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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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Published on January 8, 2021

How To Pay Off Credit Card Debt Fast: 7 Powerful Tips

How To Pay Off Credit Card Debt Fast: 7 Powerful Tips

Ever wondered whether your credit card debt is the reason you’re in a bad financial situation? You can’t enjoy any fun activities because a good chunk of your money goes toward debt payment. Heck, you’re even behind on some of your monthly bills.

The effects of clumsy debt management are too many to list here. This guide is going to help you discover how to pay off credit card debt fast and start chasing your financial goals.

Debt problems are the last thing anyone wants to encounter. But things can get out of hand when all the “little debts” you take accumulate in interests.

What if you knew some simple and proven ways to be debt-free quickly? Implementing them would mean better financial health for you. It becomes possible to free up cash for your “wants.” These include taking a trip or buying something you’ve always desired. All that while paying your bills on time!

Let’s not wait any longer. Here are 7 powerful tips for paying off credit card debt fast:

1. Pay More Than the Minimum Credit Card Payments

Many people only pay the monthly minimum on their credit cards. Truly, that’s the right amount for staying on good terms with your credit card company. But you need a different approach if you’re looking to achieve financial independence within a short time.[1]

Most of your payments go toward interest costs when you only pay the minimum amount. A substantial sum of your balance remains standing. As a result, it becomes more expensive to eliminate your debts.

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You don’t want to wait more than 10 years to get rid of debt while it’s possible to do it sooner. All you have to do is double that $100 minimum payment to $200 or go higher.

The good thing is that minimum credit card payments are affordable in most cases. By paying a higher amount, you reduce your interest costs, lessen your borrowing period, and boost your credit score.

2. Start With High-Interest Credit Card Debt

If you have more than one credit card debt, prioritize putting the extra money toward the ones with the highest interests. This debt pay-off strategy, known as the debt avalanche method, is essential for being debt-free quickly.[2]

First, you need to list down all the credit card debts you have in the order of their interest rates. Next, you choose the one with the highest interest and pay a significant amount toward it each month. It can be an amount twice or even thrice larger than the minimum payment.

At the same time, you make monthly minimum payments on the other debts. Their interest charges won’t be as costly as that of the first debt on your list. You only move on to the next high-interest debt after the first one is gone. Remember that your focus is on the interest rates and not the balances.

3. Revisit Your Budget

Budgeting is useful for tracking your financial moves. Once you create a budget, some tweaks along the way can make it work for you better. One situation that requires you to revisit your budget is when you’re struggling with debts. It might hurt a bit to slash some expenses. But you also don’t want to miss out on achieving financial freedom in the long run.

You can reduce some variable expenses to free up more cash for credit card debt payments. They’re the ones that change from time to time. Some examples are groceries, fuel, and clothing.

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Other opportunities for cutting down your spending lie in non-essential expenses. Instead of dining out all the time, you can cook at home more to save money. You can also share some subscriptions with friends and pay a fraction of the cost.

If you’re determined enough, you can eliminate all your unnecessary expenses and focus on paying off your credit card debt first.

4. Avoid Using Your Credit Cards

Do you want to know how to pay off credit card debt with a low income? One simple way is to stop using them. Having your credit cards everywhere you go means that you’ll be more tempted to buy unnecessary stuff. In this case, you spend money that you don’t really own and get deeper into debt.

The quickest fix to stop the debt build-up is spending with cash. You’ll be more aware of everything you can afford at any particular time. If you decide to keep one or two cards to ease the transition, always make wise choices. For instance, only use them when experiencing financial difficulties.

It’s best to categorize your fun activities under “discretionary spending” in your budget. This way, you won’t need more debt to kill your boredom. By halting your credit debt from accumulating, it’s easy to pay down what you already owe and be happy with the progress.

5. Start a Side Hustle to Boost Your Income

You’re probably turning away a lot of money by not monetizing your skills. Everyone has something that they’re good at doing. And you can use that to generate extra income for attacking your credit card debt.

If you look around your neighborhood, you can find several side hustle opportunities. It can be pet sitting, tutoring, or lawn mowing. You can start an online business by offering services such as digital marketing, content creation, and web development. Such skills go in high demand on freelance sites and job boards.

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Finding clients on social media is also a good strategy to utilize your skills and make more money. Facebook groups, Quora Spaces, and subreddits are some places to look for side jobs. You only have to join a niche-specific platform, share your services, and respond to any opportunities.

It’s possible to learn a skill, practice it, and earn from it. Use the free resources online or purchase some e-courses to get started.

6. Sell Your Used Items for Extra Cash

Starting a side hustle isn’t the only way to generate extra money. You can turn unwanted items into cash for paying off credit card debt. Whether it’s an old TV, book, or furniture, there is always someone itching to buy your used stuff.

A garage sale, as much as it’s old-fashioned, is perfect for getting your neighbors and passers-by to buy from you. You keep all the money because there are no business permits or taxes involved. While you may not make much cash, it’s better than leaving your stuff to go defunct in your storage.

Other than that, you can sell your used stuff on online marketplaces. Facebook groups are great places to start if you want quick approvals and hence sales. You only have to ensure that your listing follows Facebook’s commerce policies.

When selling any pre-owned items online, ensure they’re in good shape to avoid problems with your buyers.

7. Know When to Seek Help With Your Debt

Asking for help with your credit card debt can be challenging to do. But letting it drown you is a road you don’t want to take. While you may feel embarrassed at first, it’s the best way to get back on track when you run out of options.

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There are tons of non-profit credit counseling organizations that can offer you free guidance on how to escape the debt trap. An example is The National Foundation for Credit Counseling. They simply review your finances and help you determine the source of your financial problems. After that, they match you with an actionable debt management solution.[3]

In extreme cases, the debt solution can be:

  • Debt relief – where your debt is partially or wholly forgiven
  • Debt consolidation – taking out one loan to repay others
  • Debt settlement – the creditor forgives a significant portion of your debt
  • Bankruptcy – legal process for seeking relief from some or all your debts

It’s necessary to carefully weigh your options before deciding on the way to go. Find out how it might affect your credit score and any other risks.

Wrapping It Up

Debt is a major setback when you’re trying to prosper in life. Paying off credit card debt is essential if you want to reach your financial goals. That means having more free income, a good credit card score, and even a chance to retire early. You become more productive each day because of the peace in your mind.

So, you now have some tips on how to pay off credit fast. Go ahead and get rid of that good life progress killer!

More Tips on How to Pay Off Debt

Featured photo credit: rupixen.com via unsplash.com

Reference

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