Have you ever looked through the Forbes list of the top 100 richest people in the world? You may have wondered how they got so rich and also if they ever thought of living in a thrifty fashion. It might surprise you to know that some the world’s billionaires are indeed quite pound conscious and find a number of money saving ways to save their cash.
Here are some of their tactics.
- A simple home: Home sweet home is even sweeter when you keep it simple. An example of this is Warren Buffet. He has lived in his 5 bedroom home since 1957. It is big enough for him to move around and house his family, but small enough for him not to have to pay huge utility bills and taxes. A simple lifestyle is very relaxing and allows Warren Buffet to enjoy his leisure time without worrying about security.
- Public transportation or bicycle: now here is a surprise. Some billionaires go around in plush chauffer driven cars or even helicopters. The frugal billionaire takes public transport, walks or even cycles to his destination. John Caudwell and David Cheriton are examples of these thrifty people.
- Buying clothes from the rack: not all billionaires dress in designer suits; some love the casual style and can be seen in blue jeans and T-shirts. They take pleasure in buying their clothes from the rack instead of having them custom made. Why dress in starchy suits when you can be more comfortable in casual off the rack wear? After all if you are a billionaire you do not have to impress anyone.
- Haircuts can be expensive: the cost of a good haircut with styling can be quite expensive some people can even spend up to 300 pounds on a single haircut, but not the frugal billionaires. They prefer to cut their hair at home. Just imagine the amount of money they save! It works out to be quite a bit if you look at the amount of money they might have spent during a whole year.
- Luxury toys: while many rich people parade around in lavish cars, planes and boats the frugal billionaire knows better. To quote Warren Buffet “Most toys are just a pain in the neck” and you have to admit that he is not wrong. The less you spend on these luxuries the less money you waste. After all why waste money when you can use it for something useful and worthwhile.
If you want to find a list of the top richest people in the world then look no further than Forbes list 100. Here you will even find pictures of the world’s 20 richest billionaires in the world. Featured as the world’s richest man in the world is one of our frugal billionaires Carl Slim Helu, he lives in a modest house and is known for his frugal way of living.
Many of the world’s most frugal billionaires came from the ranks. They were not born to wealth and they have not forgotten their roots. They are in fact self made people. Although many of the names you see are men there are also women as well Oprah is a famous billionaire and although she does dress quite lavishly she does not forget about the common man or woman. This is the essence of what a frugal billionaire is all about.
Their frugal habits may not have made them wealthy. However it does ensure that they have the ability not to waste money but spend it in the right places. Perhaps they could not have done so well if they had squandered the money they were making rather than investing it wisely.
Sometimes one of the best ways to save your money is to invest in future money saving deals. There are several ways to do this but not all investments will give you the best return on your investment. Here are seven investments that really make pound sense.
- One of the best investments you can do, to get the best returns is to open an ISA account. What does this mean? An ISA account is an individual savings account. Normally interest from a savings account is taxed either 10% or 40%, depending on your income. An ISA is a tax free saving account. There are two sorts of ISA accounts. One is when you just invest capital in the form of cash. The other is when you invest in stocks and shares.
However there is a restriction on the account in that you cannot invest more than 10,200 pounds into an ISA, over a tax year. This can be spread between the two accounts or solely invested into stocks and shares. You cannot put more than £5,100 in the cash account within a year. However you can put the complete £10,200 into the stocks and shares account. You will get maximum return on your investment because these accounts are tax free.
- Gold investments: There is a fair amount of fraud and dishonesty in this market as it has become very popular. However if you handle your investment wisely, buying and selling at the right time you can get a great return on gold. You need to know what you are doing and have trustworthy people working with you.
- Forex: if you are prepared to learn about this market and again watch out for frauds you can do very well. This is when you invest in a currency and then sell when it appreciates. Unlike stocks and shares you do not have to invest very much but can gradually increase your investment as you get to know the ropes. You must know what software is best and be aware of the buying and selling trends.
- Antiques: If you know how to handle auctions you can make quite a few pounds by buying antiques and collectables at auctions and selling them off at a good price. Now you have to be savvy and know exactly what you are getting, but if this field fascinates you then this could be an investment that brings you a good return. You also buy items at garage sales and flea markets, at real bargain prices. You can then clean them up and sell them for a good price.
