Frugal Habits Wealthy People Have

All wealthy people don’t behave the same, they aren’t a monolith.

But they have some pretty common behaviors and characters, that made them wealthy and or keep them wealthy.

Here are some:

Being frugal is a mindset.

1. Many times, we have to train our minds to understand what it means to be frugal. And frugal is not cheap. I’m the type that will squeeze the toothpaste until there is truly no more. I find the better deal and hunt patiently.

2. Some thoughts are understanding value vs. price. Is this price the value I am paying for?

3. Do I WANT this, or do I NEED this. Many times, we find ourselves buying things we don’t need out of impulse or because “we deserve it “. Big mistake. Again, training the mind. To be frugal is to enjoy what you have, value it, and if it ain’t broken, you don’t need a new one.

4. Today can you decide to take a year off, say from work and still have money left over? When we are frugal, we don’t spend more than we need to. We save, buy things that last and always be generous. I find that grandma’s advice is great. If you make $10, give away $1, live off $4, and save $5. I know many disagree with saving, but it’s what worked for me and I sleep well at night.

5. Other than home purchases they avoid debt. And they don’t typically live in super ostentatious houses.

6. They get nice ones but not crazy supercars. Never leased. They hold onto them for a good while.

7. They don’t surround themselves with yes-men who won’t say “no” to their more hare-brained ideas.

8. They don’t spend one f*#king dime trying to impress others. They don’t care about that.

9. They teach their kids about money … how to plan and manage money instead of just buying stuff and paying the bills for it.

10. Their investments are highly diversified and goals are updated once per year.

11. They will take every tax break available but be scrupulously lawful with that, using senior CPAs.

12. One Very important element is that the spouses are aligned about what their money goals are.

13. It really seems like if they have three or more kids one of them will turn out to be a complete screw-up.

14. They pay in cash. Not much in credit.

15. They pay in full, not in installments.

16. They are not flashy; they hide their riches very well. Except if they’re models, celebrities, or entertainers where their image is part of the job.

17. They only work as a hobby, not because they need to.

18. They don’t mind studying arts or philosophy or even fashion for a job. They study forever because it’s their hobby.

19. They buy high-quality and expensive things if that means they can use them for a very long time.

20. “The glittering rich” as they are called in The Next Millionaire Next Door book by Thomas J. Stanley and Sarah Stanley Fallaw, don’t need to be always frugal or live below their means. Because no matter how much they spend they always have more/they have more than enough, they don’t deprive themselves! But avoid being wasteful of money.

21. Couponing, searching for deals when buying things online or offline, if they can slash a dollar off from purchase, they’ll do that and have a mentality of “A dollar is still a dollar”. Not big, not small.

22. They Track their spending and make adjustments. Most people just track. Never spend money on items he didn’t need and minimized his monthly expenses to ensure he saved the maximum.

23. By making their expenses as low as they possibly can be, they are able to save more money, then invest that money in various ways, passive or active, like an index fund or a business.

24. Some will buy a very modest car and drive it until it falls apart.

25. Some will bring their lunch to work even though they can afford to buy it.