Money helpsus tolive the life ofour dreams, aslong aswe’re earning plenty and not splurging too much. While most ofus are busy balancing our personal expenses with one yearly trip tomake sure wehave abed tosleep inand food toeat every day, many others are pretty sorted with their paychecks and credit card bills! They work asmuch aswedoand yet their saving game has upped the ante.
Bright Side isintrigued bythese common traits and rules people good atmanaging money swearby. Believe itornot, these 12practical money-saving tricks rich people use can change the way your savings account looks.
1. The 24-hour rule
Millionaires swear bythe 24-hour rule. They may not need togive itasecond thought before making anexpensive purchase, but they give itaday’s time before actually making the decision. Impulsive buys happen from anemotional trigger and are often unnecessary. Ask yourself the “want orneed” question and you won’t splurge asmuch.
2. Anall-cash diet
Cashless economies are good for your wallet but aren’t too friendly with credit card bills. People who spend strategically prefer cash over acard, especially for smaller purchases. The rich live bythe habit ofkeeping asfar away from debt aspossible. You can start paying for your meals incash and avoid saving your card details inbrowsers tokeep atab onyour expenses.
3. Set abudget and stick toit.
This sounds cliché but setting aclear budget onyour payday and sticking toitwill help you save loads ofmoney. Take anhonest “income vsexpenditure” audit and put acap onyour personal expenditure. Financial experts call itthe 50/30/20 budgeting method.
4. Spend onthings that help you earn.
You don’t need tobemiserable tosave money. The rich splurge onthings that guarantee along term investment. Making purchases that help your work, contribute toyour current job, oradd toyour overall earning power are good.
Kimberly Palmer, apersonal finance expert atNerdwallet, ishappy tosplurge onwork outfits, agood laptop, orareliable car.
5. Invest inservices that save you time.
According toBusiness Insider, the rich don’t shy away from splurging onservices that could save their time and mental agony. They focus oninvesting rather than spending. Getting your groceries home delivered, using laundry services, orrenting acomparatively expensive space tostay closer towork will only add quality time toyour life. These things may cost more but they give you anample amount oftime todothe things that make you happy.
6. Experiences are invaluable.
Millionaires live aflamboyant lifestyle and make sure toadd life experiences totheir calendar. That’s because they prioritise spending onenriching experiences that add totheir life and health. They would easily swap their daily expenses with life-changing treks, skydiving, trips, oragym membership!
7. Bills first, rest later!
Understanding your fixed expenses iswhat people good atmanaging money dobetter thanus. They swear bythe rule ofpaying their fixed expenses onthe very first day through automated systems sothat they have aclear view ofhow tospend the rest oftheir money.
8. Make ashopping list for annual sales.
Weall love sales. However, buying stuff that isn’t onsale doesn’t necessarily equate tosaving money. Aslucrative assales canbe, they eventually make you spend way more than you should and buy stuff that you didn’t even need inthe first place. People that are good with money advise toplan your shopping list inadvance and schedule your big buys through sales toget agood bargain.
9. Invest inthings that make you happy and healthy.
Buying stuff that makes you happy and that add toyour hobbies and passions once inawhile isokay. The rich “work hard and play harder” bymaking sure they love what they doand invest inthings that make them happy. Ifyou’re passionate about constellations, splurging onatelescope isokay aslong asyour savings allow itand you are truly happy.
10. Start “nospending” days orweekends.
People who are good atsaving are also good atcontrolling their urge tospend unnecessarily. Try having a“nospending” day every week oronthe weekends and stick withit.
11. Save your change and useit.
Everybody hates loose change. Once you’ve dropped acoin inyour bag, you forget aboutit. But guess what: every penny saved isapenny earned! Keep the change handy and reuse itfor your coffee/snack breaks tokeep your daily expenses ataminimum.
12. Repair things before discarding them.
While the rich love toinvest, they believe incommitting totheir purchases until their very last breath. They propagate the idea ofgetting machines and gadgets repaired when they break down before putting them inthe trash. Fixing things saves money and the planet too!
Are there any money saving tips that helped you save enough for alast-minute crisis? Orhow about for avacation? Tellus your tips inthe comments!
Please note: This article was updated in April 2022 to correct source material and factual inaccuracies.
Preview photo credit
Wild / Fox Searchlight, Confessions of a Shopaholic / Touchstone Pictures
