When I was younger, whenever I heard the word frugal, I instantly pictured someone that “looked a mess.” I envisioned a person wearing the same clothes from thirty years ago, who only shopped at flea markets and yard sales, and hadn’t had a hair cut in ages. For many, that may be true, but “today’s frugal,” are smart and still have some of the “new toys” each of us has our eyes on. The key word, is “smart.” To get rich, you need the means to build wealth, while saving wisely. Here are some of the ways today’s frugal get rich.
– Hard work.
If you’re going to challenge yourself to reach a million dollars, you’d better start working harder for it now. If you don’t have a job, you need to get one, any one. You see, no matter where you start, you’ll have more than you’d have if you did nothing. As that money’s coming in, you can plan on other things to do to accumulate more. If you have a decent paying job now, it’s time to ask yourself, what can I do to earn more? “Where we’re at, is what we get,” so if you want a “bigger piece of the pie,” you’d better start earning it. For any of us to earn money, especially if you’re talking big bucks, you’ll need to get out of the starting gate. You’ll need money to save, money to build a business up, money to invest, essentially you’ll need money to build more money. By working hard, you’ll earn what’ll allow you the power to build up your wealth.
– Be responsible by making wise spending decisions.
Before you spend a dime, do you ask yourself, do I really need this? If you don’t start making that a habit, you’ll keep on throwing your money away. The key to getting rich, is earning money, and keeping more of it so it can work for you. Take a look at your bank account. Would you rather have more or less money in it? Each time you’re about to spend, picture your account, and weigh if the purchase is worth it. Don’t mistake this with being “flat out cheap,” because today’s frugal are not cheap, we’re smart. We want the best things, but we weigh the consequences and our earnings potential, before deciding to go ahead and buy. You must make sure you can afford to make the purchase, and if you’re saving for something else, you’d better think about how long it’ll take for you to save that much again based on your salary. It may end up not being a wise decision at the time, but may work out in the future.
– Reward yourself with the important things.
What are the most important things in life “to you.” You need to distinguish between what you absolutely love, and what “appearances” mean to you. Do you do things for you? Or, do you do things for status? This can be trouble for most people, because they end up spending money on things they don’t really want, but because it’s the “coolest new toy.” You need to avoid that at all cost! You should however, reward yourself with the things you truly want. What things are important to you? Make a list. Do family vacations mean the world to you? Do you really want a new Mercedes each year? Is having the latest Apple Inc. product important to you? Will a bigger house make you happier? There are some things I can’t live without, and I make selective decisions, because gaining and holding onto wealth just may mean, “you can’t have everything.”
– Always seek new ways to earn more cash.
Why do many frugal people end up rich? It’s not so much that they “spend wisely,” but they keep finding new ways to earn money. My advice to gain riches, especially if you’re just starting out, is that you get a job, get a better job, get a second job, and keep finding ways to earn. When I was working part-time and going to college, I worked with a guy who was fifty-two years old, who had a decent full-time day job. It didn’t make sense to me back then why he would work so hard all day, then need to work a few nights and one full day on the weekend. He didn’t need the money. He was extremely frugal, in fact, I’ll say it, “cheap.” So what was his deal? He always said he wanted a good retirement and a better place to live. Well, he accomplished both. I’ve been to his house, and he’s doing quite well. He loves where he lives now, and all his hard work has made him a much happier man. By working that much harder, he’s earned his “bigger piece of the pie,” that he wouldn’t otherwise have.
– It’s a lifestyle.
So, you think getting rich isn’t a lifestyle? Well, it is(smiles). If you have any intention of making it big, you need to start living a whole new way. You’ll need to focus on earning as much as you can, and live in ways to keep it. I came from a family that didn’t have much while I was growing up, so there’s no way I ever want to go back to that. When I embarked on my career, and was getting the taste of success, I was careless, stupid, and foolish with my money. Thankfully, I had earning potential, and I was able to recover from my mistakes, and start out fresh again. Sometimes we need to learn the hard way, but that’s how we learn. I’m actually grateful that I made those mistakes at a young age, because I was able to get on the road to building what I wanted out of my life. For some, there may be an endless cash flow, that makes spending not an issue for them, but not many have that. If you’re building wealth the hard way, make all the things that’ll help you earn and hold onto your money a lifestyle.
There’s no easier way to earn money, unless you inherit it or win the lottery. Either way, money doesn’t always last forever. We can earn it, but we need to be smart enough to hold onto it, and/or continue to create it. Once you make a few changes, and they become habit, you’ll start to see your savings grow. It may take some time to accumulate the wealth you want, but through smart decision making, you’ll be getting closer to it.