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Wealthy People Save Money Like This

Wealthy People Save Money Like This

There’s no one among us who does not like to have more money. If you sometimes wonder about how the rich and successful have so much of it though, you need to read on. We have compiled a list of hacks that you can apply in your daily life to save money the way wealthy people do.

1. Be careful about small expenses

All of us are usually careful about making big investments and huge purchases. However, we tend to spend recklessly on seemingly small expenses.

But of course, these small expenses can amass to a big amount.

As Suze Orman rightly pointed out, “Look everywhere you can to cut a little bit from your expenses. It will all add up to a meaningful sum.”

2. Focus on the future

It is very easy to spend money for getting something that we like but at the end of the day, you will end up spending everything no matter how well you earn. Shift your focus to the future instead of getting satisfaction in the present.

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“You can be young without money, but you can’t be old without it.” – Tennessee Williams

3. Don’t buy unnecessary things to make an impression on people

Although we all like to have good feedback from our peers and friends regarding the things we own, we need to set a limit for us. You should buy things that you need but don’t just buy those to impress others. Otherwise the sky isn’t the limit for buying things!

“Stop buying things you don’t need, to impress people you don’t even like.” – Suze Orman

4. Put things in black and white

There are so many expenditures in today’s world that you would end up without any savings if you don’t plan and budget your money; the inflows and the outflows. Wealthy people know where their money comes from and where it goes.

An Excel sheet can really help you in this regard.

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“A budget is telling your money where to go, instead of wondering where it went.”- John C. Maxwell

5. Work hard

Unlike the common perception that wealthy people just have fun and enjoy their life, the reality is that they work harder than the common person, at least in the most productive age. So try to increase your income, and when it gets increased, save a larger portion of it than ever before.

“I like business and the truth is I save way more than I spend. I invest. I plan for the future. I have a special eye for opportunities and work harder than anyone might expect.” – Sofia Vergara

6. Save a huge portion of your income

Again, we think that wealthy people are always splurging and spending on things. No, they are not. That is why they remain wealthy.

They always save a portion of their income. So save a large proportion of what you get. This will ensure that you do not run out of money at any point in time.

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“Save one-third, live on one-third and give away one-third.” – Angelina Jolie

7. Make the most of sales and bargains

Just like us, the rich love to get the highest value of money. They always try to look for getting more value through finding great deals, bargains and discounts.

“Why should you pay more for something that someone else is paying less for?” – Sarah Michelle Gellar

8. Invest your savings wisely

We usually ignore the small amounts but such tiny amounts can add up to a substantial sum. If you have more, it is even better. To top it, if you invest the money properly, you will be amazed at the result yourself.

“A penny here, and a dollar there, placed at interest, goes on accumulating, and in this way the desired result is attained. It requires some training, perhaps, to accomplish this economy, but when once used to it, you will find there is more satisfaction in rational saving than in irrational spending.”  – P. T. Barnum

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9. Practice the Millionaire’s Formula

A common man’s way of thinking is usually that he saves after meeting the necessary expenditures. A wealthy person’s style is the opposite: we like to call this the Millionaire’s Formula.

Here’s how it goes: upon receiving your income, put a certain percentage towards giving back to the community, and also a certain percentage for your investments for your financial goals. Only spend what is left.

“Do not save what is left after spending, but spend what is left after saving.” – Warren Buffet

10. Close leakages

The wealthy don’t ever pay any unnecessary charges. They remain very careful about the fees and charges that can be avoided.

“Beware of little expenses; a small leak will sink a great ship.” – Benjamin Franklin

Follow these simple, practical tips in your life and you will be able to see the difference yourself. Happy savings!

Featured photo credit: DSC04319-B.jpgBy DodgertonSkillhause via cdn.morguefile.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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