We can’t all be millionaires by 30 (like this guy), but we can certainly use some of their financial advice. In the finance field, there will always be opposing opinions on the best ways to manage your money. But why not take tips from people who are successful at doing it?
According to a study from Spectrem Group’s Market Insights Report 2017, there are 10.8 million millionaires in the United States or about 3% of the population. Meanwhile, a good chunk of the population is facing some kind of debt, with the average credit card debt per U.S. household alone at over $6,600.
So, what can we learn from those who have managed to beat the odds? We tapped some of them to find out what they know about amassing a fortune. Here five millionaires (or those who manage millionaires’ funds) reveal their secret budgeting habits.
1. Buy used
Just because you have the money to spend, doesn’t mean you have to spend it on new and fancy things. That’s what Ilene Davis, millionaire and author of Wealthy by Choice: Choosing Your Way to a Wealthier Future, found when she went from earning a moderate income to becoming a high earner.
For example, Davis buys most of her clothing at thrift stores or consignment shops. She even entitled one chapter “Unfashionably Rich,” showing readers four pairs of jeans and asking the difference is among them. The answer: One pair cost $132, the other three combined around $12.
“I also only buy used cars and will opt to watch movies with friends at home instead of going to the theater,” she said. Those are just a few ways to live a thrifty lifestyle, but there are plenty of ultra-easy frugal tips to try.