Here are 4 lessons to help you get ahead financially. It’s advice from some of the most successful people alive today – compiled by frugal-living expert Kyle James:
- Don’t buy a luxury car. On average, new cars lose 30-percent of their value in the first year. Maybe that’s why so many millionaires – including billionaire Facebook founder Mark Zuckerberg - drive modest, entry-level sedans. Mark Zuckerberg drives an Acura.
- This financial tip comes from Warren Buffett: Don’t buy too much house. Buffett still lives in the home he bought in 1958 for $30-thousand dollars. So buy a modest and comfortable home and use the money you save to build your savings and retirement fund. How do you know what you can afford? Multiply your monthly income by .3, or three tenths. For example, if your monthly income before taxes is $5,000, multiply that by .3. You can afford mortgage payments of $1500 per month. Remember, you’ll need extra money for taxes and maintenance. So don’t buy more house than you can comfortably afford.
- The next financial lesson is from oil mogul T. Boone Pickens: Skip the bling. According to Bankrate.com, 86-percent of the people who buy luxury items, like super-expensive jewelry and high-end cameras, aren’t millionaires, they’re regular people trying to look like millionaires. If you run into Pickens when he’s out shopping, it would probably be at the grocery store - where he still uses a list and only carries enough cash to pay for what he intends to purchase.
- Finally, even if you’re doing well, remember that every penny counts. After getting a raise, a lot of people increase their lifestyle to match instead of putting that raise in the bank. But even actress Hilary Swank still clips coupons and First Lady Michelle Obama shops at Target. Even if you don’t need to save 50 cents a day, doing it will add up to more than $13,000by the time you retire.