How to Live Like a Frugal Millionaire

What does it take to live like a frugal millionaire? The answer may be easier than you think. Many people assume that millionaires, especially the super rich like Bill Gates and Warren Buffett, never think about how they spend their money. After all, they make money by the millions and billions each year. The truth of the matter is that these men, and many others like them, are millionaires because they are savvy and prudent with money. So what are some of the ways that frugal millionaires live that you can incorporate into your life, and in return save money?

Things You'll Need

• Determination
• Shift in mindset
• Flexibility

Instructions

1. 

   Live below your means. How many people living below their means have outrageous credit card debt and loans they can't keep up with? Not many, generally only those unfortunate few that have had a tragic or catastrophic event in their lives. People have been encourage and enticed in to spending beyond their means. Having said that, the ultimate responsibility for money management in your life is YOU. In order to know what your "means" are, take the time to figure out how much money you have available to live on. A frugal millionaire knows how much money he or she has and where it is going.

2. 

   Stop trying to keep up with the Joneses! A frugal millionaire does not care if they have the newest or biggest homes or consumer items. It is true, that in the United States today our economy is based on consumer spending, and depends on it to survive. Having said that, there are ways to spend money more wisely that will let you live a more frugal and fulfilling life. In general a frugal millionaire will:
   * Separate their ego from what they have
   * Concentrate spending on appreciating versus depreciating assets
   * Delay their gratification - Use your things longer and wait until you have saved money for that vacation.
   * Time purchases - Wait for sales at the end of season or other deep discounts.
   * Not waste - Use what you have to its fullest and don't throw something away that you can repair or recycle.
   Remember that shopping should only be a means to an end, not the end itself.

3. 

   Here are some practical ways to implement the frugal millionaire money management practices. If you are buying a car or a boat, or other high ticket item that depreciates, buy it used. The first year or two in the life of these items have the highest amount of depreciation. Buy a used vehicle that has a pre-certified warranty and avoid leasing a vehicle unless your employer is paying the lease. When buying consumer electronics, don't be the first to buy new a technology, wait until the bugs have been fixed and more importantly, the price has come down. Also, buy only as much technology as you need. When buying clothes, buy traditional styles as much as possible and buy at the end of the season for the next year. Also, buy gently used clothes from resale shops. Buy for quality but not price. If you are buying an item that is a short term fad, buy the least expensive way you can. Eat out less. Eating at home will not only save you money, but will also be better for the health of your family. If you do eat out, eat only half of that huge portion on your plate and bring the rest home for another meal. Shop for groceries by looking for sales, coupons and what is in season.

4. 

   Finally, go green at home. This step is not only good for the planet, it will be good to your bottom line. It is like making money. There might seem to be some added expenditures initially on some of these steps but, in the long run, the money saved will outweigh the expense. Use compact energy-saving light bulbs, turn off and unplug electronic items in the home when not in use, use a programmable thermostat, and live in a house that is not super-sized.

Tips & Warnings

• Set your priorities for saving and spending and stick to them. If you get tempted, take a moment, or more often a day or two, to think it through.

• Living this way will lower the stress and unhealthy habits in your life.

• You may not end up a millionaire by taking these steps but you can live comfortably within your means, and still be frugal.