4 things a 'frugal' self-made millionaire refuses to spend on |
Jonathan Sanchez has become a millionaire at age 37 through a mix of savvy real estate investments and growth in his financial advisory business. But Sanchez, now 39, says what he doesn't do is every bit as important to his wealth-building mindset as what he does. "Living frugally isn't just about spending less or buying cheap things; it's about being more intentional and not wasteful," he wrote for CNBC Make It. Here are four things he refuses to spend his money on. New cars. It's hard to justify buying a new car when they often shed about 60% of their purchase price within the first five years, says Sanchez. "I prefer buying a used car that is a couple of years old and has less than 100,000 miles." Fast fashion. Sanchez only adds to his wardrobe when his clothes develop holes or succumb to wear and tear. "I don't overthink my outfits. I keep a small closet of simple, timeless clothes," he says. Excess food. "I'm very intentional about my grocery shopping list, and we always plan our meals around what we already have at home," Sanchez says. And he likes bringing home leftovers from a restaurant: "I consider it a deal if I can get two meals for the price of one." Low-quality, big-ticket items. When purchasing expensive, high-use items, such as a mattress or a refrigerator, Sanchez is willing to pay more for something well reviewed and durable. "Being frugal doesn't mean buying whatever is the cheapest," he says. "It's not worth sacrificing quality to save just a few dollars." |
Money Tip of the Week: How to teach your kids about money Teaching financial skills to your child can help prepare them for milestones like going to college, getting married and buying a home. But when should the lessons start? Kids can start understanding money lessons around age 6, says Seth Wunder, chief investment officer at Acorns. At this age, they start to understand math. They can grasp concepts such as setting cash aside now for things they want later, and "if it's gone, it's gone." As children get older, start delving into more complex topics. For 8- to 12-year olds, "you can talk about different types or uses of money. So it could be saving or spending, some of those concepts, building or investing," says Eric Landolt, head of family advisory, at UBS Global Wealth Management. Younger teenagers can take on small financial responsibilities, such as managing a modest budget, and are old enough to begin contributing to familywide financial discussions, such as which charities the family might support. Let kids of any age make small and teachable mistakes, say, by giving them an allowance. Any money lesson is more likely to sink in if you have good financial habits, too. "It's important for parents to practice what they preach and to try not to give mixed messages," says Susan Hirshman, director of wealth management at Schwab Wealth Advisory. |
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Next Gen Investing: Nvidia is worth nearly $1 trillion—here's how much you'd have if you invested a decade ago |
Last week, Nvidia briefly touched a $1 trillion market capitalization before its stock price pulled back. That means the total value of all the firm's outstanding shares was temporarily above $1 trillion. For that moment, Nvidia became the fifth publicly traded U.S. company to surpass the $1 trillion mark. Should its stock price bounce back up and stay there, the chipmaker would join a select group alongside Apple, Microsoft, Alphabet and Amazon. Those are all businesses that have made investors very rich, and Nvidia is no exception. Had you invested $1,000 in the chipmaker a year ago, your shares would have been worth $2,028 by the end of May. Over the past five years through that date, a $1,000 investment would have grown to $6,056. Over the 10 years that ended May 31, a $1,000 investment would have grown to $111,978. |
Worth the Money: Kitchenaid immersion blender — $59.99 |
If you've ever tried to make a blended soup batch by batch in a regular blender, you know how much it sucks. While an immersion blender ($59.99 at KitchenAid.com) isn't technically a must-have kitchen tool, the time and energy it saves for things like soup and applesauce is 100% worth it. Plus, it's so much easier to clean after use. —Emmie Martin, Money Editor |
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