12 Saving Secrets All Millionaires Follow

[Music] it might seem like the rich do nothing but splurge their money on life's luxuries and a lot of them do but truly wealthy people know that a penny saved is a penny earned so why not follow their lead instead their tricks will put you on the road to a bigger bank account and they include number one dealing with bills instantly it's never fun parting with your hard-earned cash when those bills come piling in so we naturally try to put them off for as long as we can but instead of saving you money it actually has the opposite effect simply because unpaid bills don't allow us to manage the rest of our money as effectively as we should as a result you often spend the last bit of your coin on your bills and end up with almost nothing so kick this bad financial habit and make it a rule to pay all your fixed expenses on the very first day through automated systems this way you always have a clear view of your financial situation number two making shopping lists if you love shopping you know how hard it can be to stop yourself from buying something especially if it's on sale and that's when a shopping list can come in handy the truth is it only seems like you're saving money when you buy stuff on sale in reality you subconsciously pick up way more items than you need and end up overspending if this sounds familiar to you then plan your shopping list in advance and schedule your big purchases during sales to get a good bargain number three have no spending days if lists don't put an end to your impulsive shopping it's time to try the ultimate technique no spending days your task here is very simple forbid yourself from spending money on any unnecessary things for one day try it a couple of times and then raise the bar by not buying anything special for a whole weekend once you pass this test you can take on the biggest challenge of all and stop splurging on things for a whole week this little exercise will train your willpower and make it easier for you to control yourself and save your money number four paying with cash going cashless seems really convenient but this way of handling your finances isn't that effective once you see just how easy it is to swipe that little piece of plastic that's why millionaires and people with high income always prefer cash over cards especially when it comes to small purchases first of all when it comes to credit cards it keeps you as far away from debt as possible which is always a plus especially when you consider the fact that cash has no interest not to mention you become much more aware of your spending when you have physical money in your hands and you see the Sun getting smaller and smaller you'll be shocked how quickly it goes number five saving change when you start paying with cash you inevitably collect a lot of loose change and even though everybody hates it and wants to get rid of it as soon as possible you really shouldn't take that coin for granted any loose change that you drop in your bag and forget about can buy you a great cup of coffee or a snack that you normally pay for it with the rest of your money start keeping your change and you'll see how quickly your daily expenses will decrease number 6 repairing things whenever something breaks our natural instinct is to replace it with a new one but most of the time it can be quickly and easily repaired a lot of millionaires agree with this too and strongly believe in committing to a purchase until its last breath they even stick by this rule for gadgets and devices while most of us are hankering to get the latest model before the one we have even stops working truly wealthy people fix what's fixable plus why make more trash when you don't need to has a bonus you'll decrease your ecological footprint number 7 spending money on personal growth who said that saving that has to be miserable you can tackle this problem from a completely different perspective like splurging on things that make you better instead of buying yet another pair of shoes Kimberly Palmer a personal finance expert at nerd wallet recommends doing just that and not being afraid to buy yourself a good laptop reliable car or any other thing that can open new doors for you these types of purchases will inspire you to improve in your work field and therefore help you earn more money in the long run number eight investing in services that save time while we're on the topic of effectively splurging money according to Business Insider the rich don't hesitate to spend money on services that save their time either the millionaire mindset that can lead you to wealth is simple time is money period getting your groceries home delivered using laundry services or renting a relatively expensive space to stay closer to work can save you tons of time which translates to money in your wallet you can use that extra time to get better at your craft start new interesting projects and brainstorm for more innovative ideas your options are limitless number nine putting money into your hobbies one of the most important things in life is to love what you do and this ultimate truth basically rules millionaires lives they buy stuff that makes them happy and use this happiness as a fuel for inspiration in their work so don't stop yourself from buying a guitar if you're passionate about learning how to play it or spending money on a good camera if you want to get into photography these hobbies will complete your life and give you more energy for work just make sure that your savings allow for it and go for number 10 splurging on new experiences most millionaires have pretty colorful lives and it's all thanks to their ability to invest money not only in cool ideas but also in new experiences every experience whether it's good or bad teaches us an important lesson and broaden our horizons showing us our true abilities and talents so don't be afraid to step out of your comfort zone try skydiving take a trip to an unfamiliar country or start your own project you've always wanted to bring to life these experiences will make you stronger and reveal your greatest strengths and weaknesses that in turn will put you on the path to financial success number eleven following the 24-hour rule the 24-hour rule can help anyone whether you're a millionaire or you barely get by paycheck to paycheck let's say you're out shopping and you see the coolest decorative art ever of course you feel the strong urge to buy it right here and right now but instead of doing that you go home and let 24 hours pass believe me when you do it for the first time you'll be amazed by how quickly this sudden desire fades away this little trick helps you understand whether you really need this thing or if it's just one of those impulsive purchases that you'll forget about the next day and most of the time it's the latter number 12 the 50 30 20 method of course you can't talk about saving money without mentioning the importance of budgeting do you think that millionaires just allow themselves to endlessly spend money on everything they see of course not instead they use a very simple 50 30 20 budgeting method that helps them organize their expenses so if you want to finally start saving up some money here's how you should divide your income 50% goes to all your living essentials rent utilities groceries and so on 30% is for personal things like entertainment shopping hobbies and other things that make you happy and 20% must go straight to your savings account this way you'll be able to spend money on yourself but still save enough of it to go on vacation or invest in something later on sounds like a plan to me do you have any money saving tricks of your own share them down in the comments remember to give this video a like share it with your friends and click subscribe to always stay on the brights side of life [Music]

Channel: BRIGHT SIDE

Views: 916,601

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Keywords: bad habits, good habits, productivity, successful people, stop doing this, motivation, do this to be rich, what the rich do, rich habits, habits of successful people, how to become a millionaire, will you be rich or poor, 50/30/20 Method, 24-Hour Rule, splurging money, spending money, personal growth, saving change, paying with cash, “no spending” days, shopping lists, dealing with bills

Id: thSVZv0tMTk

Length: 8min 46sec (526 seconds)

Published: Wed Mar 13 2019