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8 frugal habits that will help you make millions, well pesos that is :)

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Lee2:
None of us really need to invest to get ahead, I have lived my whole life following #1,3,6 and 8, take it from me that it works to get ahead, I do not know about becoming a millionaire unless they are referring to pesos.  ;)

--- Quote ---http://www.aol.com/article/2016/03/10/8-frugal-habits-that-will-help-you-make-millions/21325854/
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.

1. 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!

2. 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."

3. 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.

4. 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.

5. 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."

6. 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.

7. 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.

8. 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!
--- End quote ---

Splooge Magoo:
I've done pretty well for my family so I will expand and/or add to it a bit:

1. Save, save save. While working, have money deducted each pay cycle to an investment account. When it gets to $500 or $1000, buy low cost index funds (VTI for me). When the stock market dips like we have had in the past year, live like a dog and invest more.

2. Every raise, put and additional 1/2 in your 401K.

3. Your car should last a least 10 years. After the loan is paid off, invest the payment in (1). The next car, same thing and you can find recurring bills to cut that worked its way up to help with the new payment.

4. Everything you buy should be high quality. Stop buying cheap every few years. Buy quality once and it will save money over time.

5. Call your cable company up today and ask for the cancellation department. They will lower your rate with a promotional offer. Do this each year. Take the savings and increase (1).

6. Round up your mortgage, car payment or any long term loan. The interest savings adds up real quick.

7. Volunteer for all of the crappy jobs at work. Supervisors will remember this come review time you should be taken care of, plus you will never be out of work as there are always crappy jobs that no once else wants to do. If things go bad at work, you will be one of the last ones let go.

8. Quit drinking, smoking and/or drugs - Its expensive and leads to bad decisions. Take that money and use it for (1).

9. Order take out instead of eating at the same restaurant. Saves on tips, overpriced drinks and impulse desserts.

Hestecrefter:
"One in 20 American adults are considered millionaires."

That statistic comes as a surprise.  The article quoted goes on to say: "Although having a bank account with a million dollars rarely happens overnight, it's achievable if you follow the eight frugal habits listed below."  That suggests that the author defines "millionaire" as someone with liquid assets of $1 million.

Even taking a more expansive approach, and defining a millionaire as someone with a net worth of $1 million, I find the 1 in 20 statistic startling.  Most young adults have not had time to accumulate $1 million, which suggests that a very high percentage of older adults are millionaires.  It makes me wonder about all the articles one keeps encountering on the web about Americans not being financially prepared for retirement. 

As for the observations of Master Splooge, I find myself overall in respectful agreement, save for items # 3 and 8.  In the case of #3, I would say borrow only for a house.  Even then, make a down payment of at least 35%.  Motor vehicles should be cash purchases. 

As for #8, smoking and drugs...never start, then you won't have to quit.  As for drinking, I say quit if you have no self control and regularly drink to excess.  Me, I refuse to give up my couple of glasses of red wine with dinner.  Expensive, yes.  I buy good wine.  Because I am otherwise prudent with my money, I can well afford the good stuff.  However, I reject the notion my wine drinking has led to "bad decisions". 

I am reinforced in my view on the topic of alcohol by medical advice I received circa 1987.  My family physician - who went on to be recognized as a leader in the profession - saw the effect on me of working in a downtown professional office and lunches out everyday, etc.  He suggested I lose some weight.  He said many find that hard to do, so I should try losing 5 lb., at least to start.  I thought, I'll show him.  I lost 40 lb.  When I next saw him he was amazed and also suggested I had perhaps gone too far.  He asked how I did it.  I mentioned part of the new regime involved cutting out wine with meals.  His response?  He said "I don't like to hear that.  I am one of those who believes that moderate alcohol consumption has health benefits that outweigh the risks."  Truth be told, I had never intended the elimination of wine from my diet to be permanent. 

Maybe that dr. was right about the health benefits.  I have not been in a doctor's office for about 20 years.  Already, I have watched many die younger than I.  Many my age (and younger) around me seem to have endless medical appointments, club bags full of prescription medications; they are having knee and hip replacements, getting dentures, complain of aches and pains, make a big deal of it if they have to carry 50 pounds 100 yards or walk a mile or two.  For them, if they have taken Splooge's advice to heart and have salted away millions, they are in no physical shape to enjoy it. 

As for the original list in Lee's post, a couple of observations:

Item #4. "Rent or sell your current possessions."  Rent what?  Your living room furniture?  Your computer?  Your lawnmower?  Apart from real estate, the only thing the average person might own that has any rent value would be motor vehicles, boats, etc.  Getting into that game can be fraught with difficulty and risks.  I agree with selling anything no longer required, provided it is fit for sale, there is a market and one can effect a sale without putting too much energy into it.  I make the latter comment because it would be better to give the item away and use the time to earn or invest money than to spend a lot of time to sell an item for 20 bucks.

Item #5. "Leave the cash and plastic at home."  I would say learn self-discipline instead, which should have been acquired by about age 12.  The idea that anyone would need to leave cash and plastic at home as a measure to control spending is just plain sad.

Item #8. "Get a side gig."  The best advice here!  Especially if you work for someone else.  Many employers, including governments, are anti-moonlighting.  Why?  Because it keeps employees subjugated.  The employee is at the employer's mercy.  Having a second job/income source means you can tell the employer to shove it, should need arise.  It can be a safety net when one finds oneself getting punted after years of good service.  These days, being a good, productive worker is no guarantee of longevity on the job.  The "side gig" should be something that provides a good income and can be developed into a "main gig" as necessary.

Splooge Magoo:

--- Quote from: Hestecrefter on March 15, 2016, 03:48:41 AM ---"One in 20 American adults are considered millionaires."

As for #8, smoking and drugs...never start, then you won't have to quit.  As for drinking, I say quit if you have no self control and regularly drink to excess.  Me, I refuse to give up my couple of glasses of red wine with dinner.  Expensive, yes.  I buy good wine.  Because I am otherwise prudent with my money, I can well afford the good stuff.  However, I reject the notion my wine drinking has led to "bad decisions". 


--- End quote ---

Hestercrefter - your right, it should be more generalized to fall in vices that are problems or addictive.

Splooge Magoo:

--- Quote from: Hestecrefter on March 15, 2016, 03:48:41 AM ---"One in 20 American adults are considered millionaires."


Item #8. "Get a side gig."  The best advice here!  Especially if you work for someone else.  Many employers, including governments, are anti-moonlighting.  Why?  Because it keeps employees subjugated.  The employee is at the employer's mercy.  Having a second job/income source means you can tell the employer to shove it, should need arise.  It can be a safety net when one finds oneself getting punted after years of good service.  These days, being a good, productive worker is no guarantee of longevity on the job.  The "side gig" should be something that provides a good income and can be developed into a "main gig" as necessary.

--- End quote ---

This is really subjective - I worked for 15 years for a company the rewarded hard work. A side job would have cut into the real job. I worked with a guy at the same place and he delivered newpapers in the morning before work. You would find him sleeping at his desk. He was warned not to let a $15,000 job endanger a $75,000 job but he never listened and got the boot.

At a different place, I really should have had a second job because the first job had the executives keeping all of increases to themselves. I quit with out a fallback and it took me years to recover.

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