Oxstones Investment Club™You might be surprise to know that millionaires aren’t just good at spending money, they are great at saving it too. So let’s look at how millionaires save money and see if we can learn some tips from them. Their habits could help us form our own good saving habits.
Put Yourself Before Others
When you have a regular income, you should always try to put aside around 10% of your income whenever you get paid. This might sound like a lot but if you save it straight away you will soon get used to doing without it. The remaining money should be enough to cover all your bills and living expenses. If not then try a smaller percentage such as 5% of your income. Millionaires understand the importance of banking money before giving it to anybody else so take this approach to start building up your own savings fund, whether it’s for an emergency fund to help you avoid using a credit card or short term loans like provident loans or guarantor loans. Or whether it’s to save for a luxury treat like a relaxing holiday or a brand new car.
Budgeting
Millionaires do work out a budget – after all even they could get into debt if they spend money in a uncontrolled way. They do cap expenses on all areas of their life, to ensure they are living within their means, albeit their means are much higher than for the majority of us mere mortals. Nevertheless, without a budget anyone’s expenses can go through the roof and empty your bank balance before you know it.
Saving
Wealthy people love saving money but, of course, it’s much easier for them to do so as they have so much more coming in. Some high net worth individuals are thought to save over 50% of their earnings, and that’s before we take any of their investment income into account. Savings are different to investments, because they are risk-free and provide a level of security. Getting used to saving regularly means building a secure financial future for you and your family.
Being Frugal
Did you know that Mark Zuckerberg drives a regular family car, or that Beyonce uses freebie makeup and jewellery? So even the super-rich can be frugal and it’s frugal habits that will help you save money and hang on to those savings.
Avoid Impulse Buys
We’ve all been there – in a situation where we have been tempted to spend money on impulse buys – often things we know we don’t need. Impulse buys are the sort of impractical items that won’t stand the test of time and will soon lose their appeal. Yet they can be so appealing at first. Always try and remind yourself of the difference between your wants and needs when you are in this sort of situation. Nobody needs thirty pairs of shoes and ten handbags.
Remember, you might not have millions in the bank but your finances will likely be much healthier if you follow these good habits of millionaires.
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