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Money-Saving Tips From Billionaires That Everyone Should Know

Money-Saving Tips From Billionaires That Everyone Should Know

You shouldn’t listen to advice from just anyone. But if the money tips are coming from billionaires who’ve earned their own fortune, they’re probably worth a listen!

Here are some valuable pieces of advice to set you off on your path to your first billion.

Pay yourself first

What do you do first when you receive your paycheck: spend first and let the remaining be your savings? Or do you save before you spend? If you’re spending first, maybe that’s one of the reasons you are having trouble saving your money.

How could that be? You need to do it the other way around, and save before you spend. You must pay yourself first before you pay your bills or buy something you need.

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Paying yourself first before spending will make sure that you have a good amount of money saved every month. You can save at least 10% of your monthly income for starters and use the remaining 90% to cover your monthly expenses. You can even save more depending on the budget that you have set up.

Keep your home simple

Billionaires can afford to live in the most exclusive mansions imaginable—and many do. Just look at Bill Gates’ sprawling 66,000-square-foot, $147.5-million mansion in Medina, Washington. Yet frugal billionaires like Warren Buffet choose to keep it simple. Buffet still lives in the five-bedroom house in Omaha that he purchased in 1957 for $31,500. Likewise, Carlos Slim has lived in the same house for more than 40 years.

Use self-powered or public transportation

Thrifty billionaires John Caudwell, David Cheriton, and Chuck Feeney prefer to walk, bike or use public transportation when getting around town. Certainly these wealthy individuals could afford to take a helicopter to their lunch meetings, or ride in chauffeur-driven Bentleys, but they choose to get a little exercise and take advantage of public transportation instead. Good for the bank account and great for the environment.

Keep your scissors sharp

The average haircut costs about $45, but people can and do spend up to $800 per cut and style. Multiply that by 8.6 (to account for a cut every six weeks) and it adds up to $7,200 per year, not including tips. These billionaires can certainly afford the most stylish haircuts, but many cannot be bothered by the time it takes or the high price tag for the posh salons. Billionaires like John Caudwell and David Cheriton opt for cutting their own hair at home.

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Buy your clothes off the rack

Some people, regardless of their net value, place a huge emphasis on wearing designer clothes and shoes. But frugal billionaires decide it’s simply not worth the effort or the expense. You can find David Cheriton—the Stanford professor whose early investment in Google made him a billionaire—wearing jeans and a t-shirt.

Ingvar Kamprad, founder of the furniture company Ikea, avoids wearing suits, and John Caudwell, mobile phone mogul, buys his clothes off the rack instead of spending his wealth on designer clothes.

Skip luxury items

It may surprise you, but the world’s wealthiest person, Carlos Slim (the same guy who could spend more than a thousand dollars a minute and not run out of money for one hundred years) does not own a yacht or a plane. Many other billionaires have chosen to skip these luxury items. Warren Buffet also avoids these lavish material items. “Most toys are just a pain in the neck,” he’s said.

Billionaires follow a budget

Even billionaires know that having a budget is important for them to organize their finances properly and find out where their money is going. They want to make sure they are utilizing their money well and not wasting their work.

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Billionaires  have a good credit score

Billionaires  are not fond of borrowing money. Unless it’s something they would need and benefit from, like starting another business or expanding their business, they wouldn’t apply for a loan.

That’s one of the ways they can get their application approved easily. Another one is because they have a high credit score that makes them a low-risk investment to most lending companies.

Billionaires  have their own investment portfolio

Billionaires invest their money. They know that getting an ordinary savings account to help them in growing their saved money is not a smart decision. They chose to be investors because billionaires know that it’s the best way to grow their wealth over time.

Investing is also one of the reasons billionaires  don’t have to work so hard for years, and are able to retire comfortably without any worries about their finances.

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Billionaires are not that different from us. They’re just people who know how to value their money and use it properly. Oh, and they are also way richer than pretty much all of us.

Now, have you done some of these billionaires’ money-saving tips? Which ones?

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Published on November 5, 2020

8 Best Finance Apps For Effective Budget Tracking And Planning

8 Best Finance Apps For Effective Budget Tracking And Planning

Looking for ways to effectively track, plan, and manage your budgeting? Well, there is a multitude of apps for that! Finance apps are the best options around for tracking and planning your budget and keeping you accountable. After all, using a pen and paper can make it cumbersome to track.

The apps that we’ve listed below do a ton of the heavy lifting for you and provide a wide array of functions to help you with your financial needs.

How to Pick a Suitable Finance App

When looking at some of the best finance apps that are ideal for budgeting, we found these particular features to be important. Keep these in mind when looking for ideal finance apps.

  • User interface – Navigation is key in any circumstances of an app. This is especially true for helpful apps like finance apps. You want to be using them regularly. As such, the interface should be simple to navigate.
  • Habit building – Finance tracking is all about building money habits, and apps have unique ways of building those habits. There is the app itself but features like push notifications are also essential in some circumstances.
  • Syncing – You should be able to connect your bank account to these finance apps, and that process should also be pretty easy to do, too.
  • Usefulness – The number of features that the app has should be relevant and make it something you want to check. Sure, some of these finance apps work in the background, but those on this list help significantly when you check them regularly.
  • Data presentation – The number of reports and analytical data is a core focus for these finance apps as well since it allows you to make sound financial decisions.

1. Best Finance App Overall – Mint

    If you’re looking for an overall quality finance app, Mint is the first that comes to mind. It’s one of the most well-known personal finance apps around and for good reason. It provides you with a complete financial picture all in one place.

