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Everyone Should Know About These Money Saving Tips from Billionaires

Everyone Should Know About These Money Saving Tips from Billionaires

There are plenty of billionaires in this world nowadays, but exactly how they got to that level of financial comfort may surprise you. They are not all the flashy, big spenders we see on many Hollywood tv specials. In fact, many of them attribute their success to living quite frugally. Here are some of the best money saving tips from some of the world’s most wealthy people.

Michael Bloomberg
Net Worth: $34.3 Billion

Stick with what works best for you. Michael Bloomberg is well known as one of the most controversial mayors of New York City, and majority share holder of Bloomberg L.P., an international financial information company. But one thing most people don’t know about Mayor Bloomberg is the fact that for the past 10 years he has only owned two pairs of work shoes. They are both black loafers, and provide the most comfort and functionality for the billionaire. He knows that they are what works best for him and chooses to save his money for other things rather than spend a small fortune on shoes that he will never really wear.

Bill Gates
Net Worth: $79 Billion

Learn from your past mistakes. Making mistakes with money is a common occurrence in life. We all do it, but those of us who ultimately achieve financial success in life not only make those mistakes, but more importantly, they learn from them. Bill Gates, well known as one of the richest people in the world once said, “It’s fine to celebrate success, but it is more important to heed the lessons of failure.”

Ingvar Kamprad
Net Worth: $53 Billion

Avoid unnecessary spending. Ingvar Kamprad, founder of IKEA, believes that some spending is just not needed even if you do have plenty of funds to blow. Like many other super wealthy individuals, he prefers to fly economy class rather than in a private jet. In his memoir, Kamprad wrote: “We don’t need flashy cars, impressive titles, uniforms or other status symbols. We rely on our strength and our will!”

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Warren Buffett
Net Worth: $66.1 Billion

Buy a home that fits your needs. Warren Buffet is the classic example of this rule. He still lives in the Omaha, Nebraska home that he bought in 1958 for a mere $31,500. Despite having billions of dollars at his disposal, Buffet finds no reason to live in an enormous mansion just because he can. Instead he is comfortable in his modest 5 bedroom stucco house located in the heart of our nation.

Oprah Winfrey
Net Worth: $2.9 Billion

Find your true passion. This simple tip has paid off big time for Oprah. She has been quoted as saying, “You become what you believe. You are where you are today in your life based on everything you have believed.” Figuring out what you love to do, and then pursuing it with everything you’ve got will often result in the greatest of life’s rewards.

Richard Branson
Net Worth: $5.1 Billion

Set goals and do everything in your power to reach them. British Billionaire and founder of the Virgin Group, Richard Branson once started out with just a list of goals. They weren’t even the most realistic ones, but he set those goals and went for them. Little did he know what his goal setting could one day achieve.

Carlos Slim Helú
Net Worth: $78.5 Billion

Start saving your money early. Carlos Slim, a Mexican businessman who was recently edged out by Bill Gates as the richest man in the world, offers one of the most important tips when it comes to enjoying financial success. Start saving your earnings as early as possible. The sooner you start saving your money and managing it properly, the better off you will be later in life no matter what kind of work you do.

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John Caudwell
Net Worth: $2.6 Billion

Use alternate modes of transportation. This English businessman has made his fortune in the mobile phone industry, but that doesn’t mean he finds it necessary to drive around in a flashy car and show off his wealth. In fact, he still enjoys walking, riding his bike and even using public transportation to get from here to there.

David Cheriton
Net Worth: $1.7 Billion

Learn what you can do yourself. David Cheriton was one of the first investors in Google and enjoys quite a nice return on his initial $100,000 investment made in 1998. Yet he refuses to go to a barber and cuts his own hair. Even this seemingly small savings can add up especially when you adopt it to other areas of your life. Just think of how much money you could be giving other people to do things that you are perfectly capable of doing yourself.

Mark Zuckerberg
Net Worth: $30 Billion

Drive a modest card. Even the founder of Facebook lives frugally in many ways. One of which is the fact that he drives a modest, $30,000 Acura, entry-level sedan. He could have any car he wanted to drive him from here to there, or a fleet of them for that matter, but instead he chooses this simple and practical vehicle.

John Donald MacArthur
Net Worth: $1 Billion at death in 1978 ($3.7 Billion Today)

Make a budget and stick to it. MacArthur, who was the sole shareholder of Bankers Life and Casualty Company of Chicago, started his business career off with one small acquisition and then built around it. Despite living in an era that was all about Hollywood glitz and glamour, MacArthur refused to buy into this craze and lived very frugally. He never owned extravagant luxuries, never had any press agents, and kept a $25,000 annual budget.

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Rose Kennedy
Net Worth: Unknown at death in 1995

Be creative and look for alternatives in spending. Rose Kennedy is most famous for being the infamous family’s matriarch, but her money saving tactics were quite surprising considering the amount of wealth the family had accumulated. Instead of buying scrap paper reams, she would wait until the end of the year and buy old desk calendars that had just worn out their usefulness. These tended to be much cheaper than the scrap paper, allowing her to save on even the littlest things.

