Imagine having a fortune like Warren Buffett or Elon Musk, but still living in a modest home and driving an ordinary car. Sounds crazy, right? But that’s exactly what some of the world’s wealthiest people do. They’ve mastered the art of being frugal, and it’s a big reason why they’re rich in the first place.
In this blog, I have mentioned 7 surprising Frugal habits of the Super Rich that you can Apply in your life from today itself. These aren’t your usual “skip the latte” tips. these are the real deal you might have heard a few of them before as well.
So why wait let’s dig into these:
1. Know Your “Enough”
Why the super-rich people we admire don’t act rich? Of course not talking about the rappers, It’s because they know their “enough.” This means they understand what they really need, not just what they want.
Take Warren Buffett, for example. He’s a super wealthy multi-billionaire, but he still lives in the same house he bought in 1958 for $32,000. And his car? It was just a regular 2006 Cadillac before he sold it for charity.
These money-smart folks don’t chase after bigger houses or fancier cars just because they can. They ask themselves, “Do I really need this?” Most times, the answer is no.
Knowing your “enough” is like knowing when you’re full at dinner. Your stomach tells you to stop eating. But with money, there’s no natural stop sign. That’s why it’s important to set your own limits.
But if a supercar or a big house is something you dream of and really want. I recommend you read the 2nd habit it will help you in Making that decision for the better!
Rich people who spend wisely enjoy their money without letting it take over their lives. They don’t risk their cash on things they don’t understand, even if someone promises they’ll get rich quickly.
Instead, they focus on things that matter – like their health and relationships. They know that always wanting more is like trying to fill a hole that has no bottom.
So, the first step to being smart with money? Figure out what “enough” means for you. It might just be the key to feeling rich, no matter how much money you have.
2. Try Before You Buy “Magic of Rent”
Smart rich people don’t rush into big purchases. Instead, they test things out first. It’s like sampling food before ordering a whole meal.
‘In all the big purchases you can use “rent” as your option to try before you buy’!
These money-wise folks know that spending wisely doesn’t mean never spending. It means getting the most bang for every buck. So, they start small before going big.
Take houses, for example. Dreaming of a big lawn or pool? Rent a place with those features for a year. You might find out you don’t enjoy the extra space. It needs more furniture, more cleaning, and more work!
If you see the above figure in renting you can experience the same place for a fraction of the price saving you a lot of money that goes upfront when buying a house
The same goes for cars. You might see flashy ads and think a car is perfect. But how do you really know? Rich people often rent a car first. They drive it for a week to see if they truly like it. Does it fit in their garage? Is it good for long trips?
For example, just look at Edmund’s analytics study quote
You really need to rent first if you want to get saved from such expenses It’s a smart way to dodge buyer’s remorse and keep Your wallet happy.
So, before you commit to a major purchase, ask yourself: Can I try this out first? It might just save you from an expensive mistake and a load of regret.
3. Audit Your Spending Regularly
Every person should have a habit of regularly checking where their money goes. It’s like being a detective but for your own spending.
These days, lots of things want you to pay every month. Movies? That’s Netflix. Music? Hello, Spotify. Working out? Gym membership. Companies love this because they get your money over and over.
These money-wise folks don’t let that happen. They keep a list of what they’re paying for and ask tough questions:
- Do I still use this?
- Does this make my life better?
- Is there a cheaper option?
If the answer is “no,” they cut it loose. Fast.
Think of it like this: Imagine your money is water in a bucket. Subscriptions you don’t use are like tiny holes. Each one seems small, but together they can drain your bucket dry!
Here’s a tip: Make a list of everything you pay for monthly. Circle what you really use. Be honest! Then, say goodbye to the rest. You might be surprised how much you save in a year.
Remember, every dollar you don’t waste is a dollar that can grow. So, keep your eyes on the small expenses, and don’t let those sneaky expenses get away!
It might seem like a small habit, but it’s one of the secrets that helps the rich stay rich. And the best part? Anyone can do it!
4. Leave the Cards at Home
Ever walked into a store for milk and walked out with a cart full of stuff? You’re not alone.😅😅 But here’s a secret: I have seen many financially good people avoid this trap by leaving their extra money specifically cards at home.
Think about it. If you don’t have the cash, you can’t spend it. It’s that simple.
So, what do smart spenders do? They make a list before they shop. Then, they take just enough cash for what they need. No extra. No credit cards. No temptations.
