15 Money Habits Of Rags To Riches Billionaires
When it comes to making and saving money it’s best to try to mimic those who have been successful. It’s not about re-inventing the wheel, but instead following those who have a proven track record for success.
Saving money is something that everybody wants to do, yet only a few people are successful in doing so. You may have good intentions at the beginning of the month, but you end up with nothing set aside. The thing is, your money habits dictate whether or not you’ll save something. Therefore, you need to watch your spending more carefully.
With that said, billionaires such as Warren Buffet and Jeff Bezos all share certain characteristics. Take a look at these habits of the billionaires.
Here are useful tips to increase your savings:
Know the Difference Between Wants and Needs
Wants and needs are two different things. The truth is, many of us tend to focus (probably unconsciously) more on their wants rather than prioritizing their needs. This leads to zero savings, or worse, more debts.
Learn How to Budget
Budgeting is very important, and it is crucial that you spend your money wisely. You should never spend beyond your means. The key is, look at your monthly income and adjust your spending accordingly. Make it a point to put something towards your savings account.
Track Your Cash Flow
When you get paid at the end of the month, you’re golden. But this does not mean that you can already go on a shopping spree. First, create a budget and track where your money goes on a regular basis.
Define Your Goals
When we say ‘goals’, you have to be very specific. Instead of saying, “I will save money.”, it would be better if you make it more specific by saying, “By the end of the month, I should have $100 to go towards my savings. This makes it easier for you to achieve your goal.
Keep Track of Your Expenses
The biggest reason why many people are unable to save money is that they don’t keep track of their expenses. They spend money like there is no tomorrow. So if you want to build your savings, you should avoid that. Like what we have said earlier, you need to know where your money is going. You can utilize various tools for this purpose.
Try to Reduce Your Bills
When you receive your bills or monthly statements, take the time to review them. If they are too high, maybe you can negotiate them. Also, it would be a good idea to try to conserve energy as much as possible so your bills will be reduced too.
Automate Your Savings
If you really want to save money, you should consider automating it. This means, that a certain amount of money will be transferred automatically to a different account so you can’t touch it.
Cut Your Expenses
As you create your budget, double-check the things on your list and see if there is anything that you can get rid of. This way, you can put more money into your savings. If you added a new pair of shoes or perhaps a purse in your list, maybe you should think twice about that.
Get Rid of Your Credit Card
Credit cards are temptations, period. They will only tempt you to spend money that you don’t have at the moment. And besides, they come with interests, so that’s only putting yourself in a hole. Bottom line, get rid of them!
Check Your Financial Progress Regularly
This comes along with tracking your cash flow. Make it a habit to check your financial progress weekly or even daily. Doing this will give you a better idea of your current standing and make you aware if you are overspending or not.
Don’t Hesitate to Use Coupons
Coupons are being given out all the time. And mind you, they are very helpful. When you go grocery shopping, do not hesitate to utilize them. A few bucks off your grocery budget should still help you save money, right?
Prepare Your Own Meals
Food is one of the biggest monthly expenses. We all need to eat in order to survive, but this does not mean that you can’t cut back. The best thing that you can do is to prepare your own meals and pack your lunch instead of eating out all the time. You’d be surprised at how much money you’ll get to save.
Compare Before You Buy
Lots of people get tempted to buy branded stuff, which is not really practical. The thing is, you really don’t have to spend more money on something that you can get cheaper by supporting another brand. So before you buy anything, compare the prices. Going for generic brands is not a crime in the first place.
Use Cash When Grocery Shopping
Aside from making sure that you have a list and you stick to it when you get your groceries, it would also help a lot if you use cash only. Why? Because you won’t be tempted to get things that are not part of your budget.
Build a Business on the Side
One good thing that you can consider doing if you really want to increase your savings is to build a business on the side or perhaps a part-time job. If your incomes increases, and so does your ability to save more.
By simply following these habits you will be on the right path to success. Don’t overlook the simplicity of the process. We most often fail by over complicating things. Keep things simple and well organized and you too can be successful.