Have you ever wanted to know the financial security secrets of the most successful people on the planet?
We’re cracking the vault on the ten most useful frugal living habits you can adopt today.
They Stay in Control of Their Money
Highly successful people always know where their money is and where it’s going. The easiest and cheapest way to follow suit is by keeping a budget. But many successful people know not just to have a weekly or monthly budget — they budget for vacations, large purchases, and anything else that can help them have more control over the end goal.
They Practice Self-Discipline
Not everyone who is good with money is naturally good at it. Many successful people have to fight the urge to spend just like anyone else. But they actively practice self-discipline, pausing before making impulse purchases and taking a breath before spending extra for convenience.
They Eliminate Debt
Successful people know that debt is one of the things holding them back from financial freedom. They prioritize paying off debt so they aren’t shackled to paying hundreds to credit card companies just to keep their head above water.
They Have Safeguards and Backup Plans
You won’t find a successful person who doesn’t have at least one of the following:
- Well-stocked emergency funds
- Retirement
- Savings accounts
- Investments
Many will have one of each! If you want to be successful, start by building one of these financial parachutes for yourself.
They Have Strong Financial Literacy
Successful people know they don’t know everything. They go out of their way to seek out answers. They take advantage of free resources like blogs to improve their understanding of the finance world.
They Spend Less Than They Earn
Living frugally becomes the norm for successful people. They know their income, track their expenses, and never spend more than they make.
They Avoid Gambling
Gambling is an addicting trap that can drain your bank accounts if you aren’t careful. Calculated risks through investing are one thing, but throwing your life’s savings away in a casino based on a gut feeling is quite another.
They Set Goals
Budgeting and financial planning are much more challenging if you don’t have goals to meet in the future. Ask yourself what you’re saving for and how you want your finances to look in six months, a year, and even five years.
They Don’t Succumb to Lifestyle Inflation
Lifestyle inflation happens when you see an income boost. You feel like you deserve to spend more because you’re making more. However, successful and frugal individuals know this can be a never-ending cycle; it’s not the secret to satisfaction, so avoid it and invest in yourself instead.
They Value Their Time
Time is money, and successful people understand the value of both. Whether this means they’re not wasting time at a job that doesn’t pay them enough or they’re spending their free time making extra cash on the side, successful people know their worth and don’t compromise on it.
