I’m a Frugal Millionaire: 4 Ways I Prioritize Saving Money

Becoming a millionaire is a dream for many. But what they don’t imagine is that there are a lot of millionaires who continue to live frugally despite their wealth. After all, good money habits don’t stop when you become a millionaire. 

Despite what you might think, frugal living isn’t about depriving yourself or pinching every penny. It’s just having a mindful approach to spending and making conscious choices about where to spend. 

Here’s how one millionaire is frugal with her finances.

Check Out: 5 Frugal Habits of Mark Cuban

Up Next: 4 Genius Things All Wealthy People Do With Their Money

Have a Frugal Mindset

At the core of a frugal millionaire’s habits is their mindset around money. For Brie Schmidt, a self-made millionaire and the owner of Second City Real Estate, the habit of living frugally took root early and has stayed with her to this day. Even when her net worth grew, she never felt the need to drastically alter her spending habits. 

“I have always been ‘cheap’ and lived on a budget, ever since I was working two to three jobs in my early 20s,” said Schmidt. “The frugal mentality has stayed with me no matter how much income I made or how my net worth has grown. I still live on a similar budget as I did 15 years ago. Having a budget and prioritizing savings shouldn’t be about what you can and cannot have. It should be about what is most important to you.”

Having a frugal mindset is the foundation for all of Schmidt’s wealth-building habits. It’s how she has made saving money a top priority throughout her life.

Read More: I’m a Frugal Shopper: 4 Items I Always Buy Secondhand To Save Money

Have a Budget

You can’t achieve your financial goals without knowing where your money is going. That’s why Schmidt lives and dies by her carefully tracked budget. She knows her expenses down to the penny each month. This is how she makes intentional choices about her spending.

“We have a budget that I check every month and if we overspend, we make a conscious effort to keep it in line the next month,” said Schmidt. “Over 90% of our net worth is in investments so we don’t look at it like spending money. I look at it like a pie — there is only so much pie to go around, so if one part is bigger then the other pieces have to be smaller.”

Schmidt scrutinizes every single expense. By questioning every dollar spent, she’s able to save more over time and decide where her priorities are, and how much of the pie goes to each area of her life.

Pay More for What’s Important to You

Having a budget allows you to identify where you can afford to spend a little more if that’s what you really want to do. For Schmidt, travel is her top priority and where she’s willing to splurge the most.

“Travel is the biggest piece of the pie so I am willing to make the other pieces smaller to afford more travel,” said Schmidt. “We just took a trip to Europe and paid much more for direct flights than if we had a layover because traveling with toddlers is stressful enough.”

However, Schmidt balances those bigger expenses by saving on other parts of the trip. 

“We don’t stay in luxury resorts and would much rather save on accommodations to spend money on activities and excursions,” she said. 

Frugal millionaires are highly selective about where and when they’re willing to spend freely. The point is, they aren’t cheap across the board. Spending generously in just a few areas gives them immense value where it matters most.

Spend Less on What’s Not Important to You

On the flip side, Schmidt is ruthless when it comes to cutting costs in areas that aren’t a priority to her. Any costs that don’t bring value to her life get reduced or eliminated. This means she chooses generic labels instead of name brands, eats out less and just says no to impulse purchases. 

“We cook instead of going out to eat,” said Schmidt. “We have a nice espresso machine at home instead of buying coffee every day. I do not own a single item of clothing that is a brand name, and I don’t think I have ever spent more than $75 on an article of clothing in my life. Those things aren’t important to us so it doesn’t feel like we are missing out.”

You’ll rarely find frugal millionaires splurging on name-brand consumer goods, the latest fashion trends or other expenditures that don’t serve their purpose. While they may occasionally indulge in these areas, it’s the exception rather than the norm.

More From GOBankingRates

This article originally appeared on GOBankingRates.com: I’m a Frugal Millionaire: 4 Ways I Prioritize Saving Money

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

More Related Articles

Info icon

This data feed is not available at this time.

Sign up for the TradeTalks newsletter to receive your weekly dose of trading news, trends and education. Delivered Wednesdays.