- Cars: again you need some expertise to do this. You can buy cars at auctions relatively cheaply, if you are savvy. You then make sure they are in tip top shape and sell them for a profit.
- Real Estate: the real estate market is at an all time low right now. This means that you can get houses at rock bottom prices. Of course it will take a while for the market to rise again but while you are waiting you can rent out your property and get back your money. Once the price of the home rises you can then get back a good return.
- Land: farmland in the UK has risen over 30% in 12 months. This investment will not give you instant returns, but will give you a solid return for your investment if you are patient. You can also rent the property; again this will allow you to get solid income from your investment.
A shrinking budget does not necessarily mean your entertaining days are over. In this financial climate, low-budget party ideas are even more valuable and helpful for hosts or hostesses in need of top entertainment at a low cost. Most of us can no longer justify nor afford top-of-the-line parties costing more pounds than are monthly groceries—it is just not realistic for the average person. Here are 5 ways to entertain guests with no cost out of your pocket.
1: Bring Your Own Beverages
Getting together with family and friends is commonly around food. That’s just how it is today. Eating and drinking has become a social thing; but, that does not mean the host or hostess must supply the food and drink every time. When sending out your invitations, include a small note at the bottom requesting your guest bring their own beverage of choice. This puts the cost in their lap letting them spend what they can afford. If they want to drink water, you probably have that covered—set out some nice glasses, freeze some water for ice and put some good o’le fashion tap water in a pitcher. No one will care come party time. They will be too busy chatting with others and socializing. For those wanting a stronger beverage, allowing them to bring their own also ensures that they can enjoy their favourite all night long. You might suggest checking out some online wine shops that offer discount codes, like From VineyardsDirect, Giordano Wines and Majestic wine—and plenty others under the Wine & Champagne category.
2: Let’s Share a Dish
Similar to the tip above, there is nothing wrong with making your event more of a “potluck” style. If you do not like the sound of “potluck,” then simply note in the invite a request for each guest to bring a dish to share. As the hosting party, it would not be a bad idea to connect with guests that RSVP yes to coordinate the dishes so that you do not end up with 5 dishes of mac ‘n cheese but no main dish. You will find, though, that most guests are willing and prepared to help out with the event. When they ask what they can do, take them up on the offer and ask them to bring something. If it is a less formal event, there is no harm in asking your neighbour to bring the buns or a couple bags of chips. It all adds up with the important part being that it does not all come out of your budget.
3: Use Your Own Music
A DJ or band is not a pre-requisite to a fantastic party. Although nice, you can enjoy the sounds of music in the background without this hefty cost. Pick out a few of your favourite CDs and play them with a CD player, or simply have the radio playing throughout the party. Another increasingly popular choice among hosts is to use your laptop to create a Playlist with an online music library. This DIY entertainment gives the effect of a DJ’s specially selected music but without the cost. This style of party entertainment is also fun for guests who want to review the Playlist and pick out some of their favourite tunes to hear.
4: Create Your Own Invitations – Offline or Online
Invites can easily be created with your own computer using word processing or publishing software. You can also order invites online taking advantage of online discounts from card shops like Hallmark and VistaPrint, among many others that can be found in the Greeting Cards category.
To avoid the cost of stamps, you could also use websites to send invites via email from which guests can RSVP directly. These are great ways to monitor your guest list and coordinate dishes since you can easily communicate with those attending throughout the invite website or direct email. There are many design options available; so cute and classy invites certainly does not need to go to the wayside when entertaining on a budget.
5: Decorating with Less
Finally, we cannot discuss entertaining without talking about the decorating. When decorating on a budget, aim for less. In fact, any party should heed to the “less is more” concept as too many flowers and streamers can sometimes lean toward tacky. This is especially true if your party is at your home. Use what you have, if anything, and just keep it simple.
The recent blog “Celebrate New Year’s in Style but Frugally” offers some additional tips on entertaining on a budget, tips which can be used for New Year celebrations and anytime of the year.