If anyone should be handing out money advice it’s self-made millionaires (and billionaires.) Creating a life of great wealth means that they clearly have something figured out. Here are some financial tips from millionaires who have managed to make fortunes and hold onto their hard earned money.
Have Multiple Incomes
Jay Leno is incredibly successful in the entertainment industry. Part of his success is due to having multiple sources of incomes, and then only spending from one of them. “I’d bank one and I’d spend one.” He always spent the smaller of the two. He has continued to live off his income from doing stand-up comedy and has never touched any of the money that he made hosting The Tonight Show.
Start Saving ASAP
It makes sense that the sooner you can start making and saving money, the better off you’ll be financially. This is the advice of Mexican businessman Carlos Slim Helú. He started buying bank shares at the age of 12 and worked for his father from a young age. For a few years, he held the title of richest man in the world. It’s too late for most of us to turn around our childhood money habits. But it’s never too late to start now.
Live Well Within Your Means
There are many stories of people making lots of money only to lose it once again. Generally, this has to do with the fact that they’re living outside of their means. This is an important concept no matter how much money you’re making. Warren Buffet became a billionaire investing in smart ways. But he reportedly still lives in the house that he purchased in 1957 for $31,500. He’s worth an estimated $68 billion, he could clearly afford to upgrade. But he hasn’t felt the need to, so he hasn’t.
Separate Needs from Wants
It’s okay to spend some money on wants, since life, after all, should be enjoyed. But it’s a good idea to keep track of which is which just so you have an idea about how much money you actually need to be spending. A good example of this is choosing a car. Safety and efficiency should be the top priorities, and yet many people treat them as status symbols. But not everyone. Ingvar Kamprad of Ikea wealth drives an old Volvo, while Walmart billionaire Jim Walton drives an old pickup truck. Those both happen to be stores that sell consumer goods at lower than average prices. Those people obviously stand behind the concept of their stores in their own life as well.
Do What You Love
It certainly helps to feel motivated in life, and some of that motivation can simply come from following your passions. Millionaire Christopher Paul Gardner was a homeless single father and ultimately turned his life around in a major way. He has said: “Here’s the secret to success: find something you love to do so much, you can’t wait for the sun to rise to do it all over again.”