How To Live Like A Millionaire On A Shoestring Budget

One of the biggest challenges for any mom is making ends meet.  But why should you stop at just scratching by?  Why not try to live like a millionaire on a shoestring budget.  Think it can’t be done?  Well, it can and you can raise a family in relative comfort without needing to worry about breaking the bank.  With that in mind, here are some tips on how to live like a millionaire.

1)  Geo-Arbitrage

I know this sounds like a fancy stock trading scheme, but the concept behind geo-arbitrage is very simple – find a low-cost place to live.  Doing so will all you to stretch each dollar even further and this will pay big dividends over time as having a lower cost of living is a great way to increase your savings while enjoying the little things in life.

So how do you turn this dream of living large in a low-cost area to fruition?  First, you’ll want to look at what you do for a living.  The reason is simple as it makes no sense to move someplace cheaper only to spend three hours a day commuting.

That being said, if your job allows you to work from anywhere, then why not.  But let’s face it more and more people are contracting or running home-based businesses and this is a great way to free yourself (or your husband) from the drudgery of the ‘office’.

Next look at what areas make the most sense.  Maybe you enjoy the mountains, or maybe you want to move to the tropics.  Either way, you can find plenty of options – at home or abroad – to save big.

2)  Win Big with a Small Business

Granted, being a mom is a full-time job but for some of us, especially with old children, there is some time to try something else.  Why not win big with a small business?  Maybe it is something you have been thinking about for years or maybe it is franchise opportunity.  Either way, setting up a small business is a great way to increase your family’s cash flow.

In fact, increasing your cash flow is one of the biggest secrets to living like a millionaire.  Now, this is not to say that you need to work 100 hours a week but if you want to live like a millionaire then you need to find some extra money to set aside for investments.  In this way, your money works for you and the best way to achieve this is to start a small business.

3)  Find the Free Stuff

One thing to know about millionaires is that they hate to spend money, at least most of them do.  There is a simple reason for this – you won’t have any money left if you spend it all.  As such, don’t splurge on luxury hotels, instead use credit card reward points to pay for travel.  Or even better find ways to get free nights as a secret shopper or as a travel writer.

It’s easier than you think and many people are currently traveling the world for free because they are known travel writers or they have found another way to subsidize their travels – by volunteering for example.

4)  You’ll Never Get an Answer if You Don’t Ask

One thing that rich people do better than most is that they simply ask for what they want.  They are not worried about being greedy or impolite.  Instead, they know it is their money at stake and they want to get the best value for money.

Keep this in mind the next time you go out to eat – don’t be afraid to ask the restaurant if they have a special menu or a discount.  The same applies the next time you buy a home.  Once you locate a lender, ask them about the fees and the costs and see what they can discount.  After all, it is your money.

5)  Understand the Value of Money

As mentioned, millionaires don’t like to spend money and a key part of this equation is that they take care of the things they have.  Now part of the reason is that they are cheap but the other reason is that they understand the value of money and the know they can’t go out and buy a new car every year.  Heck, if your car can last 10 years, then why not take the money you save on car payments to invest as this will give you a much bigger return over time.