March 12, 2014 | By fischer |
Landing a cushy job with a big paycheck is not the only way to strike it rich. No matter what your personal income level, if you live below your means, maintain a modest lifestyle, and invest wisely, you are on the path to real riches.
The majority of self-made millionaires share the following five frugal habits – adopting them can lead you on the road to building lasting, long-term wealth and financial independence:
1. Leave the cash at home
Avoid traveling with your money-clip stuffed with cash and credit cards. Bankrate.com states that 86 percent of those forking over cash for luxuries such as expensive cars, jewelry, and electronics are wannabe millionaires purchasing luxury brands to act the part. Instead, model your spending habits after oil baron T. Boone Pickens, who only carries the exact amount of cash needed to purchase items on his ‘list’.
2. Never pay full price
The best way to hold onto more of your money is by refusing to pay full price for anything. Michelle Obama is often seen wearing frocks from Target or H&M rather than expensive designer couture. Hilary Swank has been spotted using coupons at the grocery store, despite her estimated net worth of $40 million. Having a frugal mindset and using the money you save on consumer goods toward savvy investments and savings accounts is a great way to build wealth.
3. Buy a modest house
Buy a modest, but comfortable home and build your retirement fund and savings accounts with the money you save in monthly mortgage payments. Take Buffett’s cue – he still resides in the same Omaha, Neb., home he purchased in 1958 for a modest $31,500.
4. Drive a modest car
Your vehicle really only has one purpose – to get you safely and comfortably to your destination. Pulling up to a stoplight in a Lamborghini or McLaren might impress a stranger, but the price tag of your car does not define your character, and at the end of the day, the people who count could not care less what steering wheel you are sitting behind. Facebook founder Mark