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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 January 21, 2020

How to Develop a Millionaire Mindset in 6 Simple Steps

How to Develop a Millionaire Mindset in 6 Simple Steps

We all like to dream about being financially wealthy. For most people though, it remains a dream and nothing more. Why is that?

It’s because most people don’t set their mind to achieving that goal. They might not be happy in their current situation but they’re comfortable – and comfort is one of the biggest enemies of growth.

How do you go about developing that millionaire mindset? By following these simple steps:

1. Focus On What You Want – And Take It!

So many people are too timid to admit they want something and go for it. When there is something that you want to accomplish don’t think “I could never actually do that”, think “I could do that and I WILL do that”.

Millionaires play to win, not to avoid defeat.

This doesn’t mean to have to become a selfish jerk. What it means is becoming more assertive and honest with yourself. You don’t have to grab off other people. There is a big pot of unclaimed gold in the middle of the table — why shouldn’t you be the one to claim it? You deserve it!

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2. Become Goal-Orientated

It’s almost impossible to achieve anything if you don’t set firm goals. Only lottery winners become millionaires overnight. By setting yourself attainable goals, you will get there eventually. Don’t try to get rich quickly — get rich slowly.

Let’s take the idea of making your first million dollars and expand on what kind of goals you might set to get there. Let’s also say you’re starting at a break-even position – you’re making enough to get by with a few luxuries, but nothing more.

Your goal for the first year can be having $10,000 in the bank within a year. It won’t be easy but it is doable. Next, you need to figure out the steps you need to take to achieve that goal.

Always look at ways to make growth before cutbacks. With that in mind, you might want to see if you can negotiate a pay rise with your boss, or if there’s another job out there that will pay better. You might be comfortable in your old job but remember, comfort stunts growth.

You may also have other skills outside of your workplace that you can monetize to boost your bank balance. Maybe you can design websites for people, at a fee of course, or make alterations to clothes.

If this is still not enough to make the money you need to save $10,000 in a year, then it’s time to look at cutbacks. Do you have a bunch of old junk that someone else might love? Sell it! Do you really need to spend $10 on your lunch everyday when you could make your own for a fraction of the cost?

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If you are to become a millionaire, you need to start accumulating money.

Here’re some tips to help you: How to Become Goal Oriented and Achieve More in Life

3. Don’t Spend Your Money – Invest It

The reason you need to accumulate money is for step three. Millionaires tend to be frugal people, and that’s because they know the true value of money is in investing. Being your own boss goes hand-in-hand with becoming a millionaire. You’ll want to quit your regular job at some point.

Stop working for your money and make your money work for you.

Rather than buying yourself a new iPad, that $500 could be used to invest in the stock market. Find the right shares (more on that later), and that money could easily double within a year.

There’s not just the stock market — there’s also property, and your own education.

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4. Never Stop Learning

The best thing you can invest in is yourself.

Once most people leave the education system, they think their learning days are over. Well theirs might be, but yours shouldn’t be. Successful people continually learn and adapt.

Billionaire Warren Buffet estimates that he read at least 100 books on investing before he turned twenty. Most people never read another book after they’ve left school. Who would you rather be?

Learn everything you can about how economics works, how the stocks markets work, how they trend.

Learn new skills. If you have an interest in it, learn everything you can about it. You’d be surprised at how often, seemingly useless skills, can become extremely useful in the right situation.

Start developing the habit of learning continuously: How to Create a Habit of Continuous Learning for a Better You

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5. Think Big

While I advise to start off with small goals, you absolutely should have a big goal in mind. If you have a business idea, then that is your ultimate goal – to start that business and make a success of it. If you want to invest your way to millions of dollars and do little work other than research, then that is your big goal.

There is no shame in not achieving a big goal. If you run a business and aim to make $1 million profit in a year and “only” make $200,000, then you’re still significantly ahead of most people.

Aim for the stars, if you fail you’ll still be over the moon.

6. Enjoy the Attention

To be successful, you have to be willing to promote yourself and enjoy the attention to a certain extent. Now the attention doesn’t need to be on yourself, it could be on your brand, but attention definitely attracts money.

Never be embarrassed to get your name out there. That means finding a spotlight and being brave enough to step right up underneath it.

If you run a business, try contacting the local papers. You’d be surprised at how amenable they often are to running a story about you and your business, and it’s all free publicity.

Above all, remember: You control your own destiny. Push hard enough for anything and you’ll get it.

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Featured photo credit: Austin Distel via unsplash.com

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