Money helps us to live the life of our dreams, as long as we’re earning plenty and not splurging too much. While most of us are busy balancing our personal expenses with one yearly trip to make sure we have a bed to sleep in and food to eat every day, many others are pretty sorted with their paychecks and credit card bills! They work as much as we do and yet their saving game has upped the ante.
We are intrigued by these common traits and rules people good at managing money swear by. Believe it or not, these 12 practical money saving tricks rich people do can change the way your savings account looks.
1. The 24-hour rule
Millionaires swear by the 24-hour rule. They may not need to give it a second thought before making an expensive purchase, but they give it a day’s time before actually making the decision. Impulsive buys happen from an emotional trigger and are often unnecessary. Ask yourself the “want or need” question and you won’t splurge as much.
2. An all-cash diet
Cashless economies are good for your wallet but aren’t too friendly with credit card bills. People who spend strategically prefer cash over a card, especially for smaller purchases. The rich live by the habit of keeping as far away from debt as possible. You can start paying for your meals in cash and avoid saving your card details in browsers to keep a tab on your expenses.
3. Set a budget and stick to it.
This sounds cliché but setting a clear budget on your payday and sticking to it will help you save loads of money. Take an honest “income vs expenditure” audit and put a cap on your personal expenditure. Financial experts call it the 50/30/20 budgeting method.