We can’t all be filthy rich, but we can learn from the habits of people who are. In fact, some financial experts say they can be used as a sort of roadmap to success. Following them won’t make you another Bill Gates, but it can help you stretch your dollar further and make the most of what you have.
Let’s take a look at some of them.
In an article on 5 frugal habits of the filthy rich, entrepreneur.com listed these habits of the discretely wealthy:
1. Using coupons
Entrepreneur.com says households with average incomes of $100,000 or more use more coupons than those that bring in under $35,000. An astounding 71 per cent of the affluent use paper coupons or discounts every month, with 54 per cent using online coupons every month. The learning here is: wealthier people get more discounts. See our article here on where to find online coupons.
2. Living below your means
While some of the super-rich flaunt their wealth, others are thrifty to the extreme. Examples of this are cutting their own hair, or driving a beat-up old car when they could afford the latest Porche. Many very rich people also live in modest homes – not every person who can afford it buys a Sydney harbourside mansion. They also shop most of the time at budget stores rather than upmarket label stores.
3. Being charitable
According to Entrepreneur, many rich people donate to charitable causes. Just like us donating a few dollars to the Salvos, it makes them feel good about themselves, knowing you have done something to help someone else less fortunate.
4. Valuing quality over quantity
This is something many of us were taught by our parents, and the wealthy are no exception. One good-quality pair of shoes can be more comfortable and outlast that cheap Chinese pair 10 times over.
5. Not carrying wads of cash around
Most of us do anyway, in my case because I’m worried about losing it. But we all know that cash burns a hole in your pocket pretty quickly, so if you’re in the habit of taking cash out just so you have it on you, think twice.
Here is another useful money-saving secret of the frugal rich from bankrate.com: The wealthy don’t buy on impulse – they tend to be a little more thoughtful. The theory behind this is that the delayed response helps them avoid some of the impulses that would result in poor choices otherwise.
Noticed any similarity in the underlying themes here? Yes, it is thinking about what we spend our money on, a general thriftiness and not blowing money on stuff we don’t need. Also not giving a hoot about so-called status symbols like swanky cars and the latest Armani suit..
It seems wealthy people are all about getting the most bang for their buck – a guideline we can put to good effect in our own lives.
How do you save money and stretch your dollar further?