Several self-made millionaires have shared their secrets of how they manage their money in order to grow and preserve their wealth. Frugality is a key theme among these individuals, with many of them making intentional decisions about where to spend their money. For example, Jonathan Sanchez, the founder of Parent Portfolio, keeps a low clothing budget by choosing simple, timeless clothes and only buying new items when necessary to replace worn-out pieces. This approach helps him avoid the allure of fast fashion and disposable trends.
Another self-made millionaire, Steve Adcock, avoids spending money on extended warranties for household appliances and electronics from big-box stores. He believes that these warranties are often unnecessary and simply add to the store’s profit margin. Instead, Adcock saves a little money each month in his emergency fund to cover potential repairs, allowing him to skip the extended warranty costs. This strategic approach to spending helps him build and maintain his wealth over time.
CNBC’s Jim Cramer, who was raised by frugal parents, takes a thrifty approach to expensive alcohol purchases. He sees spending $500 on a bottle of wine as a waste of money when that amount could buy multiple high-quality cashmere sweaters instead. Cramer’s perspective reflects his belief that it’s important to prioritize spending on items with lasting value rather than indulging in fleeting pleasures.
Bernadette Joy, the founder of Crush Your Money Goals, chooses not to spend money on expensive athleisure workout clothes. Instead, she opts to wear free T-shirts from conferences and events to her fitness classes, saving money without compromising on her workout routine. Joy’s practical approach demonstrates that it’s possible to maintain a healthy lifestyle without breaking the bank on expensive activewear.
Millionaire Todd Baldwin takes a unique approach to social outings with friends by turning them into income-generating opportunities. As a “secret shopper,” Baldwin gets paid to provide feedback on dining experiences, grocery shopping trips, movies, and even hotel stays. By waiting to attend social activities until he can do a mystery shop, Baldwin is able to enjoy nights out with friends without spending money, effectively turning his leisure time into a source of additional income.
Overall, the stories of these self-made millionaires highlight the importance of being intentional and strategic with spending in order to build and preserve wealth. By prioritizing value, frugality, and financial independence, these individuals have been able to achieve success and security in their financial lives. Their insights serve as valuable lessons for anyone looking to improve their financial habits and make the most of their money.
