7 Frugal Habits That Will Make You Rich
Financial success doesn’t happen overnight. Becoming wealthy and maintaining it requires sacrifice and discipline, especially when you frequently spend on frivolous things. Perhaps the best way to change your life is to amend your spending habits and take control of your financial decisions.
You, alone, are responsible for the state of your finances. If you’re tired of living paycheck to paycheck or having your phone line cut off because of frequent delays in bill payments, it’s high time for you to manage your money.
Habits, they say, can be formed in a matter of 21 days. Learning these frugal practices by the world’s top billionaires may impact your finances greatly and initiate the change you want in your life.
Attaining financial triumph doesn’t happen in an instant, but it is achievable, especially if you decide to change your habits now.
Here are seven frugal habits that you should keep in mind to become rich.
- Be Mindful of Expenses—No Matter How Small
Frivolous expenses, while occasional, add up over time. Think this through: how much have you spent on recent ATM withdrawals when sending or receiving funds electronically?
It’s easy to dismiss the fee required for each transaction you make considering they don’t cost much. But, the accumulation of these charges can end up stumping you and, in the end, cause you to wonder, “How did that happen?”
The next thing you know, you’re compelled to pay an unexpected expense. Mindful spending keeps one’s expenses at bay, more so, dodges large bill payments at the end of each month.
- Live Below Your Means
You don’t really have to live in a high-end condominium or a popular gated subdivision. Nor do you have to possess a luxury car to get to and from work.
While those items can easily give away a certain status in life, even the wealthiest people have long learned that living below one’s means is necessary if you want to be financially successful.
For instance, Wal-Mart founder, Sam Walton, famously drove around in a 1979 Ford F150 pickup truck. Meanwhile, Facebook founder and hoodie-wearing Mark Zuckerberg owns a modest $30,000 Acura TSX entry-level sedan. Also, billionaire Warren Buffett continues to reside in his modest home in Nebraska, which he purchased for 31,500 dollars back in 1958.
A few nice things can surely amount to a certain happiness, but in the long run, won’t save you the money you need to be financially successful.
- Practice Wise Spending—Don’t Pay for Anything in Full
Watch for sales and discounts! Avoid high-end malls, and instead, do your shopping at depots and department stores where you can get things for less.
Remember that the wealthy never pay full price for the items they need. They, however, practice wise purchasing by checking out and buying quality items on eBay, OLX, and the like.
- Sell or Rent out Your Pre-Loved Items
If you have a spare gadget that’s still functional, or a closet full of clothes you no longer wear, you can opt to sell them for extra cash.
Buying and selling sites such as eBay and OLX as well as online pawnshops like PawnHero made earning quick cash easy, not to mention safer and faster too.
Opting to hold a garage sale or hosting a wardrobe swapping party are great ideas also. If you have a spare room in the house, you can tidy it up and consider renting out. These are great ways to earn additional cash meanwhile crossing off decluttering in that nagging to-do list of yours.
- Leave Your Cash and Credit Card at Home
If you’re the impulsive type of shopper, this can do wonders for you. A U.S. New & World report reveals that “86 percent of people who spend cash on luxuries like expensive cars, jewelry, and electronics are non-millionaires trying to act the part by purchasing luxury brands.”
It’s best not to carry a hefty amount of cash when going out, more so to refrain from using one’s credit card for unplanned purchases. Millionaire, T. Boone Pickens, who only buys clothes for work every five months, recommends making shopping lists and actually sticking to it.
He also suggests refraining from making out-of-budget expenses with help from a credit card because by doing so, one puts himself in additional debt.
- Don’t Invest In “Easy-Money” Schemes
As emphasized earlier, becoming a wealthy person doesn’t happen in an instant. According to studies conducted by Thomas C. Corley, “16 percent of the wealthy gamble on sports at least once a week versus 52 percent of the poor.” Additionally, “9 percent of the wealthy play the lottery every week versus 77 percent of the poor.”
Don’t waste your money trying to accumulate a significant amount of wealth in a short amount of time, because the probability of that happening is slim to none. Instead, invest the money you would have spent into new business opportunities.
- Proactively Search for Ways to Keep the Money Coming In
If there’s anything self-made millionaires have in common, it’s that they walk their talk and are go-getters. They are people of action who take appropriate risks, are constantly looking to improve themselves, and are addicted to knowledge, as it is the best way to gain a competitive advantage in life’s financial endeavors.
Rich people all have a knack for making more out of their present income. They invest wisely and live frugally.
When it comes to money and finances, it all boils down to choices and personal responsibility. Your journey towards financial success is entirely up to you.