Financial Tips #1: Be frugal! Spend below your means!
Hello! Today will be the first time I share some of the financial tips that I am using to manage my finance. One of the most important tips is be frugal! Yeah, I know this sound so out of fashion and not cool but it is still proven to be the most effective one.
When we think about the rich & famous, we will think of how lavish they are. We think that they wear branded and expensive stuffs. They dine at expensive and classy restaurants. They drive luxury cars. They live in mansions or big houses. These are what we think of them, right?
Well, after careful research, I found out that many of the billionaires and multimillionaires live below their means except a few.
For an example, the founder of IKEA, Ingvar Kamprad buys vegetables during afternoon to have discounts.
The world’s second richest man, Bill Gates flies economy class for his business trips.
The world’s third richest man, Warren Buffet, lives in the same house that he bought 30 years ago.
These are some of the examples that I read before. This concludes that the image of billionaires and multimillionaires that the mainstream media portrays is very different than reality. Even the money that they spend on their toys is maybe 10% or 20% of their monthly income.
I am very shocked when I found out this fact! So, I am now learning how to live below our means!
So, do you spend below your means or spend well above your means?
There will be more financial tips coming. Keep coming back! I will write about practical ways to become wealthy too.