In this post we will talk about how to become a frugal millionaire. Some of the links in this post are affiliate links. This means if you click on the link and purchase the item, I will receive an affiliate commission at no extra cost to you.
Do you want to become a millionaire quickly and easily? Of course you do!
Today, the quest of money-making is more about gaining financial freedom than hoarding bundles of dollars aimlessly. The mission of becoming a millionaire accompanies two more side quests in the form of maintaining frugality and growing financially independent.
You’ll find tons of people rallying around to gain the optimal balance between earning money and spending it so that they never run out of money their entire life.
Yes, money making is important.
But what’s more important is learning how to stay frugal as a millionaire. Why? Because money is a resource and like every other resource in your life you will eventually run out of it if you don’t master the game.
The next big question is how do you become a frugal millionaire? This article covers the top 10 secrets you must know to hone this skill (and you probably never heard of them before!)
Keep reading!
How to Become a Frugal Millionaire
1. Start Living Humbly
Contrary to the widespread belief that millionaires spend thousands of dollars every day, it is not actually the case. In fact, most frugal millionaires live below their means.
Take Mark Zuckerberg, for example, the CEO of Facebook. This guy owns a fortune but you’ll find him wearing the same T-shirt in most of his media appearances.
Whether you live in a multi-story villa or a small apartment, both of these places will serve the primary function of providing you with a roof over your head.
Similarly, you can drive just as well in a Toyota Corolla as you can in a BMW. You can also switch to frugal living options like portable car vacuum cleaners rather than hiring people to do chores for you.
When it comes to becoming a frugal millionaire, your focus should be more upon fulfilling everyday needs rather than price tags.
Once you start to live below your means, you can ultimately attain the desired traction to save more than you are spending. As you achieve this threshold, it will be easier to live under the relief of financial independence as your lifestyle will continue to align with your goals.
You can read the success stories of Mark Zuckerberg or Bill Gates in eBooks to become acquainted with the importance of a frugal lifestyle.
2. Simplicity is key
Did you know that 86% of the people who splurge money on expensive automobiles and a luxurious lifestyle are not even close to being rich in the true sense? These folks only want to look like they’re rich.
Frugal millionaires are humble and live simple lives. They don’t flash expensive accessories and drive around in fancy vehicles. After all, your net worth is determined by who you are, not what you look like you are.
Frugal millionaires are big on saving. Be it business matters or personal matters, frugal millionaires always look for ways to save money and cut down the costs.
You will hardly see a millionaire shopping at expensive stores like Tiffany. Instead, you will find them excitedly checking out with an item or two at their local Tesco or Walmart. They like to organize their coupons in small purses just like you and me.
You can always take a frugal route and save as much as you can today to earn more and ultimately save more in the long run.
3. Avoid These Shortcuts
Today, the money-making shortcuts and tips are rampant. Scams are crawling internet like a plague, and tons of poor folks fall prey to these malicious tactics every day.
In most cases scammers completely rip you off of all savings in your bank account.
Keep in mind a single hard and fast rule: THERE IS NO SHORTCUT TO BECOMING A MILLIONAIRE unless you win a lottery (which is rare and only temporary).
Thus, the only option you are left with is to work smart and hard to earn money as well as to save it wisely to gain financial freedom. Instead of taking shortcut schemes of doubling money or investing without giving the proposal any thought at all, focus on promising ways to earn and save money.
4. Stick to a Budget
Maintaining a budget is there on every frugal millionaire’s list.
Humans LOVE to spend more and more when it comes to money and budget is a resistor which halts the flow of uncontrolled spending in a broke guy’s or millionaire’s life.
You would be surprised to learn that more than 70% of the world’s millionaires tend to go really big on creating and following a budget so much so that they hire skilled budget makers and accountants to look after their cash flow and devise proper budget plans to follow.
One of the most surprising stories in this case is that of Johnny Depp. His habit of spending led him to the brink of brokenness at one point in his life. If you are wondering just why such a famous and rich actor went broke, you should know that it’s simply because he couldn’t make a budget – and stick to one.
If your quest is to gain financial freedom, whether you are broke or in possession of millions, religiously sticking to a budget planner will help you tremendously.
5. Create Multiple Revenue Streams
People like you and I often tend to overlook the vitality of side-gigs in gaining the status of a frugal millionaire. When Mark Zuckerberg invented Facebook as a student, no one he had imagined would soon go on to own social media giants like Instagram and WhatsApp.
