The media likes to paint a certain picture of what it means to be rich — huge mansions, expensive cars, luxurious items, and more. If you buy into that image, being rich may feel like an impossible dream.
But the truth is that most rich people live very normal lives. The only thing that sets them apart from those who are trying hard to be rich is that they live by a set of rules that help them manage their money. Here are 12 money saving tips that rich people follow.
1. The 24-hour rule.
Rich people wait for an entire day to think over every non-essential purchase.
2. An all-cash diet.
The rich live by the habit of keeping as far away from debt as possible, so they prefer paying their purchases in cash over credit cards.
3. Set a budget and stick to it.
The “50/30/20” rule puts 50 percent of your income toward necessities, thirty percent of your income can be allocated to wants, and twenty percent should then go toward financial goals, like paying off debt or saving for retirement.
4. Spend on things that help you earn.
Rich people know that just because they need to save money, doesn’t mean they don’t have to buy anything. The only difference is that they splurge on things that guarantee a long term investment like a good laptop, or a reliable car.
5. Invest in services that save you time.
The rich don’t shy away from spending their money on services that could save them time and mental distress.
6. Experiences are invaluable.
Millionaires are keen on adding life experiences to their calendar. Instead of showing off their most luxurious items to the world, they would rather go out and see the world with life-changing treks, skydiving, and personal trips.
7. Bills first, rest later!
Rich people swear by the rule of paying their fixed expenses on the very first day through automated systems to have a clear view of how much they have left to spend on other not-so-important things.
8. Make a shopping list for annual sales.
A huge sale would make everyone purchase a lot of things — even those that they don’t need. The rich would plan their shopping list and schedule their big buys.
9. Invest in things that make you happy and healthy.
Millionaires “work hard and play harder.” They don’t spend on things that don’t really add meaning to their lives. They wouldn’t mind splurging on their expensive passion because it makes them happy, as long as their savings allow it.
10. Start “no spending” days or weekends.
The “no spending” days, weekends, or months is simple. Set out a limit for yourself and then shelling out any money during the time period unless there’s an absolute emergency.
11. Save your change and use it.
Don’t underestimate your loose change. Save them every chance you get, and you could buy yourself some coffee or snack in no time.
12. Repair things before discarding them.
While the rich love to invest, they believe in committing to their purchases. So instead of throwing a damaged item right away, they would try and fix it first before finally putting it in the trash.