Frugal Billionaire Tips

I just read Frugal Billionaire Tips (link below) and here is my take on the seven ideas they presented.

1. Keep your home plain and simple and just what you need and don't live beyond your means or beyond what you project your means will be (future earnings). Bigger homes means bigger upkeep costs, utilities, insurance and taxes, and these go up every year. Look at the overall big picture costs times the years you think you will be there.
If the house has an inground pool, take the expense of operating or fixing it into serious account.

2. Use public transportation, walk or ride a bike.
You get exercise and you don't have to pay out for gas, insurance, or upkeep of a car.
Of course, you may have to buy new shoes or fix your bike but those cost less.

3. Buy your clothes off the rack and I say, buy them on sale or with coupons.
Outlet malls are a great place to shop for bargains. Check their site to see if they offer coupons for additional discounts.
Get good quality clothing that has a classic look so that you don't have to spend more money on your wardrobe than you have to for years, just add a few new quality pieces to mix and match.
Upscale consignment shops offer many great bargains on quality used goods in good used shape, new, or never worn.
My husband got a superior quality Italian suit at the consignment shop for $20 on their seasonal sale rack. He has worn this sharp suit for a number of years and it never goes out of style.

4. Don't spend a ton of money getting a hair cut, or having your nails done.
Go to a regular everyday salon and find a good stylist that offers services for a reasonable price. Do your nails or color your hair at home.

5. Drive a regular car. I read that most millionaires drive a Ford.
I also say, buy a good reliable used car that gets lots of mileage, does not cost much to insure or upkeep.
If they offer a warranty/service for a few hundred dollars, buy it.
We got a Windstar van with very low mileage and got the 5 year warranty of parts and oil checks for a few hundred dollars.
Over the 5 years, it needed work that ended up costing more than we paid for the van in the first place.
We were glad we spent the money on the warranty.

6. Skip luxury items -- the article refers to big ticket items like fancy cars, extra cars, boats, planes.
Remember that you have to pay upkeep and insurance on them plus it might take a longer time for you to sell them if the market is slow.

I also say skip every day high priced luxury items and buy your soap and shampoo at the discount or dollar store.
A few good examples:
Expensive shampoos vs shampoos that cost $1.00 (Suave, White Rain). They do the same job without the price tag.
Soap -- 8 bars of Dial in our area costs between $4-6. I found 8 bars of Dial Soap at the local WalMart for $2.97, however, it is not always priced low there so we stocked up.
Toothpaste -- beware -- I found a double value pack of Colgate Total for $4.80 but if I got two of the same size that were single sales, they were only $2.00 each.
And of course, with any of these items, if you can throw in a coupon, you get them cheaper.
Put your savings in the bank and always remember that compounding is your best friend.

Tips from Frugal Billionaires