Frugal Living: Five Money-saving Habits of the Super Rich You Should Follow
The first thing you need to do after you’ve decided to try frugal living is to sit down with a notebook and a pen and write down what you spend your money on. Start by making a list of most essential bills such as rent, insurance, car payment, utilities, etc. Once you know exactly where your money is going, then you can invent ways to cut those costs down and start to apply frugal living to your daily activities.
6 Frugal Habits of World’s Richest People That You Should Emulate
- Always Use Coupons
Use of coupons is an increasingly common frugal habit of the rich people in the world today. Many billionaires and famous people like Lady Ganga, Kristine Bell, Roy Hibbert, and Carrie Underwood are among the top couponing fanatics. The reason why these rich people prefer coupons is that they end up saving hundreds of dollars within a few months of shopping. If you want to stay frugal and save a substantial amount of money, consider using coupons regularly.
- Live Below Your Means
Most of the world millionaires live below their means, and some of them even cut their own hair. They live in modest homes, drive cheap cars and don’t spend money on luxury. For example, Buffet, a billionaire investor still lives in the same house he bought 61 years ago. Bill Gates has been using commercial airplanes to travel to various destinations while Azim Premji owns a Toyota Corolla despite being the 61st richest person in the world.
- Don’t Carry a Ton of Cash
Having accumulated huge cash in your bank account doesn’t mean you should carry a wad of money in your wallet. Try to travel with a few dollars in your pocket to keep yourself off from impulse buying. Many people who carry lots of cash are tempted to buy things that they don’t need as well as become tempted to spend their money on luxuries such as jewelry and electronics. Since you may like to buy lavish items, always be ‘money vigilant’ before swiping your credit card.
- Avoid Luxury Brands
If you think luxury brands are made better than other brands, then you are wrong. Some of the fancy accessories and design label clothes aren’t worth the money. Emulate the frugal habit of rich people by shopping for simple closets, watches, and shoes from the flea market. For example, the founder of Facebook Mark Zuckerberg wears a black T-shirt, jeans, and sneakers while Bill Gates, the richest man in America keeps time with a watch worth $10.
- Cook at Home
Cooking at home comes with a list of benefits such as proper hygiene, more nutritional value, and low costs. But if you eat out in classy restaurants, you may end up paying high prices for food which doesn’t have adequate nutrition. You can save a lot of money if you develop the habit of cooking at home. Some rich people like Charlie Ergen and his wife carry a paper bag lunch containing Sandwich and Gatorade every day when getting to work. The DISH Network founder prefers to cook at home and bring some food while going to work to avoid unnecessary spending on hotels.
- Consider DIY Route
Don’t pay for services that you can do for yourself. If you have a birthday party, wedding or graduation ceremony, bake your cake instead of ordering from baking companies. Just like some wealthy people in the world, you can also cut your hair rather than considering to go for pricey grooming. For example, Ingvar Kamprad and John Caudwell trim their hair to avoid wasting money and time at the barber. But Kamprad pays for a haircut when he visits developing countries—as he believes that paying a barber in these countries is a great way to give back to society, according to the Newsweek report.
It’s no secret that everyone has dreamed to be a millionaire. But making your dream a reality is not a simple thing. You need to strictly follow the frugal habits of rich people who you usually hear and see either on the TV screen or magazines. The journey to become a millionaire begin with one step—staying frugal lifestyle and taking advantage of any situation which enhances saving.