Financial tips from millionaires to save money | DebtsOn June 13, 2019 by Earl Lipton
Who better to give advice in the field of finance, than millionaires ?. Below you can meet four financial tips from millionaires to save money.
Do not consume more than necessary
The first of the financial advice given by millionaires, refers to consumption habits . The only way to produce long-term savings is to spend less than you earn. To do this, you should consume only what is necessary to live properly and be happy, avoiding ostentation and waste.
If you worry about demonstrating a high life status, it will not only generate unnecessary expenses; It will distract your attention and divert resources that you could use to leverage your economic success.
Spend with criteria
Spending with judgment is acquiring goods and services according to their real qualities, and not by their brands or notoriety. It is a principle that you should use both in your venture and in your personal life.
For example, you must understand that your employees are worth more for their contributions and work performance than their academic degrees. And that you must evaluate the materials and equipment for their real overall quality, beyond a brand. In this way, you may get better quality with less investment , saving.
Avoid debts that do not generate production
It may be that the dream of your life is to have a beautiful holiday home on the beach. But keep in mind that if you borrow to acquire it, it will be a debt that will only generate maintenance costs. On the other hand, if you buy a vehicle on credit that will allow you to expand your business, you will be acquiring a productive debt .
The idea of this principle is to avoid indebtedness for reasons that will not enhance your ability to generate income .
Save to invest
This is the primary financial advice of millionaires to save money. It refers to all savings that you achieve by applying the above principles, you must use them to invest.
It is clear that you must have some money saved to face unforeseen events and emergencies that may arise. But you should not become obsessed with having large amounts of money in savings instruments. Have only what is necessary to cover an emergency and use the rest to invest . Only by saving you will not become a millionaire, you must risk investing money in your company or another form of investment.
In this principle we could quote each and every one of the billionaires of the world. It is clear that none of them achieved that condition only by saving their money.