5 Rich People Rules for Saving Money

published Dec 18, 2019
2 min read

Gold Piggy Bank

There are some people in this world that seem to get rich by accident. They have huge amounts of money left to them by a member of family in a will, or they’re born into cash from day one. There are even a lucky few out there who win their way to the top.

However, a significant portion of the rich people that we look up to and admire in the world today got to where they are by starting off just like you. These people didn’t get rich overnight, they pursued their dreams, and made sure that they had a good financial strategy for managing their money at the same time. Fortunately, you can use the same tips that rich people use to transform your life.

1. Use the 24-Hour Rule

When we see something in person or online that we really want, it’s really difficult for us to say no to it. For instance, you might have seen a fantastic new car that you know will save you a ton of money on petrol in the long term. You can afford the repayments, but you’re not sure if you should be taking out a loan or not yet. The best thing you can do at this point in time, is give yourself 24 hours. Sleep on the decision and think about what to do next.

It doesn’t even need to be a huge purchase for you to use this rule. Whenever you’re going to buy something that costs more than £40, tell yourself to sleep on it. This will make it easier to avoid impulse buys and bad decisions.

2. Stick with Cash

Carrying cash has become a bit of an old-fashioned practice these days. We’re so used to paying for things contactless using our cards, or just flashing our phones when we want to buy something. However, cashless economies aren’t particularly good for your financial standing. When you use cards for too long, you start to lose track of how much you’re actually spending.

Working with cash only forces you to keep track of every penny and where it goes, so you’re less likely to spend without thinking. You can always keep your cards for paying for things like your rent or your mortgage and use cash for food or entertainment.

3. Spend on Things that Have Long-Term Value

Sometimes you do need to spend money to make money. The rich splurge on things that they know are going to pay off later. For instance, if you know that buying a new computer so that you can do courses in your free time and potentially get a better job will make you money in the future, then do it. On the other hand, buying some extra beer when you go to the store is unlikely to help you get anywhere in life.

Every time you’re making an extra purchase, ask yourself what it’s going to do for you, no just right now, but in the long term. Allow yourself to make purchases that are good for you.

4. Learn How to be More Self-Sufficient

If you’re the kind of person who is always spending money on getting help with things, then it might be time to learn some new skills. For instance, instead of spending cash on a handyman who can come and fix your fridge for you, learn how to figure it out for yourself by watching videos on YouTube and reading the manual.

These days, there are a lot of things that you can learn how to do quickly online, without having to be a rocket scientist. Becoming more self sufficient will mean that you don’t have to spend as much on service charges. At the same time, it will also give you more confidence in your life too. The right skills can even be passed down to your children to help them be more independent as they get older too.

5. Make a Shopping List for Annual Sales

Last but not least, if you really want to take advantage of an upcoming sale, then make sure that you plan for it. Sales can be a great time to spend some money – but not if you’re just buying things that you don’t need for a discount. Instead, plan when sales are going to arrive for your favourite companies and write a list of the items that you’d like to buy.

Once the time comes to go shopping, buy only what you’ve previously planned and nothing else. Don’t let the discounts get the better of you.