Same goes for the famous, multi-millionaire online fashion models and beauty influencers like Kylie Jenner and Huda Kattan – both of whom launched their cosmetic lines shortly after bagging lump sums of cash and fame from online platforms.
Side Gigs are the extra lifeboats one must always keep on the Titanic ship of life. These secondary streams of revenue will not only help you in times of desperate need but also help in compensating for any financial losses which your core business model may ever face.
If you want to become a frugal millionaire who enjoys a sense of financial independence and security, side gigs are the way to go.
Apart from launching side gigs, you can also create secondary revenue streams by investing in new startups, stocks, and any other promising platforms. It’s worth it.
6. Save Money Strategically
What does strategic money-saving imply?
Well, the answer lies in money-saving hacks, which can be easily found online. One example of strategic money-saving is to invest in power-saving LEDs, which tend to offer more than 70% cut on your electricity bills as compared to ordinary lighting.
Similarly, you should invest in cheaper, durable, and long-lasting stuff rather than hoarding expensive stuff inside your home. Once you start following money-saving strategies, it becomes easier to de-clutter your home and become a frugal millionaire quickly.
7. Make saving fun
Earning is difficult; spending is easy, and saving is just the buzzkill we do not want to have in cool parties. This statement applies to most of us who do not want to save and yet dream of becoming millionaires.
You will be surprised to know that the big names in the industries love to save and make it fun in as many ways as possible.
How can you make saving fun, you ask?
Well, it’s easy. Grab that coupon offered by your favorite store on seasonal holidays or special occasions. Moreover, use money-saving envelopes.
Another way to make saving fun is to partner with like-minded people and track each other’s progress so you can keep each other motivated in your quest of gaining financial freedom.
Gratitude is the millionaire’s attitude
You may think that mentioning gratitude in an article talking about becoming a frugal millionaire is irrelevant, but it is way more than just a cliché.
Remember the time when your elders lectured you on being grateful for what you had so you can appreciate the little things in life?
Well, that old-school advice is more relevant today than it has ever been. In a world where new deals, sales and expensive brands are making you lost control over your earnings, being grateful serves as an antidote.
When you’re grateful for everything that you already have you experience less desire to buy more and own more.
Record in a journal what you are thankful for. If you’re going to be a millionaire, you may want to start with being grateful for what you already have.
Limit your Access to Cash at Hand
Another big secret of becoming a frugal millionaire is to limit your cash intentionally. One of the great ways to control your spending is to keep a single credit/card with tapped spending limits rather than maintaining multiple cards.
Similarly, you can open joint accounts or savings accounts with withdrawal and spending limits so your cash can remain reserved.
Another way to limit your access to cash is to invest it in stocks, property, gold, bitcoins, or any startup. You can also keep money in safes and piggy banks.
Track your progress
Saving money is not something that only the poor do.
The whole process of integrating frugality with becoming a millionaire is exceptionally challenging. To keep on track, you will have to monitor your progress.
If you want to track progress on a personal level, you can order budget planners and yearly financial monitoring report drafts from Amazon.com.
These tools can not only help you in becoming in charge of your spending but also help you in recording your progress so that always know when to get back on track when the desire to spend unnecessarily overcomes you.
Bonus Secret: Spend on Others
Those who have a lot like to spend on others as much as they can. In fact, when you keep circulating money in your community it eventually multiplies and comes back to you in a higher amount than you gave away initially.
Giving away money is a sure way to reflect your humility, give back to the world, and eventually get the rewards multiplied.
But everything comes at a cost.
Once you become a millionaire who’s big on frugality, people start to think of you as a selfish rich person. However, remember that one of the qualities of frugal millionaires is that impressing people is the last thing on their list.
Once you have attained financial freedom, it is your societal obligation to give back to the people who helped you become who you are directly or indirectly.
Community service, philanthropist donations, and financially helping others not only help society but allow you to live fulfilling life.
Apart from making donations, you can also offer occasional bonuses to your favorite employees. Try to sort your savings into three parts and reserve the last part to be given away to the needy community members. You can give away gift cards as well.
Remember what you give today will directly or indirectly come back to you in the future.
The Bottom-line
Saving and tapped spending is the frugal millionaire’s way to live. Surround yourself with those who are on the same journey to financial independence and a frugal lifestyle. And remember not to compromise on relationships in your pursuit of becoming a frugal millionaire!
Hope you enjoyed this post on how to become a frugal millionaire, and let us know in the comments if you have feedback as well.
