6 MONEY MISTAKES MILLIONAIRES LIKE WARREN BUFFETT AND BILL GATES NEVER, EVER MAKE—THAT AVERAGE PEOPLE DO ALL THE TIME

, Magazine

1. They don’t waste money on fees

Rich people know that fees are a waste of time (and money, of course), so the right course of action is to pay their bills on time. They’re also mindful of bank fees. Many banks will charge you extra money for their services, and you might not even be aware of it. Make it a habit to check your monthly statements for these hidden charges.

2. They don’t spend impulsively

We see millionaires drop a ton of cash on ridiculous things all the time (i.e. Cardi B’s $500,000 Lamborghini), but the smart ones are surprisingly frugal. Bill Gates wears a $10 watch. Warren Buffett eats the same thing for breakfast at McDonald’s every day — and it never costs more than $3.17. Mark Zuckerberg drives a manual transmission Volkswagen.

“Rich people don’t get rich by spending it all. They know better than anyone that by being careful shoppers they can achieve a lifestyle several rungs up the income ladder,” notes market researcher Pam Danziger. Impulse spending leads to waste, overspending and debt — three things successful people avoid

3. They don’t fall for marketing ploys

Marketing plots are everywhere, and rich people avoid falling for them by comparison shopping. They people appreciate value, but they also look at the big picture and always weigh the benefits of quality versus cost.

To adopt the same habit, do your research and consider your bottom line before making a purchase, big or small. By purchasing a more expensive but well-made item that you’ll use for years, you’ll save yourself the time and money of repairing or replacing a low-quality item.

4. They don’t try to beat the market

Billionaire and former Google CEO Eric Schmidt says that short-term trading (a.k.a. buying or selling stocks based on daily market movements) won’t make you rich. He always thinks long-term and never tries to beat the market.

Warren Buffett also insists on using the long-term strategy. A few days after he released Berkshire Hathaway’s annual letter to shareholders earlier this year, the billionaire appeared on television at CNBC and explained why longer-term investment strategies like index funds still stands the test of time.

5. They don’t have just one source of income

Having multiple streams of income will help you to generate more money, and rich people never rely on just one source of income. Consider turning your spare car into a ride-sharing business, taking on freelance work, becoming a tutor or writing about areas of expertise.

6. They don’t keep up with the Joneses

According to a 2017 report by employment website CareerBuilder, 78 percent of American workers live paycheck to paycheck. Wealthy people know the ideal of well-lived life is subjective. Buffett never owned an iPhone until he received one as a gift

Your friends, neighbors or co-workers might have the latest (and trendiest) tech gadget, but that doesn’t mean you need one for yourself. There’s a solid chance the Joneses can’t actually afford their lifestyle. Your personal reality is more important than public perception. Decide what you want your life to look like now — and in the future. Don’t let anyone else make that decision for you.

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