Seven Personal Finance Tips Right From The Mouths Of Millionaires

The best tips and lessons come from the best teachers. For example, we yearn to go to the best colleges because we feel they provide the best education. Similarly, when we want to know more about personal finance, would we bank on the experience of our colleagues or listen to what millionaires have to say about creating wealth? No prizes for guessing the answer here!

So here are some of the best advice given by millionaires and billionaires that might help you improve your financial situation.

Find Happiness In Saving

We always associate happiness with buying things that we love — spending money does make us happy. But, would you say the same about saving money? Maybe not. So, the real challenge here is to find equal pleasure in saving money as well. Once you start to enjoy saving money, you may even find yourself refraining from impulse shopping. Suze Orman, who is an author, as well as an expert in personal finance, is a big champion of saving money. In case you didn’t know, she has a net worth of $10 million.

Clear Your Debts

Not settling your debts on time, especially your credit card bills, might cost you a lot of extra money that you could have used elsewhere or even saved! Millionaire Mark Cuban, who is also the owner of  Dallas Mavericks, says, “Credit cards are the worst investment you can make.“ The money one can save on interest is huge. But, sadly enough, most Americans still don’t get it, and keep piling up their credit card debts.

Start Early

Start as early as you can! As soon as you start earning or even before that is good enough. Carlos Slim Helu, a Mexican billionaire who was the richest person before Bill Gates, bought shares at the age of 12! By the time he was a teenager, he was earning $10 a week back in the 1950’s. Imagine that!

Frugal Living

Billionaire Warren Buffett always has the best advice for those who want to make truckloads of money. One of his most important advice is to live simply. For him, success can’t be measured by buying a million dollar house or driving the latest model of a high-end sports car. He says success is doing what you love to do every single day which, for him, is the greatest luxury of all. Warren’s simplistic lifestyle is even reflected in his modest house in Omaha, Nebraska which he bought for $31,500 in 1958, and now valued at $250,000!

Invest For a Long Time

Long-term investments always pay off! Whatever sum you are earning, draw up a strategy, and keep some money aside every month. Just leaving them aside is saving for sure, but is not a smart move. What you need to do here is save for long-term. John Bogle, who was the founder of the index mutual funds, says investing for long and sticking to the plan will always have good results.

Have Multiple Sources Of Income

Having a regular 9 to 5 job can’t make you rich, though it can see you through a good life with little to no financial crisis. But if you really want to earn a lot of money in a short span of time, what you need is multiple sources of income. Aside from your primary income, you can opt for minor side jobs to earn secondary income. However, make sure the sources are all connected. If you want to do something entirely different, you will end up losing time and money. Entrepreneur Grant Cardone, who has a net worth of $350 million, believes in this piece of advice. Before became a millionaire, Grant had three jobs which helped him earn enough to start his venture into the real estate business.

Cars Can’t Be Your Status Symbol

Being rich doesn’t mean you have to own a fleet of high-end cars, and stop commuting through public transportation. Ingvar Kamprad, founder of Ikea, drives a 10-year-old Volvo, Jim Walton drives a 15-year-old truck, and Jeff Bezos is dropped by his wife to work in an old Honda. Kamprad shared that before buying something, he asks himself if his customers from Ikea could have afforded it? If the answer is no, Kamprad tries to stay away from it!

As you can see, some of the richest people in the world rose to that level only because of the good habits that they inculcated in their early years. If you are just starting out, follow these golden rules, but if you are above 40, start right now, it is not too late!