Thursday, July 04, 2013
By Barbara ProninIt stands to reason that people who live modestly and invest wisely are on the surest pathway
to wealth and financial freedom. Frugal shopper Kyle James, who operates a website called
RatherBeShopping.com, makes a habit of tracking the ways wealthy people spend their
money.
From his observations, here are five widespread frugal habits endorsed by many of the rich
and/or famous:
1.Drive a modest car – Some people allow the car they drive to define their character or
image. But Facebook founder Mark Zuckerberg drives a $30,000 Acura sedan, the kind
of decision seconded by many wealthy people who know the purpose of a car is simply
to get us from place to place.
2.Buy a modest house – As many people know, Warren Buffett still lives in the Omaha,
Neb., home he bought in 1958 for $31,500. Taking his cue, and not undertaking a large
monthly mortgage payment, will allow you to use the money you save to build up a
savings and retirement fund.
3.Don’t carry a full wallet – Walking around with a wallet full of cash, or a credit card or
two, can make it tempting to buy more than we need. Texas oil executive T. Boone
Pickens still shops with a grocery list and carries only enough cash to buy what he
plans to buy.
4.Don’t pay full price – Actress Hilary Swank, who has a net worth of more than $40
million, is frequently seen using coupons at the grocery store – and First Lady Michelle
Obama often opts to shop at Target. Looking for bargains leaves you with more money
to save or invest.
5.Have an action mentality – Almost all self-made millionaires are people of action.
They do not have a “lottery mentality,” waiting for something good to come their way.
Rather, they take appropriate risks, are always looking to improve themselves, and
seek knowledge as the best way to gain a competitive financial advantage.
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