11 Tips from Millionaires on How to Save Up a Lot of Money

[Music] eleven practical money tips for millionaires themselves making healthy financial habits a part of your life is a big step towards prosperity to help you get started with that we've got 11 tips straight from the mouths of millionaires themselves if you can't wait to join the ranks of those who know a thing or two about success then hit that thumbs up and let's go already number one follow the 50 30 20 rule this rule is a great budgeting technique the idea is to divide your income into three categories the first category is necessities you should allocate fifty percent of your income from monthly expenses like rent transportation utilities groceries and basically things you can't live without the second category is personal spending it means you can use thirty percent of your salary for entertainment shopping hobbies and anything that makes you happy the last category is savings for 20 percent of your money straight into a savings account self-made millionaire grant cardone says it's crucial to have some untouchable accounts that you can't use even for emergencies he explains that he always invests his surpluses into ventures he can't access even when he's broke number two avoid poverty thinking never say things like it's too expensive or I'll never be able to afford that see that high price tag as a limit you can potentially overcome not a permanent barrier if all the goods and services in the world were cheap people wouldn't have to work hard to get them see money as something you can earn and built up not something that keeps you down and crushes all your dreams it's all about your thinking number three write out a detailed financial plan budgets aren't only for businesses and governments and just writing I'm gonna try to save more money this year isn't enough set specific goals and create a detailed plan on how to achieve them for example if you want to go to Spain next year calculate exactly how much the trip will cost take a look at your monthly income and subtract from it all your necessary expenses in the end you'll see how much money you need to save each month and for how many months setting long-term goals is even better they're excellent motivators millionaire Timothy Sykes says such goals enable you to look beyond the moment and put into perspective why you're spending your time today the way you are make sure what you're doing on a daily basis is moving you closer to your goal if it's not think of what you can change number four adhere to the rule of 100 the rule of 100 simply means doing a hundred of something within a year it could be a hundred speeches a hundred articles 100 workouts and even a hundred cakes if you like to bake it'll not only make you way more skilled in whatever you're doing but also keep you motivated and organized this principle will help in any job because practice and perseverance only lead to success do you have your own 100 in mind already then start today number five always have a plan B today you might have the job of your dreams with a steady income but nobody knows what tomorrow will bring in addition to saving up part of your salary in your own emergency fund get yourself ready for crises think of other skills you have and work on developing them in your free time expand your professional network talk to people and keep their contact info you never know where a new job might come from when you need it number six buy in bulk and on sale anyone with a warehouse club membership like Costco or Sam's Club can attest that buying in bulk saves money but this rule only applies to goods you'll actually use and won't go bad don't be embarrassed to use coupons wait for that cool gadget to go on sale or compare prices at different retailers after all a penny saved is a penny earned number seven stay away from cred cards if you have a credit card you're treading on dangerous ground credit cards encourage people to make impulse purchases regardless of whether or not they can actually afford it by using a credit card you're essentially spending money you don't actually have plus that added interest on your monthly payments means you're spending more on the same items than if you simply use cash or a debit card number it try to buy straight from manufacturers before you buy something in a store stop and ask yourself can I cut out the middleman here you'd be surprised by how often you can actually order something straight from the manufacturer and the price is almost always lower you might face a minimum order quantity but in this case you can recruit friends or family by enticing them with the low prices just like Jared Sessler founder and CEO of home pass kid when he was fed up of paying an arm and a leg for organic produce he decided to try buying from the wholesaler the minimum order amount was two hundred and fifty dollars so he teamed up with friends to get what they all wanted for a way more affordable price number nine live below the means the biggest problem for a lot of people is that they spend more than they earned they buy a nice house in a prestigious neighborhood just because they want to keep up with the Joneses and impress all their friends and family instead of putting on a facade for others it's better to just live below your means so that you have more money coming in Grant Cardone admits he was through driving a Toyota Camry when he became a millionaire he had been putting off buying his first luxury watch and car until his business ventures were bringing in stable and constant flows of income living below your means doesn't mean saying no to all the joys of life you just need to use some creativity and reason having a game night at home can be just as much or even more fun than going out and you don't need to rush off and buy the newest smartphone model if your phone is working just fine number 10 start earning passive come I hate to break it to you but it's nearly impossible to become rich if you breaking your back for every single dollar of course most of us work this way and our time literally equals our money but for most millionaires it's completely different they don't earn money just by spending time at work they get their money to work for them so their time is more valuable than money that's why it's really important to have some passive income one way to do it is through investments business magnate Warren Buffett recommends investing in something you know if you aren't a financial guru yourself consult an expert to learn about all the risks and opportunities number 11 surround yourself with successful people this idea is easily explained by how much the people around you influence your life and mindset if you get along with talented people who share your vision it's easier to generate creative ideas and bring them to life if you need to first find some successful people you can meet them at networking events webinars or on social media author of how rich people think Steve Seibold explains that your own net worth mostly mirrors the level of your closest friends it's best to avoid people who dream your energy or pull you down emotionally and don't support your dreams and surround yourself with people who not only inspire you but also encourage you to take action and always dream big do you already follow any of these tips or maybe you have your own secrets to successful saving please share them with us in the comment section like this video if you found it useful and subscribe to our channel where more cool updates are always coming your way take your shoes off and stay a while with us on the bright side [Music]

Channel: BRIGHT SIDE

Views: 1,818,091

Rating: 4.8747497 out of 5

Keywords: save money, saving money, how to save money fast, secrets of millionaires, rules of millionaires, secret tips, how to become a millionaire, bank account, life hacks, financial tips, career, how to invest money, financial cushion, savings account, passive source of income

Id: jj_oSSXnphk

Length: 7min 59sec (479 seconds)

Published: Tue Mar 20 2018