7 Money Saving Tips from the Very Wealthy
Did you ever notice that the very wealthy tend to be a lot more frugal and saving than the average white collar or blue collar worker? That may seem odd, given their wealth. After all, they go to fancy parties, eat at costly restaurants, and spend money on lavish vacations, right? Yes, but despite these expenses, they tend to be fairly saving in MANY other areas. They didn’t get rich by wasting!
Here are a few tricks the very wealthy use to save money:
- Sweat the small stuff -- The rich make BIG investments, but they don’t throw away pennies and dimes. Small expenses often add up to pretty hefty sums of money over the course of the year. How many truly rich people do you see in line at Jamba Juice or Starbucks? Think about the “little” things in your life, and try to trim them from your budget.
- Don’t buy to impress – One of the greatest pitfalls of middle and upper-middle class life is the need to “keep up with the Joneses”. Many people buy TVs, gaming consoles, computers, cars, and other fancy, costly stuff they don’t need, all so they can feel the illusion of superiority over their friends and neighbors. Buy what you need (and even what you want), but don’t do it to impress anyone else.
- Think about your future -- Having money is fine, provided you use it the right way. The very wealthy will spend a good deal of money, but they’ll also invest a lot of it into things that will pay off many years later. Use your money wisely, and put it to work earning more money for you. If that means investing, trading in stocks and bonds, or starting a company, do it! Don’t let your money sit, but make it work for you.
- Know where it’s going -- It may seem annoying to keep track of every little expense, but it’s the best way to be sure you’re not wasting money. Keep track of the money that you earn as well as the money you spend, and you’ll soon see the places where you could stand to trim the fat from your budget.
- Save more than you spend -- When you receive your paycheck, you need to cover all of your living expenses first. That’s not up for debate. But what do you do with what you have left? Do you set it aside into a savings account, or do you spend it? Your goal should be to save 75% of your “leftovers” after living expense, and only spend the other 25%. You’ll waste less money, and you’ll have a lot more saved up in the long run!
- Watch for the little fees -- A $5 per month charge on your credit card may not seem like a lot, but that can add up over a lifetime. The more “little” fees you incur, the faster your money will slowly trickle away. The key to being very wealthy is to find all the little “leaks” and plug them up. Pay your bills on time to avoid late fees, don’t overdraft your bank account, and watch for hidden fees at your bank.
- Look for bargains and sales – Rich people got rich by hard work and shrewd business sense, but they stay rich by spending their money wisely. They don’t just walk into a car dealership and buy their fancy luxury car at sticker price. In fact, the wealthy tend to be the ones who drive the hardest bargains! Always take advantage of sales and bargains. The more you save on your regular expenses, the more you have to set aside for savings and investments.
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