand that disciplined, long-term investing and patience allows compound interest to work its magic. They avoid emotional investing driven by fear or excitement and, instead, rely on research and diversification.
#5: Avoid Consumer Debt
Super savers know that debt hampers wealth creation because it reduces the ability to save and invest when future income is already “spoken for.” TMND found that many millionaires avoid carrying balances on credit cards and minimize debt for depreciating assets (e.g., cars). Other smart credit management strategies are making electronic payments to avoid late fees and earning cash rewards on credit cards that are paid in full.
#6: Buy Used Instead of New
TMND noted that many millionaires buy used vehicles rather than expensive new ones. Since vehicles depreciate rapidly, buying used preserves capital that can, instead, be invested. The book repeatedly emphasizes that expensive homes, luxury cars, designer clothing, and prestigious brands rarely create wealth. Millionaires often appear surprisingly ordinary because they prioritize financial security over appearances.
#7: Increase Wealth Quietly
A high income alone does not create wealth. In fact, moderate-income super savers (say, teachers) can actually become wealthier than high-income spenders who set little money aside for the future. Many super savers avoid discussing their finances (exceptions: a spouse or advisor) or displaying status symbols of wealth. Remaining financially private reduces social pressure to spend and discourages unwanted requests for money.
#8: Build Multiple Streams of Income
Many super savers earn income from sources in addition to their primary job. Sources of extra income include investments, rental properties, royalties, tutoring, digital products (e.g., selling lesson plans), and side hustles (e.g., adjunct college instructor). Multiple income streams increase financial resilience and accelerate wealth building. For example, freelancers can open a SEP-IRA retirement account for additional retirement savings.
#9: Work Hard in a Stable Profession
Job security (e.g., tenure for teachers) and seniority are resources for building wealth. Incomes generally rise over time and defined benefit pension plan formulas are based on income and years of employment. TMND noted that many millionaires have strong work ethics. They often work long hours, continuously improve themselves professionally, and view hard work as a major contributor to their financial success.
#10: Earn Free Money
Super savers love free money, especially when it is tax-free (e.g., credit card cash-back rewards; $25,000 charged x 0.2% = $500). Other free money examples include 403(b) matching contributions (some employers provide this benefit), college scholarships, employer tuition assistance, manufacturer rebates on purchased products, bank account sign-up bonuses, and loyalty and rewards programs that offer gift cards and discounts.
#11: Control Lifestyle Inflation
As income increases, many people immediately increase their spending proportionately. Super savers resist lifestyle inflation (a.k.a., lifestyle creep), using at least part of their raises to increase long-term investments rather than pay for short-term expenses. Many avoid high status items (e.g., fancy cars) to both save money and not accentuate the difference between their financial situation and others.’
#12: Value Financial Education and Advice
Super savers continuously improve their financial knowledge (e.g., books, blogs, podcasts, webinars). They study investing, taxes, and other areas of personal finance to make informed financial decisions. Many also hire financial advisors and/or associate with knowledgeable financial role models who reinforce positive financial behaviors. Personal habits are often influenced by friends, family, and coworkers.
#13: Set Goals and Practice Stability
Wealth-building is enhanced by financial goals with savings targets and net worth benchmarks. Super savers periodically calculate their net worth and review investment performance to keep their finances on track. Stability also matters as frequent changes (think houses and spouses) can deplete financial assets. TMND found that many millionaires get married and stay married.
#14: Avoid Financial Subsidies to Adult Children
A 2025 survey by AARP found that nearly 75% of parents are financially supporting at least one adult child. On average, parents provide about $7,000 annually, with a median contribution of $1,400. Continuously subsidizing adult children is a drain on parents’ retirement savings. Workarounds for this situation include frank conversations, clear financial boundaries, time limits (i.e., an end date), and saying “no” without guilt.
