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.
“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.
“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.
“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
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!