Billionaire Advice: 9 Smart Financial Tips

How can self-made billionaires like Warren Buffet make so much? What is it that they’re doing right or differently than others?

Well, a big part of it is that they manage money effectively and wisely. It takes discipline and patience to be able to grow wealth, and then actually keep it.

But there are also so many other pieces of billionaire advice that’ll help you out on your own financial journey of getting ahead.

And once you learn these spending tips from actual billionaires, and turn them into habits, you’ll be able to save so much more money than you ever thought possible. So read over this financial advice and wise words and see how things change in your life this year.

1. Save From the Top

Warren Buffet says that you can invest money only if you prioritize saving. And to do this, you need to start saving before spending.

If you save the money that’s leftover, you won’t have that much. So Buffet’s advice is to decide on a savings percentage before you start spending, and lay it aside.

Honestly, this is probably one of the simplest pieces of advice from billionaires on this list, but it has such a big impact on your life. Warren Buffet didn’t reach billionaire status by making money and then thinking about how he was going to spend it. He got there by saving intelligently, and then putting them into smart investments.

2. Save 6 Months Worth of Income

Ever wonder how to get rich and successful like the famous investor, Mark Cuban? Thinking ahead and having your back to the wall is his strategy.

Life is full of surprises, so it’s better to guarantee your future, and especially in terms of money. So for instance, you might want to quit your job in the near future, or you might get laid off, so try saving at least 6 months worth of income to survive until you find a new job.

That way all of your savings aren’t drained, and you have the comfort of looking for a well paying job without the stress.

3. Invest in a Reasonable Vehicle

Do you think Mark Zuckerberg, the founder of Facebook, drives a Ferrari every day? Well, he actually used to drive a Volkswagen Golf GTI to get things done.

So, get a reasonably priced vehicle that runs well, and use it for as long as you can. Because going into debt for a car is one of the worst things you can do for your financial goals.

There’s no need to get something that looks nice if it means you can’t get ahead.

4. Don’t Spend Your Money on Luxury Items

Would you believe me if I said Carlos Slim, one of the wealthiest people in the world, doesn’t have a yacht or a plane? Well, there are lots of millionaires and billionaires who prefer to skip luxury items because they think they’re, “just a pain in the neck.”

He’s a great example of “just because I can afford it, doesn’t mean I should get it.” And this goes for everyone, no matter how much they’re making. If you have realistic goals for investments and savings that you wanna hit, then any and all financial decisions are a big deal.

5. Live in a Simple Home

Billionaires can afford to live in expensive mansions, and many do. However, there are frugal billionaires, like Warren Buffet, who choose to live in simple homes. He’s lived in the same five-room house since 1958.

There’s no need to constantly upgrade and start that lifestyle creep.

6. Fly Economy

There are billionaires and millionaires who fly economy, and save the money that could have been spent on first class.

And it looks like we’re running into a lot of the same scripts. It’s so much better to stick to your monthly budget and grow your savings, then to just spend money on something that sets you back.

7. Use Public Transportation

World-famous billionaires like Charles Feeney choose to walk, ride a bike, or use public transportation frequently. They know they can afford to use a helicopter for their meetings, but they don’t feel the need for it.

So, try these options of transportation, it’s not only good for your budget and health, but also nature-friendly.

8. Wear Simple Clothes

We all think that the rich wear designer clothes and shoes all the time, but frugal billionaires keep things simple. A good example is David Cheriton, who wears jeans and a t-shirts, or John Caudwell, who prefers to buy his clothes off the rack.

So if you want to achieve something in life, and change up your mindset around money, then always remember that you don’t need expensive brands to be someone. It’s an easy way to spend money while also staying behind.

9. Always Keep Learning

The self-made billionaire, Warren Buffet said, “The more you learn, the more you earn.”

And it really is true. I’ve heard so many successful people talk about all the books they read to grow their financial knowledge and mindset. They’re constantly taking in helpful information to become a better person.

So if you also want to grow in financial literacy, then never stop learning. Read books from some of these billionaires, and listen to podcasts like How I Build This to get into their heads.

It’s one of the best investments you can make in yourself.

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