About 5 percent of the adult population in the U.S.—or about one in 20 people—are millionaires. Entrepreneur and investor John Rampton is one of them. Rampton, who achieved millionaire status early in life, has made some savvy decisions along the way. As he recently told Inc. Magazine, he credits these eight frugal habits for helping him achieve and maintain his goal:
- Live within your means – The more we make, the more we tend to upgrade. But, points out Rampton, Warren Buffet still lives in the small Omaha home he purchased in 1958. Do without a McMansion or a luxury car and let your money work for you instead.
- Don’t pay full price – Shop at discount and big box stores and look for bargains on near-new merchandise via sites like eBay and Craigslist. You’ll find you can buy quality goods without paying full retail price.
- Cut out unnecessary expenses – Pare your cable expense. Cut the daily latte. Never pay ATM fees. Small savings add up to more funds for saving and investing.
- Rent or sell your stuff – Sell clothing and other things you no longer want at consignment shops or online. Take in a roommate or rent out a spare bedroom. Rent out extra garage space. It’s quick, easy cash you can use to help you climb the ladder.
- Leave the plastic at home – Being out without a credit card helps you curb expenses and avoid impulse buys. Limit the amount of cash you keep in your wallet so you are not tempted to go overboard.
- Don’t waste money trying to get rich quick – Studies show that 16 percent of the wealthy gamble on sports each week, versus 52 percent of the poor. Nine percent play the lottery each week, as opposed to 77 percent of the poor. Don’t waste money on any get-rich-quick promise because they rarely, if ever, pan out.
- Go green – Recycle cans and cardboard. Consider carpooling or taking public transportation to work instead of driving yourself. Reduce heating and cooling bills by adjusting your thermostat, and spring for energy-saving appliances.
- Get a side job – Besides earning you extra income, having a side gig is a good way to keep you out of stores and restaurants in your spare time.