T. Boone Pickens
Net Worth: $1 Billion

Make a shopping list and only carry the cash you need for that list. Oil mogul and billionaire, Pickens always practices one sure way to help save money; he never carries more money in his wallet than he needs. He makes a grocery list before heading to the store, only buys the items on that list, and only carries with him enough money to make that purchase. You can’t spend money you don’t have, right?

Jim Walton
Net Worth: $34.7 Billion

You don’t always need the latest and greatest. Walton, youngest son of WalMart founder Sam Walton, lives a frugal life just like his father always taught him. Despite Walton’s great fortune, he still drives a pick-up truck which is over 15 years old. He realizes that it is better to get all you can out of your vehicles rather than driving around the flashiest or most expensive one you can get your hands on.

Donald Trump
Net Worth: $3.9 Billion

Work hard. Donald Trump attributes all of his success to his work ethic. Many outsiders see Trump as “lucky” in the world of finance, but Trump says that luck comes from hard work. “If your work pays off, which it most likely will, people might say you’re just lucky. Maybe so, because you’re lucky enough to have the brains to work hard!” he says.

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Robert Kuok
Net Worth: $11.5 Billion

Seize opportunities while you can. Robert Kuok, the richest man in Malaysia, lives simply by the rules he learned from his mother, to never be greedy, never take advantage of others, and always have high morals when it comes to dealings with money.

Kuok explains that in order to become successful financially, you must be courageous and always seize opportunities as they come your way, even when others doubt your ability.

Li Ka-shing
Net Worth: $31 Billion

Live a humble life. This man’s incredible empire spans 52 countries and employs over 270,000, yet he was a school dropout. He attributes his incredible success to living a life that is humble and simple. When you are just starting out, you must teach yourself how to live off less and adapt to a lifestyle that is appropriate and not spectacular.

Jack Ma
Net Worth: $10 Billion

The customer always comes first. Jack Ma, the founder of Alibaba Group and self-made billionaire, believes that customers should always be priority #1. Behind them comes employees and last in line should be shareholders. Ma believes that a person’s attitude how they live their life is more important than their abilities.

Howard Schultz
Net Worth: $2.2 Billion

Realize that money is not everything. Howard Schultz, Chairman and CEO of Starbucks, stated that a person’s values are far more important than their net worth. He is quoted as saying, “I never wanted to be on any billionaire’s list. I never have defined myself by net worth. I always try to define myself by my values.”

Featured photo credit: Kris Krug via flickr.com

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Last Updated on June 26, 2020

25 Easy Tips on How to Save Money Fast

25 Easy Tips on How to Save Money Fast

“How to save money fast?” This is the question asked by all of us not in the top 1% of rich people.

If you are looking for ways to drastically reduce your expenses immediately, first look at what you need to spend money on every week. And I mean really need.

You don’t really need to order in food. You don’t really need to buy expensive perfume.

Building from that, you can work out how your regular expenses can be reduced.

As for irregular expenses, they can also be deceptively costly in the long run. Once-off buys can also be tackled with some prudent planning and a little extra research.

And remember: a budgeted lifestyle does not mean a bad or boring one!

But first, understand what budget you can cut down on daily:

  • Regular expenses for the average adult (can be trimmed but not eliminated):
    • food
    • rent/mortgage
    • cell phone
    • insurance
    • socializing/entertainment
    • transportation
    • hygiene products
    • household bills
  • Irregular expenses for the average adult (can be eliminated or cut down a lot):
    • travel
    • clothing
    • medication (*depends)
    • grooming (hair, nails etc.)
    • gifts

Now, let’s dive right into the 25 ways to save money fast:

Save Money on Food

1. Bring a stock of food to the office/work

Instead of popping out for an overpriced salad and a smoothie, leave a set of basic utensils at the office as well as a stock of non-perishable goods such as tinned fruit, tuna, rice crackers and so on (try to avoid the junk food and this can turn into a pretty great diet!).

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Stocking up means you won’t forget or say “I didn’t have the time” when you rushed out to work in the morning.

2. Buy the store-brand version

Many basic foods, such as bread and milk, will taste exactly the same as their branded alternatives. Go for stuff with minimal additives and preservatives. Meat in a tube is probably insanely unhealthy!

3. Eat cheaper cuts of meat

Learn how to tenderize and flavour cheaper meat and fish, and save on the (typically) most expensive item on your grocery bill.

4. Have group dinners

If 10 friends put $5 each in the kitty, it’s pretty easy to make a giant lasagne and get refreshments, as well as hang out with your favourite people.

Save Money in Transport

5. Get a bicycle

Save on gas money and bus/metro fares with this underrated mode of transport.

6. Use public transport and/or don’t get taxis

Some places can only be reached by car. But as a good practise, check your public transport website and see if any routes pass nearby where you need to get to. Walk as much as you can.

