Want to be a millionaire? According to Inc., it’s not that crazy of a goal anymore. One in 20 American adults are considered millionaires. This is 5% of the population, and it proves that you and I can become millionaires, too! Although having a bank account with a million dollars rarely happens overnight, it’s achievable if you follow the eight frugal habits listed below.
- Live below your means. While status items like a silver Tesla or Balenciaga handbag are fabulous, you don’t need these items to live. In order to extend your wealth, you have to live below your means. If you don’t really need a giant house with four bedrooms, don’t buy it!
- Never pay full price. The ultra-rich never pay full price for anything. Look at famous actresses. They don’t buy the the expensive gowns they wear to the Oscars; designers give them the dresses for free. John Rampton, the author of the Inc. story, says “households that average an income of $100,000 or more use more coupons than households that earn under $35,000 annually.”
- Cut out unnecessary expenses. Small unnecessary expenses add up over time. Pay attention to your bank account, and be sure that your bank isn’t charging you unnecessary fees.
- Rent or sell your current possessions. If you have a closet full of clothes you no longer wear, bring them to the local consignment store.
- Leave the cash and plastic at home. “If you leave the house without your credit card and a large amount of cash, you won't be tempted to purchase items that you don't really need,” Rampton explains. He also says that “ if you don't have the cash to make a purchase or pay off your credit card, then you probably can't afford the purchase in the first place.”
- Don’t waste money on get-rich-quick schemes. Nobody gets rich quickly. The probability of you winning the lotto is slim to none, so don’t waste your money on gambling.
- Go green. Save money by carpooling to work instead of driving yourself. Collect cans and bring them into a recycling center to get cash. Turn down your heater, and use blankets or a space heater instead of heating your entire house.
- Get a side gig. A side job will bring in additional income. It will also cause you to spend less, because you will spend more time working instead of spending your money on leisure activities. Every little bit helps!