If you are from one of those who always dreams of becoming a millionaire and you keep buying the lottery, stop wasting your time and your money.
To get rich, you must learn from those who started with nothing and have managed to have money in abundance.
Do you know that most of the millionaires today are self-made millionaires? Those millionaires are the ones who made it to the top without getting much inheritance from their parents.
So, how did those self-made millionaires grow their wealth?
They grew it like any one of us would; they worked hard, got multiple sources of income and of course, saved their hard-earned money.
That’s right. Despite having a huge amount of net worth, They know how to save money. Maybe some of these millionaires are better than you when it comes to saving money.
15 Things Millionaires Do To Save Money
1. Pay first and then spend
The expression “pay first” means that before spending their money, millionaires separate a portion to save and invest. With the rest of their income, they make their expenses.
If you are one of those who saves money when you have extra, most likely you do not have much in your piggy bank.
If you want to become a millionaire, start today to separate money for your savings and investments fund.
2. Millionaires follow a budget.
Even millionaires know that having a budget is essential for them to organize their finances properly and find out where their money is going to.
They want to know if they are utilizing their money well. All because they hate to see their hard work go to waste.
3. Live below their means.
Most millionaires don’t like to brag their net worth and show off to other people. You can learn this from the book: The Millionaire Next Door.
Here’s an excerpt from that book on how typical millionaires like to spend on their suits.
First, Johnny, Mr J.G., from our audience wants to know: “What’s the most you ever spent for a suit of clothing?”-From The Millionaire Next Door Book
“The most I ever spent…the most I ever spent including the suits bought for myself and for my wife, June, and my sons, Buddy and Daryl, and my girls, Wyleen and Ginger the most I ever spent was $399,” said Johnny.
That’s right. Not all millionaires buy expensive clothing; some don’t see the point of spending too much on a single suit.
4. Millionaires have a good credit score.
Millionaires 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 won’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.
5. Millionaires have an investment portfolio.
Millionaires 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 millionaires know that it’s the best way that they could do to grow their wealth over time.
Investing is also one of the reasons why millionaires don’t have to work so hard for years and are able to retire comfortably without any worries about their finances.
6. Look for ways to save more money.
The millionaires can be frugal, but they know that in order to advance they not only have to look for ways to save money but also to earn more.
This also comes down to the difference between an abundance mentality and a shortage mentality: if they want more money for something millionaire.
They will look for a way to earn more money to pay it, instead of trying to save as much as they can. The millionaires do not see money as a limited resource; they look for opportunities to have more.
7. Know their financial problems
When it comes to money, millionaires know how they earn it and how they spend it.
They want to know exactly what is happening with their money, the good and the bad because you can only solve a problem if you know it exists.
Once you realize that something is not working, you can take steps to improve it.
8. Know your expenses
Another good habit of millionaires is that they record every expense they make. They write down all their expenses in a notebook, on an Excel spreadsheet, or in any way they carry their budget in writing.
They do not trust their fabulous memory to remember how much they spent and in what. If you are someone who has a “mental budget” but you never put it in writing, We recommend that you change this habit.
9. Take care of their things.
People who take care of their things are the ones who are able to save more money because they don’t have to buy the same thing over and over again.
A good example of a thing that should be taken good care is a car.
Having a car is a great thing.
Of course, it is. The only thing bad about it is once you purchase one of your own, it will only decrease in value. That’s why you shouldn’t be buying a new car every year or two and sell it. You wouldn’t be able to get the amount that you paid for it if you’ll use it for a couple of years.
This is not only applicable to automobiles, but also to every material thing that you have.
Warren Buffett, one of the top ten richest men in the world today, drives only one not-so-luxurious car. A Cadillac DTS that he bought years ago. Now, that’s frugality at its best.
10. Millionaires pick the right partner.
Getting divorced can be very costly for some, and sometimes your ex-wife or ex-husband could get everything that you worked for with the help of a great attorney.
What’s the best thing you can do to avoid that?
It’s to find the right lady or a man to marry and be with each other for the rest of your lives. Don’t tie the knot with someone you’re not compatible with, especially when it comes to your finances because it might end up into a disaster when you two begin living in a single household.
Always remember that marriage shouldn’t be rushed and must be taken seriously by both parties involved.
11. Do family planning
Having a child can be quite expensive, and it’s going to be more costly as he or she or they grow older. Just think about it if you’re going to have a lot of children, but you only got one source of income.
Do you think you’ll be able to provide good care and education to them?
That’s why you need to know the number of children that you could have that your household’s income can sustain and not follow the number of children that you want, especially if you want more than three children, sometimes having just two can be costly for some couples too.
12. Have multiple sources of income
You need at least two or three sources of income, or more, whether you want children or not. The good idea is to get two sources of income for every child that you have or want to have.
That way you will be able to sustain their needs and if your finances allow some of their wants too.
It’s also an excellent way to become rich because most wealthy people in the world don’t rely on a single source of income. They have many that’s why they were able to accomplish their life goals.
13. Invest time in planning your financial future
As they invest their time in planning their goals, they also spend time and resources in planning their financial future.
How many people are up to date with the chapters of their favourite television shows, but they have never devoted an hour of their weekend to plan their expenses and financial objectives.
If you want to become a millionaire, it must become a priority for you to learn to manage your money, invest it and make it grow.
14. Live without debt
Your salary is the number one tool you have to accumulate wealth and make it grow. When you have all your money committed to paying your debts, it is impossible to thrive economically.
However, thanks to marketing, we have been sold the idea that to thrive you have to pay everything on credit and use the credit card.While you continue to finance from the refrigerator to the car, you will not have the money to prosper.
15. Be frugal
Contrary to popular belief, millionaires are frugal people. They live a simple life and consume in moderation. Do not succumb to pressures to shield your neighbour with a better car or trips to exotic destinations.
They are careful with their expenses, they satisfy their needs, and they moderate themselves by spending on required things.
Millionaires are normal people just like us who know how to value their money and use them properly. They are also way richer than us in saving money.
Now, have you done some of these money-saving ways that millionaires do? What are those specifically?