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Monday, July 18, 2016

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8 Frugal Habits That Will Turn You into a Millionaire

Oyetoke Tobi - Monday, July 18, 2016

There are about 35 million millionaires in the world, and not surprisingly, the number keeps increasing every year. One point this fact is proving is that it’s possible you become one, too!

What’s shocking is that some habits are very common to millionaires, every one of them. One out of their many habits is that they are habitual risk takers. They take chances. Some chances do pay off and some don’t. However, notwithstanding, they keep taking chances. 

It’s very rare you become a millionaire overnight. The journey to becoming a millionaire takes time and more importantly, requires hard work. Nonetheless, it’s a dream that is very achievable following these frugal habits.

1. Spend Below Your Means

If you want to become a millionaire, you had better know the best decision to make when it comes to purchasing luxurious items. Do you honestly need to buy a mansion or have a luxurious car in your garage? Of course, having status items like these are enjoyable, but the incredibly rich, instead, ignore luxury to extend their wealth. You will want to follow this habit if you desire to become a millionaire.

2. Stop Paying Full Price

The wealthy use more coupons than the poor. Amazed? The real millionaires rarely shop in luxury stores such as Brook Brothers or Tiffany & Co. Instead, you see them buy at Target, Home Depot, and Walmart. The reason why they do this is simple. They don’t like paying full price. You will need to start doing this too. 

However, it doesn’t mean you should start buying crappy things. You can buy nice things, but not at full price. Buying on craigslist and eBay will save you more, also.

3. Chop out unnecessary expenses 

Cutting off unnecessary expenses will eventually add up over time. There are a couple of ways of doing this. For instance, why not use a cost-saving alternative to sending or receiving funds instead of the electronic means which incur additional withdrawal or transaction fee? On a broader scale, you need to track your monthly expenses by creating a monthly budget. A monthly budget will help you know what your expenses are for each month. Inevitably, you will get to know that you don’t need most of what you spend on.

4. Sell or Rent your Present Possessions

To make some quick income, you can rent or sell the possessions you aren’t using. Your unused parking space, office, or even tools don’t have to pack dust. Selling junks like clothes you are no more wearing online via sites such as eBay, Craigslist, and Amazon, or offline by hosting a closet party will bring in some cash.

5. Leave the card and cash at home

When leaving your home, make a shopping list. T. Boone Pickens always do this. Along with the list, only take the money you will need to make the necessary purchases, and leave your credit card behind. If you aren’t not with the cash, how would you make unnecessary purchases? 

6. Forget about “Get Rich Quick” Programs

Hear this and hear it clear: The probability of getting rich quick is close to none! The rich realized this, and you hardly see them invest in such schemes. Instead, they invest in business opportunities, which is the quickest way of accumulating wealth.

7. Embrace Green

Going green is not only healthy for your environment but your wallet. Going green will effectively increase your savings. Instead of buying energy-gulping devices, cut back electricity bills with the latest Energy Star models.

8. Engage in Side Hustle

Your engagement in Side Hustle gives your two financial advantage. The first one is that it earns you an extra income which can be saved or placed into investment or used to pay down debts. 
The second: you would have lesser time to spend your money on unnecessary things if you are busy with side gigs.



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