August 9, 2021
5 Lessons About Saving From Some of the World’s Wealthiest
Who better to get your financial advice from than the world’s top one percent? Many of the world’s billionaires didn’t grow up with a silver spoon or a trust fund. Some were high school or college dropouts while others failed constantly before they made it big. Here are some life-changing lessons about saving that these billionaires had to learn on their own and execute with success.
1. Get Paid First
When your paycheck hits your bank account, you have either two options: spend first and then save or save first and then spend. If your approach is usually the first one, then that might be the reason you’re having issues saving money or accumulating wealth. Setting aside some predetermined portion of your paycheck first and then spending the rest on necessities is how wealthy people stay wealthy. They reinvest the money and leverage the power of compounding interest. Save at least 10% of your monthly income and then use the rest to pay bills.
2. Live Humbly
One of the world’s richest people, value investor Warren Buffett, still lives in the same household he lived in before he accumulated his wealth. Today, Buffett is worth roughly $100 billion and still resides in his humble five-bedroom home in Omaha. Another wealthy business magnate, Carlos Slim, who has a net worth of around $70 billion, also lives in the same address he’s had for over 40 years.
3. Have a Budget Plan
Billionaires know the importance of keeping a well-organized budget. They have accountants who organize every account statement, save every receipt, and make sure every penny is accounted for. In addition to personal accountants, they have investment managers and financial advisers overseeing their assets, from rental properties to stocks, to make sure their money is being utilized efficiently.
4. Have the Right Mindset
Your mindset is what forms your present and future life. What you choose to believe in will inevitably guide your actions and habits. This is the mantra that many billionaires, including entrepreneur and celebrity Oprah Winfrey, have adopted and consistently practice. Change how you think about your finances and what your beliefs are about your financial abilities and limitations.
5. Have the Right People Around
George Soros, one of the most successful investors of his time and famously dubbed as the man who “broke England’s bank”, says that friendship based on business is better than business that’s based on friendship. Having the right people around can help better your physical, mental, spiritual, and financial health. If you’re always with friends who want to eat out or barhop every weekend instead of discussing business ideas, it may be time to find new people to regularly interact with.
These are only a few of the many financial lessons you can take from those who’ve made it big. Keep in mind that simply following these lessons won’t make you into a billionaire overnight. The other half of learning how to save money is learning how to grow it.