“A penny saved is a penny earned.” Today I thought I would take a minute to write about wealth building through my favorite frugal tips.
Living frugal isn’t for everyone, but many millionaires (and yes billionaires) have been frugal at one point in their life. Billionaire Mark Cuban once mentioned on an episode of Shark Tank that he used to eat mustard sandwiches to save money. Gross!
While I don’t want you to eat mustard sandwiches, I think we could all learn to be a bit more frugal. Here are a few tips for building wealth while being frugal.
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Frugal Habits for Wealth Building
Only Buy What You Need
If you are seriously considering going frugal to build wealth, then it’s time to be picky about your shopping habits. That’s right. It’s time to suppress your inner child and bring out the less fun and more responsible version of yourself.
I know you probably have been eyeing new headphones, a flat screen TV, or some other luxury item. The problem is that it’s hard to build wealth when you spend your excess money on things rather than investments.
I challenge you to ask yourself when shopping, “Is this an item I need or want?” I know it’s easy to give into your inner child, but stay strong! If you only buy the things you need, then you’re well on your way to building the wealth you want!
- How to budget for MAXIMUM money saving!
- How to SAVE MONEY when you’re BROKE!
- EASY ways to TRICK yourself into saving more MONEY!
Live Like You Have No Money
I know you’re probably not thrilled with the idea of living like you have no money, but you can save a lot of money if you do so.
Can you grow vegetables at home? Make bread from scratch? Drink water while avoiding soda and juice?
I challenge you to see how long you can go without spending any money. Alternatively, can you live on a dollar a day?
Live In A Small Home
We all need a place to live, but the problem is housing can be so expensive!
You’re typically stuck paying rent to a landlord or a bank. If you want to build wealth, consider finding the cheapest place to live. If you can find a small and inexpensive home that you can buy, great!
I recently came across an article online about a college student who built himself a tiny house on the back of a trailer for only $15,000 because he was appalled at the high cost of student housing. He parks it on a friends lot and uses their electricity in exchange for childcare services.
What are you paying in rent right now? Can you reduce your monthly expenses by finding a cheaper housing alternative?Sharing is Caring!Click To Tweet
Have Two Jobs!
Seriously, have two jobs and save one salary while you live off of the other. If you’re married, live off of one spouse’s salary and save the other.
I can’t tell you how much this strategy can change your life if you don’t already follow it. This approach works better for higher income families as if each spouse brings in $50k a year it’s easier to live off of then if each spouse made $20k a year.
Just make sure to save what makes the best sense for your situation. If you can only save half of one spouse’s salary, then do it. Don’t let your savings go to waste, talk to a financial advisor to invest your savings and start taking advantage of compounding interest immediately!
If you’re looking to save more money, consider taking our free budget and save money course. The course is packed full of information to help your family save money.
What are your favorite frugal tips for wealth building? Let me know in the comments below.