7. Find the cheapest gas

Regularly check out where the cheapest gas can be bought.

Save Money in General Shopping

8. Shop online

Not only will you save on the gas or transport fares from going to the shopping mall but you will also find better deals

9. Sell your old stuff

Get your unwanted belongings up on eBay ASAP and earn a few dollars.

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Here’re more ideas for you: 25 Things to Sell to Make a Lot of Money

10. Bulk buying stores

For regular non-perishable/slow perishable purchases such as toilet paper, cat food, pasta, washing powder and so on, do an epic stocking-up trip to a co-op or equivalent (my mum used to go to a place that restaurants buy from).

Be wary of supermarket “deals”, as some have been found to be fraudulent after working out a simple calculation.

11. Become a flea market/car boot sale/street market guru

You can find original gifts and develop good negotiation skills at these places.

12. Generic brand medication

More often than not, the generic version of paracetamol and other basics work the same as the branded version.

13. Choose deodorant, not perfume

It blows my mind when someone drops $70 on a bottle of spray. Stick with a nice deodorant, and not only will you smell just fine but you’ll be sweat-free as well!

Cut Down on Household Expenses

14. Printing

Ink is one of the most expensive substances in the office and coloured ink is doubly so. B

e more efficient and choose black and white, and if your printer doesn’t have a print-both-sides options, just print odd pages first, re-insert the paper and print even pages.

Expand the margins of what you are printing as often as you can to save on paper.

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15. Minimize SMS and phone calls

A combination of a free chat service such as WhatsApp and a free call service such as Skype can reduce your bill to nothing (so long as you have a decent Wifi connection).

16. Shop around for insurance

Most people don’t spend enough time searching for the best insurance deal.

Keep a watchful eye out for deals and new competitors in the market.

17. Try re-negotiating your rent/mortgage

If you have built up a good credit history or a good rapport with your landlord, then chances are a frank chat about needing to tighten your spending could result in lowering your payments. You’ve nothing to lose from trying.

18. Don’t get a TV

Invest in a computer/laptop and an internet-only package. You can watch more (and often better) entertainment on the web, and skip the advertisements as well.

19. Pool your internet bill with a neighbour

My apartment building is basically a big old house split into three apartments. There are five of us in total. We pool the internet bill, making it crazy cheap.

Save Money in Socializing, Entertainment And Travel

20. Have house parties

Instead of paying for overpriced drinks, set up a series of in-house get-togethers with your friends. Everyone takes a turn, so it’s not always your house that needs cleaning.

For sound insulation, hang heavy drapes on the walls and windows. For music, invest in a good second-hand set of speakers which you can connect to your computer. Let Spotify or Grooveshark playlists do the rest.

21. Open festivals, meetups and events

It never fails to surprise me how much underground stuff goes on around me for free or for very cheap. Find out who runs the blogs and websites that list all the less well-known cultural activities.

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22. Volunteer

If you can’t pay for a ticket, volunteer and get to be there anyway.

23. Housesit

There are multiple housesitting websites offering you the possibility to avoid paying hotels and skip the discomfort of crummy hostels.

Save Money on Hygiene and Beauty

24. DIY beauty

French manicures, pedicures, waxing, eyebrows… pretty much all of these can be achieved at home (and done well) with some practise. There are plenty excellent blogs and YouTube tutorials to help.

25. Fewer haircuts/volunteer at a trainee hairdresser

If you can’t bear the risk of a trainee touching your locks, learn more ways to manipulate your hair as it grows and get haircuts sparingly. Women’s haircuts are outrageously priced in many cities.

Bonus: Effective Money-Saving Tips for Everything

Here’s a summary of what you can generally do to save more money:

  • Share/pool resources. Organize a neighbourhood sharing scheme, common resources for your apartment block or with your friends. Not everybody needs an individual lawnmower.
  • Buy energy-saving everything. The easiest way to lower your bills – replace those lightbulbs!
  • Buy in bulk. Be sensible about it (i.e. make sure you have space!), and drastically reduce weekly expenditure.
  • DIY. Skill up using YouTube tutorials on plumbing and many other essential services so you never have to pay for simple problems again.
  • Research a lot before making a decision. Most money-wasting is the result of poor preparation and planning. Don’t shirk this part just because you don’t like it!
  • Use your network. Your network is full of resources that can ease the pain of budgeting. Ask for help.
  • Stop and think. Do I really need it?

Unfortunately, there are some things that require plain ol’ giving up for the time being. This can include high-cost sports such as skiing, the latest versions of some technologies, the finest brands of food/drinks, premier seats at the opera and most other indulgences.

What is important to remember during lean times is that when you look back on your life, it will be the experiences that stand out, not the extra comforts.

Living on a budget can teach you a lot about how much you can really get out of your paycheck. We only live one life, so make the most of every penny you earn!

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Featured photo credit: Unsplash via unsplash.com

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