9 Practical Pieces of Advice Heard From Millionaires Everyone Can Use
Becoming a millionaire is not just some unrealistic dream. The statistics show that more than half of millionaires are self-made. The lessons that we can gain from them can’t guarantee us a millionaire status, but it’s totally worth listening to.
info-ideal has put together some of the smartest sayings about earning, saving, and investing money to help you to get a little bit closer to your dream of getting super rich.
9. The 50/30/20 rule
This is a rule that can be used for managing a budget. It supposed to divide your income into 3 categories:
- The first category is living essentials. 50% should be allocated for monthly expenses such as rent, transportation, utilities, groceries, etc.
- The second category is personal spending. It means you can use 30% of your income for entertainment, shopping, hobbies, and anything that makes you happy.
- The last category is savings. 20% of your money should go straight to the bank. You can follow the advice of Grant Cardone, a self-made millionaire.
“Put your saved money into secured, sacred (untouchable) accounts. Never use these accounts for anything, not even an emergency. To this day, at least twice a year, I am broke because I always invest my surpluses into ventures I cannot access.”
8. Buy in bulk and on sale
Clearly, it’s not the kind of advice that you expect to get from millionaires. But we all can agree that this way of shopping can save some money. This rule applies to the products you’ll actually use and won’t waste.
“It’s so hard to make a return on regular investments that […] you’re better off buying two years’ worth of toothpaste when it’s on a 50% discount. There’s an immediate return on your money. That’s real savings that you get to put in your pocket.”
7. Don’t use credit cards.
If you have a credit card in your wallet, it encourages you to buy what you want right away, regardless of whether or not you can actually afford to do so. But using credit cards to make purchases means spending money you don’t actually have. Moreover, the reality of high-interest rates makes your purchases much more expensive.
“Credit cards are the worst investment that you can make. That the money I save on interest by not having debt is better than any return I could possibly get by investing that money in the stock market. I thought I would be a stock market genius. Until I wasn’t. I should have paid off my cards every 30 days.”
6. Try to buy from manufacturers.
Before you buy something in a shop, ask yourself this question, “Is it possible to buy it straight from the manufacturer?” Quite often you may find out that you can order the product for a lower price. Sometime you might face minimum order quantity. In this case, you can suggest friends to place the order together by motivating them with the attractively low prices.
“We were paying for organic produce, and the prices were killing us. So I thought, ‘Where is this store getting its food from?’ We did the research, called the wholesaler, and found out the criteria for ordering. The minimum order was $250. So we started taking orders from friends and arranged to get palettes of food dropped off in our driveway.”
5. Not spending money is the same as making money.
The less money you spend, the more you have. It’s an obvious conclusion. Do your shopping rationally. If you struggling with impulse shopping, you can ask yourself these questions before each purchase, “Do I really need it? What if I don’t buy it?”
“People are always surprised that I don’t have a closet full of suits. I buy three suits every five or so years and only own 10 total. That’s all I need.”
4. Live below your means.
The biggest problem of many people is that they spend more that they earn. The only way you can increase you budget is living below your means.
We often meet people who buy nice houses in a nice neighborhood just because they want to impress other people. They think about what their friends and family members are going to say. Think about yourself, focus on your life, and don’t try to show off.
“I didn’t buy my first luxury watch or car until my businesses and investments were producing multiple secure flows of income. I was still driving a Toyota Camry when I become a millionaire. Be known for your work ethic — not the trinkets that you buy.”
3. Start earning passive income.
The thing that most people do that results in them never getting rich is hard working for every dollar. In this case, their time equals their money.
Do you know millionaires who earn money just by spending time at work? Of course not. They get their money to work for them. Time is more valueble than money. That is why having passive income is important.
“Can you save a million dollars? You can, but you have to be really disciplined. You also have to be a little bit of a risk taker. Part of the risk is maybe putting money into a low-cost mutual fund.”
2. Surround yourself with successful people.
The idea is easily explained by how much people around you influence your life and your mindset. If you get along with talented people who share your vision, it’s easier to generate creative ideas and bring them to life.
Be around people who not only inspire you but also encourage you to take action and to make your dream bigger.
“In most cases, your net worth mirrors the level of your closest friends. Exposure to people who are more successful than you are has the potential to expand your thinking and catapult your income. The reality is that millionaires think differently from the middle class about money and there’s much to be gained by being in their presence.”
1. Money isn’t everything.
Obviously, money is a big factor in our lives. It defines where we live, what we eat, and what we possess. But money isn’t everything. You can buy a house to live in, but you can’t buy a family to live with.
Money improves the quality of life. But it’s nothing compared to the support of your family and friends, health, and the feeling of happiness.
“Money is not everything, and it’s not worth sacrificing your health, family, friends, or other experiences for it. I have lost a few friends and strained other relationships because I’ve spent too much time staying late in the office or hustling on the weekends. Even though I truly believe that having money is freedom, money is really just a tool to make experiences in life possible.”
To be honest, big money isn’t made by simply following a set of rules and guidelines. But creating healthy financial habits is a big step towards financial success. The only thing that can stop you from achieving your dreams and goals is your attitude towards them.
What do you think about this advice? If you have any other ideas, share with us in the comments below!
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