7 Money Saving Rules That Rich People Follow

Money can help us live the life we want, as long as we earn a lot and use it wisely. While most of us are struggling to balance our personal expenses with an annual trip to make sure we have a bed to sleep in and food to eat every day, many others are pretty tripped with their paychecks and credit card bills! They work just as hard as we do and yet their backup game has upped the ante.

Money can be saved with simple actions and lifestyle habits that are easier to develop than you think. Don’t wait any longer and start today… to get rich.

Believe it or not, these 7 handy money-saving tips can change the way your savings account looks.

1. The 24-hour rule

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Millionaires live by the 24-hour rule. They may not have to think twice about making an expensive purchase, but they do give themselves a day to think before making their decision. Impulse purchases are the result of an emotional trigger and are often unnecessary. All you have to do is to ask yourself the “want or need” question and you won’t make as many foolish purchases.

2. An all-cash diet

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Cashless savings are good for your wallet but not too friendly to credit card bills. Strategic spenders prefer cash to a card, especially for small purchases. The wealthy live with the habit of staying as far away from debt as possible. You can start paying for meals in cash and avoid saving your card details in browsers to keep track of your spending.

3. Set a budget and stick to it.

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It may sound cliché, but setting a clear budget on your payday and sticking to it will help you save a lot of money. Take an honest look at your “income and expenses” and cap your personal spending. Financial experts call this the 50/30/20 budgeting method.

4. Spend on things that help you make money.

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You don’t have to be unhappy to start saving money. Rich people spend money on things that guarantee a long-term investment. Making purchases that help you in your job, contribute to your current job, or increase your overall income is a good thing.

Kimberly Palmer, a personal finance expert at Nerdwallet, is happy to spend money to splurge on work clothes, a good laptop, or a reliable car.

5. Bills first, rest later!

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People who manage money well do better than us because they have a clear understanding of their fixed expenses. They swear by the principle of paying their fixed expenses from day one via automated systems so they have a clear vision of how to spend the rest of their money.

6. Buying term life insurance

Life insurance, like a retirement savings account, seems confusing and often gets sidelined, Carla Dearing continues. But it doesn’t have to be complicated. “All you have to do is buy term insurance for 20 to 25 years, or until your children finish school (if you have any). There are many inexpensive plans available, and it’s one of the best decisions for you and your peace of mind.

7. Do 30-day spending fast

Juice and water fasts dominate in the food realm, but one that would benefit you the most is financial. This involves a full month of no spending other than regular bills, and saving any money you don’t spend, says Carla Dearing. This no-spend month will not only be a good start to your savings account, but also a wake-up call to your multiple wasteful habits that will motivate you to continue your small savings.

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