In popular imagery, the “millionaire” is often seen as someone living in luxury and spending lavishly. He owns big cars, gigantic houses, boats, servants, and regularly organizes sumptuous receptions.
Of course, such people exist.
But I will tell you a shocking truth: the vast majority of millionaires live a modest life. Their guiding principle is ” Frugality,” that is to say, to be content with a modest lifestyle. And it is precisely because they look twice before spending so that they can save money, that they were able to build their fortune.
Indeed, millionaires, especially those who have become themselves, are often masters in the art of living below their means.
They often drive used cars, live in modest homes, do not wear the latest fashionable clothes, and do not travel to larger hotels. From time to time, of course, they go to a big restaurant or offer themselves an expensive pleasure, for example, a far-off trip. But the rest of the time, they live in a modest, frugal living tips way.
In contrast, most people are used to living beyond their means. That’s why they find it hard to save money
For example, most households today feel the need to have multiple TVs, mobile phones, computers, digital cameras, MP3 players, video game players, etc … All these wonderful high-tech gadgets are often paid on credit.
I do not want to say that you should not buy such items. On the other hand, it is certain that you will not be able to build wealth unless you deeply evaluate your spending habits, and you get rid of the worst ones. Bad spending habits are the ones that prevent you from saving and investing to achieve your long-term financial goals. Of course, this is not easy. It will take patience and determination, but trust me, the results you will get are well worth the effort you have made.
Live beyond its means,
it’s spending money
that we do not have!
Only a few decades ago, people could not live beyond their means. When the wallet was empty, we could not buy anything anymore.
The proliferation of credit of all kinds, and especially the credit card has changed all that. The credit card allows you to buy things that you would not normally be able to afford. But also, by disconnecting payment from the act of purchase, it makes the expense ” lighter,” ” easier ” … ” less serious.”
You may be wondering how your neighbor is driving in such a beautiful new luxury car, and you think he has to earn a very big salary to save money. But he must also have big debts. And you will also if you persist in wanting to follow his lifestyle!