It’s like going to a buffet with a small plate. You can only grab what fits, right?
Now, you might think, “But rich people can buy whatever they want!” Actually, most don’t. Did you know According to a Wikipedia study 86% of folks buying fancy cars and shiny jewelry aren’t even millionaires? They’re just pretending!
Here’s a cool trick I Use: Next time you shop, try the “cash-only challenge.” You can Take your cards as well but psychologically “only paying in cash” will act as a boundary and you will have to think twice before buying over your list, You’ll be amazed at how much less you buy!
So, before your next shopping trip, channel your inner millionaire:
- Make a list.
- Take only the cash you need.
- Stick to the plan!
Your wallet (and your future self) will thank you. After all, it’s not about how much you make, but how much you keep that counts!
5. Avoid the Quick Money Traps
Yes, it’s from Wolf of Wall Street😂😅 if you haven’t watched it please do!!
Rich people know a secret: there’s no magic trick to getting rich overnight. They don’t chase after “get rich quick” schemes. Instead, they play the long-term game.
Let’s look at some real numbers. Thomas C. Corley the author of the famous book “Money Habits” did some digging and found out something interesting:
- Only 16% of wealthy folks bet on sports each week.
- But 52% of people struggling with money do the same.
What about the lottery?
- Just 9% of the rich buy tickets every week.
- Compare that to 77% of those who are short on cash.
See the difference? The wealthy don’t gamble away their money hoping for a big win. They know better.
Think of it like planting a tree. You can’t make it grow super fast by dumping tons of water on it. It takes time, care, and patience.
So, what do smart money people do instead? They invest in real opportunities. Maybe it’s starting a small business. Or learning a new skill that can earn them more.
Here’s a tip: Next time you’re tempted by a “quick money” idea, stop and ask:
- Is this a real chance to grow my money?
- Or am I just hoping for luck?
If it’s just luck, walk away. Take that cash and put it somewhere it can actually grow, even if it’s slow.
And hey, isn’t it better to be the one selling lottery tickets than buying them? That’s how real fortunes are made!
6. Build a Mighty “Capsule Wardrobe”
Ever feel like you have a closet full of clothes but nothing to wear? Rich people avoid this problem with a smart trick: they build a capsule wardrobe.
What’s that? It’s a small collection of clothes where everything goes well together.
Here’s how it works:
- Choose a few colors that look great and complement each other (this is imp)
- Pick high-quality basics in those colors (like shirts, pants, and jackets).
- Make sure they all mix and match.
Example: Let’s say you pick navy, white, and gray. Your capsule might have:
- 2 pairs of pants (1 navy, 1 gray)
- 5 tops (2 white, 2 navy, 1 gray)
- 1 navy blazer
- 1 gray sweater
That’s only 9 pieces, but you can make tons of outfits!
More examples for women
and examples for men
The result? You always have something to wear, and it always looks good!
The best part is When you shop this way, you’re less likely to buy things you don’t need. No more impulse buys just because something’s on sale. You know exactly what fits your wardrobe.
7. Hustle on the Side
Rich folks have a cool trick up their sleeves And this is the one almost all of you are already aware of, they don’t just rely on one paycheck. They start side gigs. And guess what? It’s not just about making extra bucks.
So, why do they bother? Two big reasons:
- More Money, More Options: Duh, right? But it’s true. That extra cash can crush debts faster than a monster truck. Or, it can beef up your savings and investments.
- Less Time to Think about Spending: Here’s the sneaky part. When you’re busy earning, you’re not busy buying. Think about it. If you’re designing websites or maybe freelancing or working on a side project, you won’t have time to hang out at the mall or order takeout every night.
Now, don’t freak out. I Know your next question: what side hustle is best for you? well at NYKC we have a bunch of information on that to share with you, for a side hustle our recommended read for you:
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Final thoughts
Alright, let’s wrap this up! We’ve peeked into the piggy banks of the super-rich, and guess what? They’re not so different from us after all. Well, except for those extra zeroes in their bank accounts. 😉
So, what’s next? it’s time to act! Pick one of these habits and give it a shot this week. Maybe start with that cash-only challenge when you go shopping. Or take a hard look at those subscriptions you forgot you had (we all have ’em).
Remember, being frugal isn’t about being cheap – it’s about being smart with your money. And I will see you in the next one
