Many of us can only imagine what it would be like to live the life of a billionaire. Many people only earn a minimum wage and barely have enough money to save for the future. This makes it easy to say that the rich and famous are simply lucky for attaining their status. But what many people fail to realize is the hard work that happens behind the scene.
Not all billionaires got their wealth the moment they are born. Many came from humble families but were able to make it to the top. Even if your goal is to simply live a comfortable and financially independent life in the future, we can all learn from the following personal finance secrets of the rich.
Jeff Bezos: Embrace Frugality
Jeff Bezos tops the ranking for 2021’s richest people in the world. Wonder what his secret to success is? That is to live a frugal life.
Bezos meant we should practice frugality with a positive mindset. Allow yourself to enjoy the greater things by inventing your way out of the box. For him, frugality can drive innovation.
Even after his company become extremely successful, he upgraded his Chevy Blazer not with a flashy vehicle, but with a Honda Accord. He did this because he believes that the key to being successful is to spend money on things he value. And since an economy car can still meet his travel needs, he went for a Honda car which enables him to drive to places he needs to be.
Mark Zuckerberg: Choose Mortgage
One would think that as billionaires, they can simply buy any house they want. They can choose a house, offer a higher amount if the owner is not selling, and pay in hard cash. This helps you negotiate the home price and avoid going through the complex process of getting a mortgage.
But did you know that most extremely rich people like Mark Zuckerberg have mortgages? One might think this is a waste of time considering he has the money to pay in cash. But in reality, the Facebook CEO has a point.
When you have a financial background as great as Zuckerberg, getting approved for a mortgage is easy. Making monthly payments instead of the full payment frees him of extra money he can put on other investments. This way, he can still own the house, pay his dues, and make more money in the process.
Making good mortgage decisions also enables you to improve your home and turn it into your dream house. You can use your extra cash to hire reliable home contractors to work on home improvement projects. Choose projects that can boost the value of your property and sell for a higher price when the time is right.
Elon Musk: You Are Responsible for Your Success
We know Elon Musk as a hardworking innovator/billionaire. But what many people did not know is how determined he can be. He continues to invest in himself and relies on himself to succeed. This is not to say that he does all the hard work for his company.
He received too many “no’s“ but he never let that stop him from chasing after what he wants. He actually never takes no for an answer, which helped him get to where he is nowadays. If he simply took all the no’s he received in the past, then we won’t be able to enjoy his incredible projects that are pushing innovation to its limits.
He went from expanding renewable energy to designing cars. Musk hopes to send civilians around the moon by the year 2023. He even plans on colonizing Mars in the long term.
Musk shows us that you are the only one responsible for your success. If you wish to succeed, don’t take no for an answer. Find ways to make your dream work, and if it fails, brainstorm another great idea and work hard to achieve this.
Warren Buffet: Only Use Your Credit Card for What You Can Afford
These days, one can’t live without a credit card. It is essential in building your credit score. But if you are not careful, you will end up in more debt than you can chew.
This overused strategy is never easy to carry out. Imagine having to eliminate all your credit card debts each month. The secret is to only use your credit for what you can afford to pay in a month.
For instance, you can afford $500 additional debt each month. Don’t spend more than this amount on your card and pay it in full before the due date. This helps clear your monthly credit debts and still lives below your means.
It’s amazing how billionaires used these simple financial tricks to aid them in building wealth. This shows that sticking to simple but effective strategies can help you achieve your financial goals. You too can adopt these tips and start realizing your financial objectives.