With the introduction of currency, money has become a more critical part of our lifestyle. People with poor money management struggles a lot to enjoy a happy and prosperous lifestyle. Making sound financial habits part of your lifestyle is a big step towards prosperity. Today we are going to bring you the best tips from the Millionaires for saving money.

1. Follow the 50/30/20 rule.

Our first tip out of the 7 best tips on saving money is on budgeting. 50/30/20 rule is a budgeting technique where you split you monthly net revenue into three categories,

50% for Necessities (Rent expenses, utilities, groceries, etc.) 30% for personal spending (Entertainment, Outings, hobbies, etc.) 20% for savings (IRAs, Emergency Fund and other savings)

Grant Cardone, a self-made millionaire, says that it is essential to have some untouchable savings that you can’t even use it for an emergency. He invests his surplus income on debentures that he cant easily access.

2. Write out a detailed financial plan.

The preparation of budgets is not limited to business organizations or Governments. Each individual can prepare their budgets to plan their spendings based on their income.

You need to set specific goals for the coming year or months. Make sure that your goals are SMART (Specific, Measurable, Achievable, Realistic, and Timely). Once your SMART goals are in place, you need to prepare a detailed financial plan to achieve the goals.

For example, – If you are planning a trip to Europe. Your financial plan should include,

Your budgeted income and expenses for the coming months Costing for the journey (air tickets, accommodation costs, food and beverages costs, etc.) The portion that you hope to allocate to the trip Any additional revenue required to boost the savings Any expenses that you can sacrifice for the trip



You can also set long term financial goals like Saving for Retirement, buying a home, purchasing a new motor car, starting a business, etc. These long term goals are excellent motivators. Your daily routine should drive you to achieve your long term goals. If they are not supporting towards achieving your goals, you need to make changes to your daily routine.

Timothy Sykes, a Millionaire stock trader, states that such long term goals enable you to look beyond the moment and put into perspective why you’re spending your time today the way you are.

3. Start earning a passive income.

Most of the Millionaires don’t earn money by just spending time at work. Instead, they get their money to work for them. Therefore their time is more valuable than their money.

It is crucial to have another income source or a passive income. One of the ways to do is through investments. Warren Buffett recommends you to invest in something you are fully aware. If you aren’t an excellent financial guru, you can always consult an expert to identify the opportunities and risks of any potential investments.

With the development of technology, there are many ways to earn a secondary income from your home. Freelancing, content writing, blogging, & vlogging, online tutoring are some of the familiar secondary income sources that you can research and start working.

Earning a secondary income is one of the best tips on saving and most of the Millionaires recommend same.

4. Avoid “Poverty Thinking”

You must never say an item is too expensive, or you will never be able to afford that. Instead, you should see that high price tag as a potential limit that you can overcome. You should never think about it as a permanent barrier that you can’t overcome.

If all the goods and services are cheap and low priced, then there is no motivation for you to work harder. Always see money as something that you can earn and built up. Not something that put you down and crushes your dreams. It’s all in your mind.

5. Always have a plan B

Today you might be doing your dream job along with steady monthly revenue. But you have no idea about tomorrow. What if you lose your job, and you don’t have an income to cover up your expenses and to fulfil your family needs.

In such situations, you need to have an Emergency Fund, and you need to allocate a certain percentage of your monthly salary and save it in your emergency fund. Ideally, you should maintain a balance equivalent to 6 – 12 months’ income in your emergency fund.

Besides, you can identify your hidden skills like creative writing, blogging & vlogging, etc. and focus on developing them in your free time.

Also, you can expand your professional network & keep their contact details with you. Maintain active profiles in professional networks like LinkedIn & Xing, etc.

6. Stay away from Credit Cards.

Our next tip on the 7 best tips on saving money is related to proper debt management. Credit cards are issued by a bank, which allows the customers to purchase goods & services on credit. The bank evaluates your credit score, your income, and other financial obligations before issuing a credit card.

Owning a credit card means that you are trading on dangerous grounds. Credit cards encourage you to make impulse purchases, whether or not the transaction can be afforded. Spending on your credit card means that you are spending money which you don’t possess. You pay a monthly interest, which means you spend more money on the same item than if you pay using cash or a debit card.

The best way of avoiding such additional payments and impulse purchases, you can stay away from Credit Cards and try to make all the purchases using cash or debit cards.

7. Live below your means.

Today, we live in a society where people try to impress others by increasing their living standards. Therefore they spend more money than they earn, and it is one of the root causes of the majority of the financial issues. For example, a man buys a house in a prestigious neighborhood to keep up with the Jones and to impress their friends and relatives. Instead, he can buy a home where he can afford it and live a happy life with more cash in hand.

Grant Cardone, a self-made millionaire, was driving his Toyota Camry when he became a millionaire. He brought his first luxury branded watch and the car when his business ventures had constant and steady cashflows.

Living below your means doesn’t mean that you need to give up all the things that bring you joy. You need some creativity and reasons to justify it. For example, you don’t need to rush to purchase the latest Apple iPhone model when your mobile phone is properly working.

Do you have any other ideas or tips on saving money? Share your opinion in the comment section.

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