To be honest, there isn’t one sure-fire way to become rich. However, you can increase your chances by investing in things like stocks or real estate, planning for your future by saving for your retirement as soon as possible and having multiple streams of income. It also involves being careful with your spending by being frugal.
Want to see how it’s done? Start by following these ten tips.
1. Stop keeping up the Joneses and live below your means.
You know those neighbors or family members who constantly have a new car in the driveway of their McMansion, are on vacation in exotic lands, wear the latest fashions and eat at only the best restaurants in town? It may appear that they have it all. Here’s the thing. They don’t. And, if they’re like most Americans, they’re just one paycheck away from the street.
Instead of trying to keep with Joneses, follow the lead of wealthy individuals like Warren Buffett. He lives in the same house he purchased in 1958 for a mere $32,000 (which was a lot of money in 1958). He’s known for buying modestly priced vehicles every couple of years, such as a 2006 Cadillac that he auctioned off for charity. Buffett, despite being worth more than $74 billion, lives well below his means.
2. Eliminate unnecessary expenses.
How much money do you spend at Starbucks each morning? How much have you paid in ATM fees this month? Why are you paying over $100 per month for a cable package when you rarely watch TV? In short, we all wasted countless amounts of dollars on unnecessary expenses or things that we don’t need.
Instead of buying coffee daily, buy a bag of Starbucks and make it home. Avoid ATM fees by only withdrawing money from machines that don’t have any fees or start transferring money through digital wallets. Cut the cord and pay around $10 for Netflix or Hulu.
The easiest place to start when determining which expenses to cut is by creating and sticking to a budget. This allows you to easily see where your money is going each month so that you can start trimming the fat, as well as help you accomplish any financial goals that you’re set..
3. Stop paying full-price.
Here’s another secret from the world’s wealthiest individuals? They never pay full price for anything. In fact, it’s been found that households with an average income of $100,000 or more use more coupons than households that earn under $35,000 annually?
Besides couponing, the rich are known for buying used items on Craigslist, eBay, or their local thrift shops.
4. DIY.
You don’t necessarily have to become a jack-of-all-trades or even a master one particular area, but learning how to do some basic chores can save your a lot of cash in the long-run. I’m talking about everything from cooking dinner to changing the oil in your car to sewing to replacing an electrical outlet.
If this seems overwhelming, consider starting with food delivery services like Blue Apron, Hellofresh, Sun Basket or Home Chef. They sound you all the ingredients and step-by-step instructions on how to prepare the meals. It’s a foolproof…