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Everyone Should Know About These Money Saving Tips from Billionaires

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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.

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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 July 20, 2021

Financial Freedom is Not a Fantasy: 9 Secrets to Get You There

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Financial Freedom is Not a Fantasy: 9 Secrets to Get You There

Have you ever considered your life now, and how it would be if you had more time to spend with your family and less worries about money?

Nowadays, financial stress is one of the most troublesome weights in life. If you’ve ever encountered financial stress, you know the difficulty of not having enough income to pay your obligations or bills.

Many people say that money is not the ultimate goal of life. While that’s true, money certainly plays a very significant role. The meaning of financial freedom changes with the different phases of our life, but ultimately, it is something that many people strive for.

In this article, we’ll explain how to capture that financial freedom you’ve been looking for. Read on to learn the secrets to financial freedom.

Break Free of Your Finances

Financial freedom is about having a constant flow of cash from your assets to cover all your regular needs.

When you are not worried about your income, or living paycheck to paycheck, you gain a great sense of freedom. It’s the freedom to be obtain and do what you truly need to make your way through everyday life.

Gaining financial freedom, though, is a process of growth, making small improvements and gaining emotional strength.

Though it seems hard to believe, it is really very simple to get financial freedom.

To do so, you simply need to make sure that your assets exceed your liabilities. In other words, you’ll need to find the sweet-spot where your residuals meet or surpass your expenses. This is something that you can achieve with the proper plan.

While not every person will accomplish financial freedom, the potential for anyone to do so is certainly there. Anyone can achieve this success, regardless of their income level.

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Outlined below are 9 secrets that will help you in your goals of achieving financial freedom.

1. Stop Unnecessary Spending

We often spend money inwardly, instead of objectively.

For example, you may spend when you’re anxious, depressed, restless, exhausted, from fear of missing out, or to please others. This is a very unhealthy way to handle your finances.

To stop this habitual spending, log down all your spending over the course of a month.

Just as some people keep a food diary, keep an expense diary. Remember not to just write down how much and what you spent the money on, also include the circumstances of why you spent the money. Was it an impulse buy at the checkout line or was it something you planned to purchase?

This increased self-awareness could enable you to avoid triggering situations in the future when you are considering an impulse buy.

2. Plan a Monthly Budget

This is a great opportunity to get serious.

Take a seat with your spouse or partner and make a monthly budget based on your income, not your expenses. You are never again going to spend more cash then you have on hand.

Overspending is the thing that led you to more financial obligations. Make sure you decide every month what is coming in and what will be going out and stick to that budget… no matter what.

3. Cut-up Credit Cards

Perhaps you are the type of person who always pays your credit card balance in full before the end of your billing cycle, and enjoys the reward points you gain. If this is the case, then you’re already way ahead of the game.

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If not, you may want to consider ridding your life of the burden that credit cards bring.

Many cards have strategies set up so that if you make a certain number of late payments, they will raise your interest rate much higher. This can really add up in the long run and you won’t be doing your financial situation any favors. If you’re prone to late payments or have a large balance due on your cards, cut them up!

Without proper self control on credit card spending and payments, you are basically throwing your money away. To ensure that you have better control over your spending, use only cash or debit for all future purchases (and don’t forget to pay at least your minimum payment on your cut-up cards each month!).

4. Increase Savings

There is no doubt that for a comfortable retirement you must accumulate satisfactory savings throughout your working life.

It’s good practice to save up to 15% of your income.

Start with your workplace 401(k), if you have one. If not, a Roth IRA (if you are eligible) or a traditional IRA (if you are not eligible for the Roth) are the next logical steps.

Increase in longevity means you might be able to look forward to 25 to 30 years in retirement, or possibly even significantly more. Investing now in good retirement plans will ensure that you have a guaranteed a stable monthly income when the time comes to stop working. [1]

5. Invest Wisely

Consider investing in funds.

Specifically, you will gain higher returns if you invest in different types of mutual funds such as Debt funds, Equity funds and Hybrid funds with a proper balance, although it absolutely relies on your personal preferences and sense of risk taking.

To get the most of these benefits, make sure you are investing in a variety of assets. Another resource of investing in mutual funds is SIP (Systematic Investment Plan) where you invest some money every month in funds. SIP works by averaging the per unit price of the stock.

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Mutual fund investors are aware of the benefits of an SIP (Systematic Investment Plan). For one, it is the most secure way to invest in equity mutual plans so that wealth is created over a long period of time. This plan also helps you to gain a better sense of financial discipline, which will come in handy in all your financial endeavors.

6. Invest in Gold

There isn’t really a better way to invest in gold than to have the physical gold itself in your possession.

You can purchase gold coins and bars from mints as well as from coin dealers and other private sellers.

Another way to invest in gold is through ETFs (Exchange Traded Funds).

These are is similar to mutual funds but they are exclusively investments of gold. ETFs are great because they offer more liquidity; the ETF owns the actual physical gold, stores it, and retains the value of the shares. These shares can then be bought and sold in the stock market, and one big benefit is that the transaction costs of gold ETFs are much lower than the that of physical gold.

With its consistently-increasing demand, investment in gold can be very wise long-term investment to make.

7. Stash Emergency Funds

Whether it’s a cash gift or a work bonus, always try to save any extra money that comes your way rather than making unneeded purchases.

If you get paid every other week, you’ll get an “extra” paycheck (three rather than the usual two) twice a year. Either save those paychecks towards your emergency funds or utilize the money to pay down other obligations, such as loans, credit cards or other debts.

Make it hard to get your cash.

Put your savings in an alternate bank, maybe an online bank that forces you to delay for several business days before transferred money hits your regular bank account.

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8. Find Fabulous Mentors

Find a mentor, such as a friend or family member, who has exceptional control over their finances and pay attention to everything they do.

If you do not have any friends or family that are enjoying financial freedom, then find a mentor online! There are numerous blogs and guru websites featuring the advice of many people who have reached financial freedom, and they exist primarily to let you in on how to achieve it for yourself.

There are also plentiful forums available that share tips and tricks on how to best achieve financial freedom. Read as much as you can and start changing your habits for the better.

9. Be Extra Patient

Patience is the key of financial success.

Being patient can be quite tough, especially when you’re struggling with your finances, but having faith is worth it. You’ll continuously be on the right track if you are taking the proper steps above.

So don’t be discouraged, even if you are only saving a few dollars a month; it all adds up. Within just a few years you’ll look back proudly at your accomplishments and be glad that you had the patience to get there.

Financial Freedom for All

Anyone can achieve financial freedom, regardless of their financial circumstance.

Use the tips provided above to get yourself on the track to financial freedom and toss your monetary concerns out the window. If you wish to achieve a life with financial freedom for yourself and your family then you must adopt a disciplined approach towards your finances.

Following the simple secrets above is a great start to making your money work for you, so you can work less and live more!

Featured photo credit: rawpixel via unsplash.com

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Reference

[1] Hartford Gold Group: IRA Retirement Accounts

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