Most rich people are living much more frugal lives than the ones we imagine for them. And it turns out that there’s even a whole playbook of frugal habits hiding behind those designer sunglasses. Here are six frugal secrets that the wealthy probably didn’t want you to know about.
Live Below Your Means
You’d think the rich would be popping champagne for breakfast and riding around in fancy cars all day. But in reality, most of them lead modest lives, because they know that just because you can buy something doesn’t mean you should. They live below their means.
We’re not saying they’re living off instant noodles or anything, but they aren’t always out to impress anyone either. You can copy this mentality by tracking your spending and seeing what you can cut out without feeling like you’re missing out.
Find Things That Grow in Value
So what are rich people spending their money on, then? They’re all about those appreciating assets—think stocks, real estate, maybe even a business or two for good measure. If you’re curious, start poking around for investments that don’t make your anxiety spike.
Just make sure you’re doing your homework before investing in something that’s going to do the opposite of put you in the upper echelon.
Let Interest Do the Heavy Lifting
Here’s the not-so-secret secret: rich people love compound interest. Even if you’re just throwing in a little cash every month, it adds up. Set up some kind of automatic thing so you don’t have to think about it. Your future self will thank you, and you’ll barely have to lift a finger.
Negotiate
Rich people know that if the value of something is negotiable, then so is the price. And they aren’t afraid to do it, either; they’ll gladly haggle for a better rate or speak with their supervisor openly about a salary increase. It’s not because they’re being “cheap.”
They know if they don’t advocate for themselves, they’re leaving money on the table. So the next time you’re buying something big (or heck, even small), try asking for a better deal and see how things shake out.
Have Multiple Streams of Cash Flow
Many rich people got where they are because they didn’t rely on one paycheck alone. They figured out side hustles, broke into niche revenue streams, and worked hard to make their money “work” for them.
You can do the same by starting a side gig, especially if you have a marketable skill. While many markets are seemingly saturated, all it takes is a creative angle to get the cash flowing your way.
Prevent Lifestyle Inflation
Lifestyle inflation is one of the biggest wealth killers out there. It’s the concept that once you start making more money, you need more or “better” stuff. Rich people know better than to fall into that trap, but they arguably would rather others didn’t.
Many systems rely on people thinking they need to buy things they don’t. But fortunately, you can fight back by keeping your expenses as steady as possible while stashing any extra cash for other things, like an emergency fund or investing.
