Lifestyles of the rich and famous. How do millionaires get so wealthy? Is it because they’re lucky? Nope. It’s because they know how to manage their money. Here’s what you need to know about putting more money in the bank and less in the hands of others.
Mastering Your Money
Live A Simple Life
There’s more than one way to get rich today, and one of the most popular seems to be being frugal. If you can scrimp and save your way to a million dollars, more power to you. For most people, that advice is easier said than done. To get to that million, you’ll probably need to live a much simpler life than you are living right now – especially if you live on a limited income.
Keep the things that you own if they’re old. Fix them up. Sell newer items if they have a cash value and buy something with a lower operating and maintenance cost.
For example, if you own a new car, or a newer car, see how much you can get for it. Don’t trade it in at a dealer. Instead, sell it to a private party or through a national chain like Carmax.
Buy yourself an old, used, vehicle if you can afford it or buy a bicycle.
Downsize your home or apartment. Only live in a place with just enough square footage to suit your needs. If you own a large home, know that this is probably eating into your ability to save. Maintenance costs, mortgage interest, and taxes can add up.
Buy Used Clothing
This tip is difficult for people to actually do, even though it’s simple in concept: buy used clothes. There’s a stigma associated with shopping at goodwill. And, most people don’t want others to think they’re poor. They don’t want to be seen wearing ratty clothing or someone else’s clothes from the 1950s.
The good news is that used clothing stores, Salvation Army shops, and Goodwill all have a decent selection. And, if you’re willing to make the hike into rich neighborhoods, the goodwill there may have top-shelf clothing. This is more likely in a big city than in a small town, but it might be worth a trip to a goodwill out of state or across the state, if it means you can pick up nice clothing for a few dollars.
You can have most things tailored for between $15 and $20, and this is still less than what you’d pay for new garments.
Open Up A Business And Save
This secret is something that a lot of people are catching on to. Open up a business and make extra money. It doesn’t have to be a lot. But, it does have to be enough to at least cover the costs of the business.
If you’re perfectly happy with your day job, you can start a side-job for the extra money. Ideas? A craft business is easy to operate. So is an educational website.
Blogging is popular, and it can also be very lucrative. It doesn’t have to be an expensive endeavor either.
If you’re willing to use discount hosting, and WordPress, you can set up a blog with a hundred dollars or less.
If you want to make something, and sell it on eBay, Etsy, or some other site, that can become a profitable side-business too.
And, you don’t have to earn a full-time income from it, either. You could earn an extra $5,000 profit per year, and that’s enough to start saving for your future. If you’re able to clear $10,000 a year, you would be making more than most people do in a part-time business, and adding $100,000 to your savings over 10 years. That’s significant.
Being frugal is underrated. No, you don’t have to be a cheapskate for cheapskate’s sake. But, you should learn to love living with less. For example, eat healthy by cutting out junk food and stocking up on soups, beans, lentils, and other cheap foods.
You can reduce your grocery budget from several hundred dollars to just $100, maybe even less.
Cancel your T.V. cable and pick up Netflix or Hulu Plus.
Better yet, go to the library and pick up some books.
You can walk more places, or ride a bike. It will give you exercise and get you out of the house. Plus, it doesn’t cost anything.
Abbie Butler is known as the go-to personal finance guru amongst her friends and family. She has recently taken to sharing her frugal tips through blogging, her articles appearing mostly on personal finance blogs.