My husband and I have a few friends who are millionaires. I know what you are thinking…oh, lucky them! And, yes, they do have some fun luxuries the rest of us don’t have. But, they also do things with their money, that many of the rest of us wouldn’t do. This list will surprise you! Millionaires who weren’t born into great wealth had to learn the hard way how to be good with their money. This isn’t just a list I made up, but it was pulled from my personal friendships… they surprised me, too!
Disclaimer: Obviously, every millionaire doesn’t do every one of these things. 🙂
9 Millionaire Spending Tips:
- When starting a new hobby, they buy a basic bike, guitar, putter or camera. One of our friends really did this. He had plenty of money to purchase the best equipment out there for a new sport he wanted to learn. Instead, he purchased the base model to see if he enjoyed it and would stick with it. (Versus what I do, buy cute workout outfits, but then don’t workout. But, that’s another issue! 🙂 If you are only buying the equipment for the fun of new equipment, the sport probably won’t last very long…only until the tires get dirty on your $3000 bike!)
- They understand “used quality” trumps “new cheap”. Wealthy people hand down quality items. When things matter, pay once for quality. Think of antiques, art, jewelry. No one is complaining about them being secondhand. They realize the quality and worth attached to them. So, when you are purchasing a car, it isn’t wise to purchase a new car that drops $10,000 in value as soon as you drive it off the lot. You can purchase a higher quality car for the same amount.
- They stretch their dollars. Or, we could say, they think about how they can get the most bang for their buck. I know, very intimately, an extremely wealthy couple that shops for big purchase items only when that item is on sale (and if they can pair it with a coupon!) I think, for those of us who don’t have tons of expendible income, we may shop like that, but we feel bad about it. Don’t! It’s smart! We personally use coupons for everything we can because even if you can stretch your budget 10 more dollars, that’s $10 in your bank. That’s $10 you are ahead! That’s $10 to go toward debt, savings or giving.
- They don’t buy on impulse. Someone I know pre-planned when they would purchase a car. It was when the prices were the lowest for the season. It wasn’t when their car was looking dirty, they were tired of it or it needed to be fixed. Nope, there was a plan and they stuck to it. And they will drive that car until their plan is done.
- They drive old (paid-off) cars. It’s so funny, those of us who struggle with our finances go in debt with a hefty car payment. Yet, a few of my wealthier (& wiser!) friends are driving worse cars than me. Why are they driving them? Because they don’t have a payment. The longer they drive that car, the more money they are putting into the bank. How much is your car payment right now? How much is it per year to drive? That is how much my wealthy friends are saving by driving a car with no payment. Smart!
- They figure out price per wear. Speaking from my experience, I’ve purchased jeans that were cute and on sale and didn’t fit. How many times do you think I wore them? The price per wear is too high for jeans that didn’t fit. On the other hand, I usually purchase one pair of really good jeans when I need them. Since this is a big purchase, I shop around and I am much more careful. If they don’t fit right and if I can’t wear it with absolutely everything, I won’t buy them. Then, I wear them non-stop until they fall apart. Seriously, I will keep them for years and years! My price per wear is pennies!
- They live beneath their means. They don’t spend every penny they make. They use a budget. The extra is generously given, saved or invested. Are you thinking, “I don’t have any extra?” Cut expenses until you do! If you’ve cut every expense you can, than you have to make more money. The point is, you can’t keep living one paycheck away from devastation, or one emergency away from bankruptcy. That’s a stressful place to live. Something has to change.
- They use a budget. All of the millionaires I am in personal relationship with, use a budget. They realize that money has a way of escaping, so if they want to keep some of it around for a while, they realize they must control their spending habits. Most of us (non-millionaires) do not use a budget. We think of a budget as something that is limiting, but it really is freeing! If you would like to learn more about living on a budget, click here. If you would like some free budget printables, click here. Check out Dave Ramsey’s website to begin your journey to financial freedom.
- They are generous. And, I know what you are thinking, “Sure, they can afford to be generous!” Generosity is not about the amount, it is about the heart. It is the opposite of greed. It is a spirit of gratefulness to our Creator and a desire to help and give to things that will outlast us. There is no end to the luxuries our heart wants. That is where self-control comes in and says, God gave all of this to me, I want to return it to him to build his kingdom. Want to read more about this topic? Click here.
There are many stories out there about greed, but one of the saddest that I recently heard was an NBA basketball player who is one of the highest paid in the league. (hint: he plays for the Bulls, but that is the last hint I am giving you! 😉 A reporter was asking him what he was working on during their training camp. His response? “I’m looking forward to signing my next contract. You know, I’m just thinking about my son.” (yea, right!) Just greed at work. If you have that spirit of greed, no amount of money will satisfy you. Contentment and generosity in whatever financial state you are in is the best place to be.
I hope you enjoyed this great advice from some millionaire friends!
I hope this blessed you today. Which tip did you find most surprising? Leave a comment below. Or, do you have another tip that your wealthy friends do? Share it, I would love to learn from you. And subscribe today, if you would like to receive a weekly re-cap email packed full of great info on how to build a healthy, happy family!
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