One of the best ways to understand how you can better manage your own money is by looking at the frugal habits of the super rich.
You’d be surprised to discover the net worth of that couple that drives a 2003 Honda Civic and never seem to eat out at fancy restaurants.
If you want to see your net worth and savings increase then you need to be sure that your income is greater than your expenses.
That can be pretty hard to do if you’re eating out every night and buying things that aren’t necessary.
One of the best ways to improve your life is by emulating those you look up to.
That doesn’t mean copy them completely, but find out what makes them successful and see how you can apply those things into your own life.
While you might be used to seeing rich people running around the world flaunting their fortunes, many are frugal people just like you.
They live a happy life because they do what they want and they know what they want.
Just because you have $500,000 in savings doesn’t mean you need to go spend it.
Finding Your Quality of Life
One of the most important aspects of frugal living is understanding the quality of life you want to attain.
Let’s face it, it’s hard to be frugal if you are absolutely miserable.
Eventually, you’ll bust and go on a wild shopping spree just to bring some happiness back in your life.
It’s important to keep in mind that frugal living isn’t for everyone.
Some people really do need a lobster dinner twice a month or a new pair of shoes.
The best thing you can do before starting on your frugal journey is understanding the lifestyle that you want to live and the one that you will be happy with.
Hopefully, the two overlap.
9 Frugal Habits of the Super Rich
Of course not every rich person has these habits. People gain wealth in different ways and if someone hits a giant windfall of money that they aren’t prepared for then they can easily lose it.
There are pro athletes that live in their vans or simple apartments. It’s not that they can’t spend more, it’s that they don’t need more.
That’s the common denominator on this list of habits of the super rich.
1. Live Below Your Means
Some people have a bad habit of making sure they spend every penny they have because they know more will come later.
It’s like being a procrastinator, you’ll continuously fill up the time until there is no time left.
When you live below you mean it means that you are saving more than you are spending.
If your household income after taxes is $40,000 a year and your expenses are only $20,000, then you are living below your means.
If you are happy with that situation then continue going that way.
2. Choose a Modest Home
Mansions are cool but at the end of the day what purpose do they serve?
If your family can live comfortably (and happily) in an RV then is there a need for a house?
If that studio apartment suits you do you need to upgrade?
The need for more space because things are getting crowded is understandable.
The need for more space just to have space doesn’t help you out in the long term.
3. Become a Freebie Hawk
When Hawks are in the air they are constantly looking out for prey.
There are many freebies being offered all over the place that will get you buy on certain things.
For example, if you love makeup, then don’t hesitate to find free samples of beauty products
Unless you are going out every single night (if that’s the case, why are you reading this article?) then these free products can last you quite a while.
Beyoncé actually prefers to adorn herself with the free gifts she is sent by jewelers and designers.
4. Eat Frugally
Just because that value meal at McDonald’s is only $5 that doesn’t mean it is cheap.
Those purchases add up.
Instead, get yourself a crockpot and cook up some cheap meals that will last you a while.
Eating out is one of those sneaky costs that you don’t notice until you check your bank account and realize there is no money in there.
5. Have a Side Hustle
One of the best ways to save money is by making more money.
Sounds easier said than done, right?
Thankfully, with the Internet, you have a lot more options of making money from home that doesn’t involve adding another back-breaking 9-5 job to your life.
If you don’t plan on living the super frugal life (reusing your paper towels) and still want to experience lots of things then your regular job can cover your bills while the side hustle covers the fun stuff.
6. Eat Off a Grocery List
If you can get into the habit of planning your meals you’ll find that not only are you saving money but you are also saving time.
Impulse purchases are one of the downfalls of people looking to save money.
Find some meals that you love, put them on the grocery list, and stick with them.
7. Figure Out How Much You Need
Can you live off of nothing?
Some frugalistas love to try no-spend months where they go a whole month without spending.
Of course, they pay their bills but if one of their friends wants to go out they don’t spend.
They stock up on all of the food that they need and the entire month is dedicated to saving.
How much do you need each day to truly survive?
8. Only Buy What You Need
Maybe you don’t need to buy those extra coins for Candy Crush.
Do you really need popcorn at the movies? Do you even need to go to the movies?
We spend so much money on stuff that we don’t need.
If you’re going to wear a coat twice a year at most is it worth purchasing?
9. Keep the Entertainment Simple
When you’re trying to save money it can be easy to think that means you are left with nothing to do.
Everything costs money!
Well, not really.
Instead of going to the movies why not purchase a Netflix subscription and make every week a theme.
This week it’s terrible 80s horror movies.
It’s easy to forget that there are other things out there that don’t require spending money.
Having More Doesn’t Mean Spending More
You can’t do frugal living if you treat your money like a gas. A gas fills up any container that it is in.
Instead, you need you to treat it like a solid that doesn’t change much.
Having more money in the bank doesn’t mean you need to spend more money. It just means you have more money when you really need it.