Contrary to what many people think, frugal living isn't just for people who can't afford it. Wealthy people regularly look for ways to save money.
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After all, they might have something to teach us when it comes to frugal habits.
“One of the core habits that stands out is living below your means and investing the difference,” said David Brillant, tax, trust and estate attorney at Brillant Law Firm. .
“Many self-made millionaires swear by this rule: It's not just about saving money; it's about wisely deploying the money you save into investments that grow over time,” he explained.
“Whether it's a diversified portfolio of stocks, bonds, real estate or tax-advantaged retirement accounts, the focus is always on long-term growth rather than short-term gratification. This approach isn't just about being frugal, it's about using resources strategically.”
Here are more strategies you can learn from self-made rich people.
they pursue knowledge
Another important habit, according to Brilant, is the continuous pursuit of knowledge.
“For example, many of my clients are avid readers and learners and are always trying to understand more about market trends, tax laws, and investment opportunities,” he explained.
This constant quest for knowledge allows us to make informed decisions, reduce risk and optimize financial growth, he said. “This is a reminder that investing in education and understanding financial issues is just as important as investing your money.”
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they pay themselves first
Dana Ronald, a tax expert and president of the Tax Crisis Institute, says one of the most effective frugal habits adopted by self-made millionaires is “paying yourself first.” “This means setting aside a portion of your income for savings or investments before paying your bills or expenses.”
“As a financial advisor, I always encourage my clients to follow this habit because it helps them build wealth over the long term. I also encourage them to diversify their investments and put all their eggs in one basket. “I advise people to avoid it,” he said.
He took advantage of his own frugal habits, which he explained helped him achieve financial stability and success early in his career. “It was very important to me to save and invest regularly, even if it meant cutting back on luxuries.”
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they delay gratification
“Delaying gratification is another key habit that has helped me and my clients build wealth,” Ronald said. “This means resisting the urge to incur unnecessary expenses and focusing on long-term goals instead.”
For example, wealthy people often resist the urge to shop online or waste groceries.
They don't spend money where they don't need it
CoinLedger CEO David Kemmerer said this is an invaluable frugal habit to adopt. “Many of the self-made people I know have a general policy of not spending money where it's not necessary.”
“This means giving up your gym membership in favor of outdoor exercise, or skipping the bookstore in favor of the library,” he explained. “If you're looking to build wealth, doing things like doing your own home repairs and renovations can sometimes be a good frugal habit and teach you some skills at the same time.”
Leverage your network
“Networking and building strong relationships has proven to be invaluable not only for expanding business opportunities, but also for wealth building strategies,” said Mr. Brillant.
This type of investment can ultimately lead to big savings.
“Self-made rich people are often surrounded by a network of knowledgeable advisors, mentors, and peers with whom they can learn and share insights,” he explained. “For self-made wealthy individuals, frugality often boils down to being disciplined and strategic in their financial decisions, continually seeking knowledge, and leveraging professional relationships.”
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they live below their means
“One of the common characteristics of people who have built their wealth through their own efforts is the ability to live below their means,” said Dominion President Ethan Keller. “As their income increases, they choose to maintain a simple lifestyle and save and invest the difference so as not to fall victim to the phenomenon of lifestyle inflation.”
He pointed out that using this frugal technique can greatly contribute to long-term wealth accumulation.
“More and more self-made wealthy people are adopting a minimalist lifestyle with the goal of focusing on the things that actually add value to their lives,” Keller explained.
“They don't spend money on things they don't need, declutter their living spaces, and value experiences over tangible things. They save money, reduce stress, and reduce stress by simplifying their lives. It can improve your overall happiness, which can also save you money.”
They always negotiate for a better deal
“Self-made rich people never leave money on the table,” says Janita Grift, frugal living expert and owner of Frugal Fun Finance. “They always ask for discounts and offers on services and are not afraid to shop around.”
“I personally saved hundreds of dollars just by negotiating my internet bill, cell phone bill, and rent,” she said.
Choose basic clothes over designer clothes
“The wealthy know that they can buy clothes that look just as good as designer clothes at a cheaper store,” Grift says. “I buy basic clothes that look just as good at cheaper stores and invest the extra savings. That's saved me thousands of dollars and helped me build wealth. .”
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They choose quality over quantity of clothing
According to Grift, self-made millionaires choose quality over quantity when it comes to clothing, shoes, and accessories.
“I have three designer handbags, four pairs of neutral-colored shoes, and two watches that I can pair with almost every outfit I own,” she said. “By owning minimal items, I saved hundreds of dollars that I could instead invest and use to build wealth.”
They buy second-hand, not retail.
Wealthy people are getting creative and finding designer items at better prices, Grift said. “I mostly buy cheap, generic clothes, but I understand the importance of investing in a distinctive bag or watch to look polished and professional.”
“For example, I often visit consignment stores and thrift stores to find designer handbags and workout gear, rather than retail stores,” she said. “I also buy second-hand kitchen appliances such as blenders, kettles and silverware because I know it costs a fraction of what it would cost to buy the exact same thing new.”
They are surrounded by other supportive and frugal people
“Who you're friends with influences your habits, including how much money you save,” says Grift.
“I continue to maintain friendships with people who respect my budgeting strategies and are frugal. My friends always stay home and watch movies instead of going out for dinner or cocktails. “I enjoy cooking and cooking,” she said.
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This article originally appeared on GOBankingRates.com: 11 frugal habits you can learn from self-made rich people
