Want to be a self-made millionaire? Billionaire? You may not have the money to invest in an up and coming business, but you can live a lifestyle which promotes frugality over spending beyond one’s means. What does this mean for most of us? Well, we may not all be able to avoid cash advances and become rich, but we can adopt frugal lifestyle choices. You would be surprised as to how many self-made millionaires continue to practice some ingrained frugal spending habits themselves.
Not all rich people grow up with a silver spoon in their mouth. Many retirees live comfortably due to following some of the practices of their parents. When there is steady income and a lifestyle which comfortably fits within its limits, a person can create a fortune for themselves or at least support a mighty comfortable retirement.
If you need cash advances to pay bills, your lifestyle does not fit your income.
Frugality is a lifestyle. It is making smart financial choices within your budget without wasting cash. I’m sure that living frugally will not promise millionaire status or promise retirement on the beach, but saving any bit along the way may just promote a savings to support a medical emergency, a loss of job or at least keep you away from needing a cash advance when a trip to the dentist is needed.
What do you do with a raise? Do you celebrate? Do you go on a shopping spree? Do you upgrade your smartphone, computer, car or even your home? A frugal person would keep what isn’t broken or run down and invest that extra money into their future.
- Upgrading your car will take extra money in terms of monthly payments and then in repair and replacement parts.
- Don’t upgrade your home just because you can. If you have the money and know you will continue to, well that is definitely a lifestyle upgrade, but if you are still building and want to create more for later, keep payments as small as possible.
- If you are going to upgrade your smartphone, wait till your contract is up in order to take advantage of discounts. Paying extra just because you want it now is not frugal by any means.
- It is okay to splurge every now and then, but you will want to save for the additional expense. Using credit cards and/or cash advances to purchase wants will not support long-term millionaire goals.
Long-term debt eats away at money which can be used for investing in the future. It’s okay to use credit cards, but prevent the debt from piling up. Find a new option when you think cash advances will be needed. The fees for the initial loan plus any interest you may pay towards a loan extension will once again waste cash to be used elsewhere.
Not all millionaires are born that way. You don’t need a special skill or a rich friend, what you do need is a clear focus, a pile of determination and the willingness to live in frugal manor. Don’t try to keep up with the Jones’ of now, but build your financial future to live comfortably later.
