Do you want to become a wealth person? Of course, we all want to be! There is a very popular book known as the ‘Set for Life’, which says that- Wealth creation begins with Frugality’. Our society is blessed with good lifestyles but most of the wealthy people that you see do not actually live a sumptuous life as you get to watch on Television. Although frugality alone cannot make you a millionaire, it can certainly create a better life style. However, one needs to follow certain frugal habits to be wealthy. It requires little money to be wealthy.
**The meaning of ‘wealthy’ is different for different individuals. There is a very popular and an old saying- ‘The wealthiest person is always satisfied with the least’.
What does it mean to live a frugal life? Living a simple life without spending excessively on unnecessary things is known as living a frugal life. It means that one should learn to spend money reasonably, without making an unnecessary expenditure. A person has to make necessary adjustments to curtail unwanted expenses in order to make money.
Live a debt-free life–
Wealthy people do not have the burden to repay their debts. One cannot live a prudent life with debt burdens. As long as a person is a slave to the debtors, it becomes possible to live a wealthy life.
Earning more and paying less is the only path of becoming wealthy. So, it is important to live a debt-free life and the consumption patterns should be changed so that it fits your monthly earnings. Things should be purchased only when an individual is capable of paying.
Spend less and earn more–
What are the best ways of spending less? There are two important sides of frugality- Positive and negative sides. In a positive sense, it means that the money is utilized in the best possible manner without any wastage. Negatively, it means that a person is not willing to spend anything under any circumstance.
Consumption should be less than the earnings. The monthly income has to be calculated to know the total amount of expenditure. Gather information on all the expenses and find out the ones in which the maximum amount is being spent. Likewise, the expenditure can be minimized and there will be more room for savings.
Do not pay the full price–
To become wealthy, it is important to follow this golden rule- ‘Do not pay the full price.’ It means that even if good quality products are brought, one should never pay the full price. Shop online or look for stores that provide discounts on reputed brands. This will ensure that the best qualities are purchased at the lowest price.
Cut out the unwanted expenses–
There are various ways by which unwanted expenditure can be curtailed. These small curtailments will help in saving money which in the long run will help in wealth creation. Create a budget on a monthly basis to keep a check on where the maximum earning is being spent.
For example, the cable package you have consisted of channels which are not watched at all. Contact the cable operator and ask him to remove those channels. Also, one of the best ways that you can apply here is to buy subscriptions on Amazon Prime or Netflix because these packages are much cost-effective than the cable packages. This is just a small example.
Sell the unused possessions–
Most of you must have cupboards full of books or unused clothes, headphones, and other unused items. Instead of stockpiling them, you can sell them through online platforms. A large number of online platforms are available to sell off these unwanted items. You can also do that by visiting a delivery store. Rent out certain things from which extra income can be generated. If you have a big house, VRBO can earn rents. So, one needs to understand how to use their wealth to earn income out of it!
Leave the credit cards at home– Frugality can help in becoming rich only if you save from now. The savings that you do now is better than the savings that you do in the future. Do not carry a large amount of cash or credit cards while leaving the house. This prevents the urge to buy more things. Make a list of the things that need to be brought. Carry the amount that is needed for purchasing them and keep extra pennies for safety reasons. This way, one can stay away from extra debts.
To be honest, they are the worst enemies that one can have. However, this is not to discourage people from using a credit card. If you have sufficient income and self-control, one can make use of a credit card. But if it is your habit to use it every time, try to leave it at home. If the purchase cannot be made with the cash you have, then you probably cannot manage to pay for it.
Get a side hustle– It is important to have a side gig for the obvious reason that it helps in generating extra income. This additional income can be utilized in paying debts or buying the necessary stuff. There are numerous online jobs and freelancing options that create an opportunity to earn extra income.
You can become wealthy!!! One must be wise enough to spend their money in the best possible manner. When money is correctly utilized, the chances of wastage are minimal. Dave Ramsey, a very poplar financial advisor says- ‘Build wealth and give’. According to him, a wealthy person should contribute munificently. When you give open-heartedly, it tends to make you less selfish. Build positive habits because it is the only way by which frugality can make you wealthy!