Rhett Power on Inc. put together some of the best financial practice that regular folks can follow to walk a little bit more in the footsteps of the world's very richest people. Caution: these are not self-help fad but are, rather, incredibly inviting practical and sensible tips.
#1 Avoid debt at all cost
Contrary to marketing spiels, debts are not a necessary evil. Credit cards and loans are not free rides to spending sprees, but are interests and fees waiting to pile up - and pile up they often will.
#2 Understand that happiness is possible with less
Materialism is a trap. Eluding this trap time and again can actually add up to much. Google co-founder Sergey Brin, for example, says: "I was raised being happy with not so much." Today, this exemplary entrepreneur has a cool $22.8 billion to his name partly by refusing to get bogged down by the ploys of materialism.
#3 Don't just live within your means, live below it
Ostentatiousness is a pricey vice that constantly assures the destruction of many. Always self-reflect upon the reason for each purchase and each spend and determine if these reasons are valid, are genuine, and are not a placebo for root issues that need to be faced squarely.
#4 Spend wisely on coffee
Coffee drinking has become a social exercise for many. However, daily commercial - especially branded - cups of coffee eventually add up to a considerable total in a given month. Home brew and drinking coffee only when essential are good measures to streamline this hobby.
#5 Fly smart, fly economy
A good exercise is to use air travel as an opportunity to collect miles and earn free tickets. This is even better if flying does not create a whole in your financial statements. Avoid expensive air fares where you can and realise that people like Ingvar Kamprad of Ikea fly economy, too
#6 Live in a modest home
One such example who exercises this principle is the chairman and CEO of Telmex, Carlos Slim Helu, whose home is a six-bedroom house that he has been living in for over 30 years now.
#7 Understand the wisdom in buying from sales
Dress well without getting whipped around by the manic year-round changing of styles. The combination of branded merchandise and outlet stores ensure smart buys while staying in fashion.
#8 Apply selective spending
Plan all purchases and resist impulse purchases. The occasional treat is okay without going broke.
#9 Avoid being a one-man car show
Jim C. Walton, Azim Premji, Steve Balmer, and Ingvar Kamprad all use cars that cost less than $20,000. In Rhett Power's words: "Drive the same car for 10 years."