#15: Minimize Income Taxes
Super savers try not to pay any more tax than legally owed. As a result, more after-tax income is available to invest and build wealth. Strategies to reduce taxes include contributing to a HSA, 403(b), and/or traditional or Roth IRA, claiming available tax credits, holding investments longer than one year (for long-term capital gains rates), using a 529 plan for education savings, and taking business deductions if self-employed.
#16: Protect Wealth with Insurance and Estate Planning
Building wealth also involves protecting assets from losses, court liability judgements, and catastrophic expenses. This speaks to the need for supersavers to have adequate health, life, disability, property, umbrella liability, and (perhaps) long-term care insurance. In addition, a will, durable power of attorney, and beneficiary designations to help preserve assets for future generations.
#17: Maintain Good Physical Health
The greatest wealth is health (Virgil, BC), which requires healthy living habits (diet, exercise, sleep, etc.). Healthy people are more likely than others to be productive, get promoted, and earn more. They also tend to live longer, earn compound interest on savings for a longer period of time, have fewer wealth-draining medical expenses, and get a better return on money contributed to Social Security (FICA tax).
Score Interpretation
- 2.0 or higher: you are in the top 25% of wealth builders and a prodigious accumulator of wealth (PAW)
- 1 to 1.99: you rank in the top half of Americans in your wealth building prowess
- 0.51 to 0.99: you are a below average generator of wealth for your age and income level
- 0.50 or lower: you are in the bottom 25% of wealth builders and an under accumulator of wealth (UAW)
Research Results
The National Study of Millionaires (N =10,000+) by Ramsey Solutions echoed many findings of TMND three decades earlier. Among the key findings about millionaires:
- Eight of ten invested in their employer’s tax-deferred retirement savings plan (e.g., 403(b))
- Three of four said regular, consistent investing over a long period of time was the reason for their success
- 94% live on less than they make and almost 75% have never carried a credit card balance
- 88% graduated from college (primarily state schools) and 52% earned an advanced degree
- 85% used a grocery shopping list, always or somewhat, to save money on food
- 79% never received an inheritance and 80% came from families at or below middle-income level
- Only 31% averaged $100,000 a year in earnings over the course of their career
Three (More) Things
- It generally takes 3 to 4 decades to build wealth and most self-made millionaires reach that milestone in their late 40s to mid-50s.
- Many people with expensive possessions (house, car, clothes) are not wealthy and many wealthy people do not own expensive items.
- Most people do not become wealthy from their income alone; they invest and benefit from the awesome power of compound interest.
Six Smart Strategies
No. 1: Delay Gratification — Postpone discretionary purchases today in exchange for increased financial security in the future.
No. 2: Develop Negotiation Skills — Ask “What discounts are available?” for large purchases to save money that can be invested.
No. 3: Maintain Financial Flexibility — Avoid locking yourself into expensive fixed expenses such as oversized mortgages and vehicle payments.
No. 4: Practice Tax Diversification — Save money in a combination of tax-deferred, taxable, and tax-free accounts that are taxed differently.
No. 5: Measure Progress Regularly — Calculate net worth, review investment performance, and adjust financial plans as circumstances change.
No. 6: Keep Investment Costs Low — Minimize expense ratios, fees, and taxes on investments (e.g., select a no-load index mutual fund).
In Summary
Super savers become wealthy the old fashioned way: slowly over time. It is possible for people of ordinary means to become millionaires through hard work, steady super saving, and the magic of compound interest. Be patient and allow your money to grow.
Barbservations: I was (and am) a frugal super saver, followed almost all 17 strategies, and became a millionaire in my early 50s. Yes, it can happen as you increasingly earn more, save more and generate more interest on larger account balances. Recently, a financial advisor told me I could accumulate $24 million if I live until my early 90s. Not bad for a grandchild of Irish immigrants! My 403(b) plan is a key wealth component.
This post provides general personal finance information and does not address all the variables that apply to an individual’s unique situation. It should not be construed as legal or financial advice. If professional assistance is required, the services of a competent professional should be sought.