    By connecting your debit and credit cards to your account, Mint will provide you with a list of transactions and break them into categories, showing you exactly where you are spending your money. You can also track billing and create a budget on the app to help you stay on track of your savings goals.

    A new feature that Mint rolled out recently is the ability to see your credit score. Through this feature, you can also see the factors that are contributing to your credit score. Beyond that, you can also track investments and schedule routine utility payments.

    Download Mint here.

    2. Best Finance App for Debt Management – YNAB

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      You Need A Budget (YNAB) is an app that is built on four rules:

      1. Give every dollar a job.
      2. Embrace true expenses.
      3. Roll with the punches.
      4. Age your money.

      Based on these four rules, the app will help you build a better budget while also allowing you to gain control of your spending. You can import transactions from your checking account and apply them to each budget category to get an accurate look at your spending.

      This app also provides detailed reports to show you your spending habits while you are striving to keep a balanced budget in the various categories. YNAB will also point out other spots that you can improve your spending.

      According to YNAB, the average user will save about $600 in the first two months and can save over $6,000 in the first year. It sounds promising for a debt management app.

      Download You Need A Budget here.

      3. Best Wealth Management App – Personal Capital

        Another solid choice is Personal Capital. It focuses on wealth management but also serves as another personal finance app. Through this app, you can manage assets and investments along with setting up a budget for everyday spending accounts.

        This service integrates with over 14,000 financial institutions, allowing you to link your bank account(s) directly to the app and through it. By linking your bank account to the app, you can track your spending, too.

        That said, the app really shines when you connect it to your investing accounts. By doing so, you have a convenient spot to track your portfolio by account, asset class, or individual security. The app can also show you opportunities to diversify, manage risk, and find any hidden fees that you could be paying.

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        You can also compare your own portfolio to the major market benchmarks to help you keep track of whether you’re on track to reaching your goals. You can also get financial advice from this app as the financial advisors here are registered and can provide you with advice tailored to your goals.

        Download Personal Capital here.

        4. Manage Your Subscriptions – Clarity Money

          One of the popular business models that companies are moving to these days is subscription-based. While this model does have its merits, one of the many problems that we face with this model as consumers is that we find ourselves subscribed to things we don’t need. Paying for a streaming service is nice, but many people often are subscribed to multiple streaming services.

          Because it’s so difficult to remember and even track all the subscriptions we’re paying for, this particular app can provide us with clarity. Clarity Money is all about bringing to light what you are paying for and providing you with a convenient way to cancel and throw away unused subscriptions you’re not using.

          Beyond removing unnecessary subscriptions, the app also looks at your spending behavior and offers suggestions for ways to improve your financial health. You can even make deposits to your savings account through this app.

          Download Clarity Money here.

          5. Best Bill Paying App – Prism

            If you’re looking for a convenient app that shows all of your bills and financial apps, this is the app for you. Prism takes pride in having 11,000 billers on this app. This is the highest amount of billers on bill-paying apps you can find. From billers like large banks to even small utility companies, chances are high that the company you’re paying for accepts this app.

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            In terms of actual function, you can add your bills to the app and the app will then automatically track it. It’ll send you date reminders to pay the bill as well so you won’t get hit with late payments. On top of that, you can schedule payments to be made the same day or several days in advance as well. Prism is a nice app that allows you to pay bills in one sitting without having to log in to several accounts.

            Download Prism here.

            6. Best Shared Expenses Management App – Spendee

              Many of these apps are focused on providing services to a single user. This is natural considering most of these apps are asking for your banking information. However, this is one of the few apps on here that allows multiple people to use it.

              With Spendee, the idea is to create shared wallets with your friends and family that you can then use to manage shared expenses for a household budget. You will need to get bank transactions for this to work, but that is fine. After that, the app will categorize all of the transactions and tally how you’re spending money every month.

              You’ll be able to add cash expenses manually as well for accuracy. Beyond those features, you’ve got bill tracker functionality to ensure you pay your bills and avoid late payments. There is also a budget component that will allow you to save and ensure you don’t overspend.

              Download Spendee here.

              7. Best Visuals on Finance App – Mobills

                Mobills is another bill management app that offers a great presentation of information. The app focuses on bill management and offers typical features you can find in these apps. These include categorizing your bills, paying them through the app, and setting up budgets to ensure you stick to them.

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                That being said, Mobills delivers these features remarkably. It presents you with charts that are completely interactive and can help you analyze your financial life. Also, moving bills to various categories is easy and smooth to do.

                Download Mobills here.

                8. Best Finance App for Budgeting Overall – EveryDollar

                  Dave Ramsey is a personal finance expert who urged people to follow a zero-based budget method. This method is the idea that every dollar serves a purpose in your budget. It’s this concept that has inspired the name of this app: EveryDollar.

                  With that in mind, the app provides a monthly expense tracker that you can connect your bank account to. This will take note of important transactions to ensure your spending is in check. You can even split expenses between multiple budget items. The tracker also provides you with an overview of how much money you’ve spent this month and what you’ve got left.

                  Staying true to the name, EveryDollar also has a money management aspect that will help you set up a money management plan. You’ve got access to money management experts who will guide you through financial planning.

                  Download EveryDollar here.

                  Final Thoughts

                  Many financial apps are available to help you achieve your financial goals. Each app has its own perks and benefits to consider. The nice thing about many of the apps on this list is that they have free trials that allow you to get a good feel of them before fully getting them.

                  More Finance Apps

                  Featured photo credit: Austin Distel via unsplash.com

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