Becoming amillionaire isnot just some unrealistic dream. The statistics show that more than half ofmillionaires are self-made. The lessons that wecan gain from them can’t guaranteeus millionaire status, but they are totally worth listeningto.
Bright Side has put together some ofthe smartest sayings about earning, saving, and investing money tohelp you toget alittle bit closer toyour dream ofgetting super rich.
9. The 50/30/20 rule
This isarule that can beused for managing abudget. Itsupposed todivide your income into 3categories:
- The first category isliving essentials.50% should beallocated for monthly expenses like rent, transportation, utilities, groceries, etc.
- The second category ispersonal spending. Itmeans you can use30% ofyour income for entertainment, shopping, hobbies, and anything that makes you happy.
- The last category issavings.20% ofyour money should gostraight tothe bank. You can follow the advice below from Grant Cardone, aself-made millionaire.
“Put your saved money into secured, sacred (untouchable) accounts. Never use these accounts for anything, not even anemergency. Tothis day, atleast twice ayear, Iam broke becauseI always invest mysurpluses into venturesI cannot access.”
8. Buy inbulk and onsale
Clearly, it’s not the kind ofadvice that you expect toget from millionaires. But weall can agree that this way ofshopping can save some money. This rule applies tothe products you’ll actually use and won’t waste.
“It’s sohard tomake areturn onregular investments that [...] you’re better off buying two years’ worth oftoothpaste when it’s ona50% discount. There’s animmediate return onyour money. That’s real savings that you get toput inyour pocket.”
7. Don’t use credit cards.
Ifyou have acredit card inyour wallet, itencourages you tobuy what you want right away, regardless ofwhether ornot you can actually afford todoso. But using credit cards tomake purchases means spending money you don’t actually have. Moreover, the reality ofhigh-interest rates makes your purchases much more expensive.
“Credit cards are the worst investment that you can make. That the moneyI save oninterest bynot having debt isbetter than any returnI could possibly get byinvesting that money inthe stock market. IthoughtI would beastock market genius. Until Iwasn’t. Ishould have paid off mycards every 30days.”
6. Try tobuy from manufacturers.
Before you buy something inashop, ask yourself this question, “Isitpossible tobuy itstraight from the manufacturer?” Quite often you may find out that you can order the product for alower price. Sometime you might face minimum order quantity. Inthis case, you can suggest friends toplace the order together bymotivating them with the attractively low prices.
“Wewere paying for organic produce, and the prices were killingus. SoIthought, ‘Where isthis store getting its food from?’ Wedid the research, called the wholesaler, and found out the criteria for ordering. The minimum order was $250. Sowestarted taking orders from friends and arranged toget palettes offood dropped off inour driveway.”
5. Not spending money isthe same asmaking money.
The less money you spend, the more you have. It’s anobvious conclusion. Doyour shopping rationally. Ifyou struggling with impulse shopping, you can ask yourself these questions before each purchase, “DoIreally needit? What ifI don’t buyit?”
“You don’t spend any money for 4days, you got adollar. I’m not spending money.”
4. Live below your means.
The biggest problem ofmany people isthat they spend more that they earn. The only way you can increase you budget isliving below your means.
Weoften meet people who buy nice houses inanice neighborhood just because they want toimpress other people. They think about what their friends and family members are going tosay. Think about yourself, focus onyour life, and don’t try toshow off.
“Ididn’t buy myfirst luxury watch orcar until mybusinesses and investments were producing multiple secure flows ofincome. Iwas still driving aToyota Camry whenI become amillionaire. Beknown for your work ethic— not the trinkets that you buy.”
3. Start earning passive income.
The thing that most people dothat results inthem never getting rich ishard working for every dollar. Inthis case, their time equals their money.
Doyou know millionaires who earn money just byspending time atwork? Ofcourse not. They get their money towork for them. Time ismore valueble than money. That iswhy having passive income isimportant.
“Mywhole goal whenI started [working] was toretire bythe timeI was 35...because the one thing you can never buy istime.”
2. Surround yourself with successful people.
The idea iseasily explained byhow much people around you influence your life and your mindset. Ifyou get along with talented people who share your vision, it’s easier togenerate creative ideas and bring them tolife.
Bearound people who not only inspire you but also encourage you totake action and tomake your dream bigger.
“Inmost cases, your net worth mirrors the level ofyour closest friends. Exposure topeople who are more successful than you are has the potential toexpand your thinking and catapult your income. The reality isthat millionaires think differently from the middle class about money and there’s much tobegained bybeing intheir presence.”
1. Money isn’t everything.
Obviously, money isabig factor inour lives. Itdefines where welive, what weeat, and what wepossess. But money isn’t everything. You can buy ahouse tolivein, but you can’t buy afamily tolive with.
Money improves the quality oflife. But it’s nothing compared tothe support ofyour family and friends, health, and the feeling ofhappiness.
“Money isnot everything, and it’s not worth sacrificing your health, family, friends, orother experiences forit. Ihave lost afew friends and strained other relationships because I’ve spent too much time staying late inthe office orhustling onthe weekends. Even thoughI truly believe that having money isfreedom, money isreally just atool tomake experiences inlife possible.”
Tobehonest, big money isn’t made bysimply following aset ofrules and guidelines. But creating healthy financial habits isabig step towards financial success. The only thing that can stop you from achieving your dreams and goals isyour attitude towards them.
What doyou think about this advice? Ifyou have any other ideas, share withus inthe comments below!
Please note: This article was updated in July 2022 to correct source material and factual inaccuracies.
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