30 most important tips to be a millionaire no matter how much you make. 26

I have been thinking of summarizing the ways of being frugal and get rich slowly for a long time and the time has came. This is the post that I will be updating periodically if I can think of more later.

1. Always separate needs and wants (Needs VS Wants)

and once determined what your needs are, then wait for sales. Try together with your wife or significant others. Once you master it then you will see your spending dropping by 20-40%. Those saved money will work harder to make more money for you. Spend less than you earn!




2. I don’t buy coffee outside

unless I have to. Drink coffee at work or bring it from home. $3- $10 a day can make you a millionaire in the future. The same goes to your snacks. Stop going to the vending machines. You are helping others get rich by paying for their 200%-500% markup.




3. I bring my lunch to work

except Friday as I am a human being and eating out on Friday make me feel like it is finally Friday. Again saving $10 a day will make a huge difference.




4. Do laundry with cold water

Your detergent will do a fine job without hot water.



5. I accelerate and brake smoothly

and maintain the same speed (the most efficient speed is around 50 -55 mile (80-90km) per hour) if I could. This smart habit would save you 15-35% of your monthly fuel cost. Think about $250 * 35%= $88 in your pocket.




6. I use great Cash back credit card.

I use MBNA cash back credit card and this easily double my cash back amount See the the following credit card section for more info. Best US credit card  Best Canadian credit cards


7. Pay off your credit card 

Are you one of people that pay 19.99% of interest because you don’t pay the credit card balance in full every month? What’s the point of getting 2% cash back when you pay 19.99% of interest for the balance? Cut back spending and get the hell out of credit card debt. Not only you but your family is in great risk!



8. I use indexed ETFs

to keep my MER very low. See the Index/Passive investing section for more info.

8 etf

My two favorites ETF providers

9. I don’t pay banking fees.

I keep minimum monthly amount in my chequing account. I use only my bank ATMs. I don’t use checks.

9 bank fees

10. I don’t eat out often.

They are not very healthy and clean. I used to work in a 4 star hotel as a bakery assistant and trust me the food looked good outside and also tasty but the process of making it pretty was disgusting. Although I am not saying all the restaurants are like that but they are not as clean and healthy as what you cook at home.

10 eat out less

Look at this freshly prepared home meal. Total cost= less than $10 including two cans of delicious beer.

11. Try cheaper but same quality brands.

You know that you are paying premiums for their advertising and marketing. I pick a bag of Kirkland dog food from Costco that is rated very high (No by-products) every month for 50% less cost than other pet store brands’.

11 value

12. Buy bulk when you can

If you have a big family and not going to Costco then think once again. Their produce quality is amazing because of their high turnover and they are priced very reasonably. Pick your daily foods like eggs, milks, yogurts, bread, meat as well as things that last long time- cereal, cookies, your snacks, soap, shampoo etc…  I save at least $30-$80 every month by using Costco buying it bulk.


12 costco

I am for both!

13. If you smoke, quit!

It is killing you everyday, costs you lots of money and you smell terrible. Other people are being kind to you by not telling you that you smell terrible but they really want you to be quiet in the elevator. Check out the following link which will make you a millionaire.

13 quit

Total difference of $11,304 is totally worth it!



14. Use coupons and purchase sales items.


I am not an excessive couponers but I love sales!

15. Extra money such as bonus, raise?

Use the money to pay off your mortgage or other debt and invest. Don’t even think about going spending spree. You will thank me later.

15 bonus

Grow that bonus tree

16. Utilize Insurance for rainy days.

Auto insurance, home insurance your health insurance etc.. are what you need and will save you a fortune when you extremely need them.

16 ins

17. Shop around for insurance

and any discounts you can get such as certain university saving, professional saving etc.. Also pay higher deductible to lower the overall premium cost. Check car insurance tip for more saving info. Just 10 minutes would save you $50 per month.

17 insurance

18. Don’t be on debt.

Why are you making other people richer and making yourself a slave of your current job? If you cannot afford to pay at least down payment of 20-30% of the full price of the house then don’t buy house. You can’t afford it. Rather save and invest wisely until you can afford it.


19. Cut the cord.

I bought Philips antenna from amazon which gives me uncompressed 20 HD channels that I need for free. Monthly saving of $50-$100 that goes to your pocket. The same goes to your landline. If you don’t need it cut the service off. See how to save $1,000 annually from cable bill.



20. Buy quality products.

They last longer.


Quality over Quantity

21. Car maintenance

Always take care of your car and don’t forget your regular oil change and other maintenance. FYI, I do all the self maintenance myself such as topping up and changing engine oil and filter, transmission fluid, brake fluid, engine coolant, cabin air filter, engine air filter, winter-summer tires etc… The manuals are excellent and there are so many youtube videos for self maintenance. I save about $300-$500 yearly by doing all those things myself and I enjoy doing it. It is a fun hobby.


22. Invest for long term and be frugal

Financial success does not come from making money but keeping it. Check the following section for more info. How to simply invest for dummies. Dividend is the king Index/passive investing and see how I have been doing.

div growth 201603

There is nothing sweeter than growing dividend payments.

23. Impulsive purchase?

When you are about to buy something expensive impulsively, imagine there is someone telling you you can chose only one between a) the expensive product b) cash that can buy the product. If you spend money on things, you will end up with the things and not the money.



24. Keeping up with Joneses?

Find friends with similar traits with true heart rather than friends that like to show off. No need to keep up with the Joneses because they are buried in debt, and are not happier than you are. Will Smith said “Too many people spend money they haven’t earned, to buy things they don’t want, to impress people they don’t like”


Who cares what others think. Do whatever make you pleased.

25. Track your net worth


Tracking will make you super focused! and it is a great addiction to have!


Track your spending and net worth every month. (See my net worth in May 2016) You will find areas where you can cut back spending, save and invest for your family’s future. Knowing where you are and where you are headed is extremely important to become financially successful.


26. Big no no for mutual/hedge funds

Buy well diversified ETFs or blue chip companies you can explain to 8 years old instead. 2% management fee does not seem much but when your fund provides 4% return on average then your bank takes 50% of what you made. When in doubt, choose the investment with the lowest fees. Mutual funds suck


Priceless picture from Bloomberg

27. Invest in yourself and get paid what you are worth

Do you have distinctive skill sets that your employer cannot replace you easily? then you probably are worth a lot more than what you are currently paid. Ask for a raise confidently. Even if you don’t get the raise (hope you do) you will get respect from your employer.


There is no investment that gives higher returns than investing in yourself.


28. Dress accordingly

Just as you try hard to dress appropriately for your age, you should spend appropriately for your income.


29. Travel and learn


30. Renting isn’t wasting your money

It still provides a roof over your head and makes you feel safe at night. Well planned renting helps you build your wealth over time on top of flexibility. Check Renting vs Buying for more tips.

What is your favorite tips? Have you enjoyed the post?  Then share the post with your friends, like my Facebook page and subscribe your email for more free updates.

I never lose either i win or I learn


When I started this blog, our net worth was around 80K (excluding our car) and that only provided us less than $2,000 of annualized dividend income. However, now it provides predictable $7,000 of annualized dividend income per year and that number will always go up. Amazing huh?

Building your dividend portfolio isn’t very difficult. See the following links for excellent ways to save money and invest.

Check out my portfolio page to see what stocks I own and the following article for more investment tips-How to Simply Invest and Get Richer for Dummies in 8 Easy Steps.

If you are also a dividend investor like me, then you should check out the following page to see how other dividend investors are doing. You won’t regret a moment of reading their valuable and inspirational articles. Blogroll

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