The tag of the richest and most powerful people on the planet is attached to software giants, legendary investors, telecom tycoons, and captains of retail and industries. However, despite having a high net worth and ability to acquire anything they want, such individuals still do their own haircut, use public transport, and fly economy. Warrant Buffett, one of the wealthiest humans pays for McDonald’s food with coupons, Mark Zuckerberg is comfortable driving in his hatchback in hoodies and jeans, while Mexican telecom tycoon has lived in the same house for forty years despite holding the title of being the richest man in the world three years in a row. While these may be viewed as quirky habits of the rich and famous, they represent the ways these billionaires acquired and retain their wealth. In a country where a good percentage of the population is facing some kind of debt, Lottoland investigated the money saving strategies of the super
rich highlighting how they accumulate and manage their wealth efficiently, effectively, and prudently.
Live Simply and Within Your Means
Warren Buffett has been living in his house since the late 1950’s when he purchased it for an average of $30,000. You bet he can afford a mansion in the most serene environments of the globe but he chooses to live simple. Carlos, Mexican business magnate, follows the same principle of living frugally and encourages his employees to emulate the same principle. The secret is to live within simply on what works best for you. It is best to invest money in things that generate wealth
as compared to spending it on small fortunes like shoes, clothes, or a house that leaves you in debt for the rest of your life. Even if you will not make to the top 10 list of the richest people in the globe, living simply will help you maintain your wealth and manage it prudently.
Keep Watch on Your Spending Habits
What you do first with your paycheck determines whether you will generate wealth or debt. While a vast majority spend before saving, the golden rule as learnt from the world’s richest people is to save before spending. Apply the 50-30-20 rule where you allocate your paycheck to bills, savings, and entertainment. This rule will ensure that you have enough money to meet your obligations while building wealth through savings. According to Bill Gates, people’s spending instincts are set when in high school, which determine how you spend your money in the future
Clip Coupons on Purchases
Clipping coupons is one of the greatest way to stretch your income without spending from your pocket. The extra pound you spend could be invested in other important things that generate money in the logrun. While you may not have time to go full extreme couponing, doing it occasionally helps to cover a percentage of your purchases. Do not look at coupons as definition of poverty but as a means of spending money wisely. After all, Buffett clips coupons at McDonalds. Furthermore, coupons and discounts will allow you to own a few luxuries at the lowest cost.
Maintain a Budget
A budget is one of the most financial flow to help keep your cash inflows and outflows at bay. With a budget, you will be able to breakdown your expenditures and allocate finances to each expense without going over bond once the money allocated to that expense depletes. In a cashless economy, the temptation to use credit cards is higher. However, credit cards will cripple you financially due to the high interest rates involved. Purpose to pay for items in cash to help maintain a healthy cash flow
. When it comes to major financial decisions like the type of car to drive, it is important to evaluate the pragmatism of transportation methods available. Vehicles depreciate fast with the estimated depreciation rate at 25% annually. Go easy on the upfront cost and try to keep your wheels on the road for as long as you can.
Saving Money is easier than it seems
Anyone can wield wealth wisdom from these tips. What is great about these tips is that they are helpful no matter your financial situation. Nome of these millionaires is telling you to invest in real estate or play your hard-earned money in the stock market. Instead, they all offer simple and straightforward budgeting lessons to increase your net worth and reduce your debt.