Making money is one part; you can’t be rich just by making money; there is a second aspect to becoming rich: you need to save money.

Saving money is as important as making money. You will see all the rich people have this habit of saving money, and they will advise people to save money in their interviews.

Here is what Jeff Bezos, founder of Amazon, has to say. According to Bezos, avoiding major expenses for the time being is a fantastic way to boost your savings. This means that if you were planning to buy a new automobile in the next few months, you should put it off as long as your current vehicle is still running.

In this post, we have brought you seven tips to save money from the second richest man on earth.

Elon Musk, nicknamed Elmo, who is also considered to be the modern Albert Einstein, has given seven tips for saving money.

Elon musk’s tips to save money

#1. Invest in yourself.

Musk has a talent for making money and investing it in his next business. He could have bought lavish homes, expensive cars, and exotic vacations with his first $22 million fortune from the sale of Zip2 to Compaq in 1999, but he chose not to.

He spent $100 million in SpaceX, $70 million in Tesla, and $10 million in SolarCity in 2022, after receiving a $180 million settlement from the sale of PayPal to eBay. He was able to become the richest man in the world because of these good financial decisions.

#2. Don’t hesitate to take Risks.

Making a large profit from the sale of not just one, but two businesses is a remarkable achievement. Musk took a risk when he decided to reinvest all or most of his money in new businesses.

Musk took several chances, and they almost always paid off. Many other people may have played it safe by looking for secure investments for their money.

#3. Live within your means

As one might expect from a billionaire, Musk used to have a large number of homes, but things have changed.

In May 2020, he tweeted, “I sell almost all tangible items.” He won’t own a home of his own.

According to a Wall Street Journal article from March 2022, he kept his promise and sold seven homes for around $130 million. He tweeted in June 2021 that he spent around $50,000 on his primary house in Boca Chica, Texas.

The home originally had two bedrooms and was a short distance from the SpaceX plant. But as Musk stated on the Full Send podcast, he turned the garage into a third bedroom. Also, he mentioned that he manages a small, boxy house in Boca Chica as a guest house.

The idea is to seek a home that fits your budget rather than buy real estate. Rather than feeling compelled to spend at the upper end of your price range, consider a cozy house that meets your needs without going overboard.

#4. Use your money wisely

Musk can live modestly most of the time, but he also spends lavishly at times. According to Austinia, he just paid $78 million for a Gulfstream G700, a highly luxurious private plane.

The plane features “the largest spacious cabin in history” and can accommodate 19 people. It can travel up to 7,500 nautical miles without stopping for fuel.

Of course, you’re not going to spend $78 million on a private plane. However, as long as you stay within your budget, you shouldn’t be scared to splurge on something important to you.

#5. Avoid Expensive Vacations

Musk does not spend his days on vacation like many other millionaires do. This well-known workaholic has made it known how little time he spends with his friends and family.

He did, however, tweet in 2014 that he and his children were out camping for the year. Although he hasn’t made his camping choices known, they probably won’t be lavish.

The lesson to be learned from this is to take trips that you can afford, not to avoid taking holidays. Simple vacations, like a cheap camping trip, let you relax and reenergize without breaking the bank.

#6. Look for a cheap hobby

Musk could afford many expensive hobbies, given the size of his bank account. However, its hobbies and interests are quite particular.

The fact that he still plays video games is proven by his tweets about playing Halo Infinite. In June 2017, during Tesla’s annual shareholder meeting, he was reportedly asked what he did in his free time.

Musk claimed that he likes to see movies, spend time with his children, and listen to music while driving.

Musk may not have much time for his hobbies, but he undoubtedly saves a lot of money by engaging in them. Learn by looking into cheap hobbies you can do in your spare time.

#7. Participate

In 2012, Musk signed The Giving Pledge and promised to leave the majority of his wealth to charitable organizations either during his lifetime or as part of his will. By giving $5.7 billion to charity in 2021, he kept his promise.

According to a necessary securities filing, he secretly gave a charity or organizations around 5 million Tesla shares in November 2021. The shares were valued at around $5.7 billion at the time of the donation, according to The Chronicle of Philanthropy.

Despite Musk’s infinite capacity for giving, each gift is important. Any financial support you can provide to a worthy cause that is dear to your heart will be much appreciated.

Of course, giving money isn’t the only way to help others; volunteering may also benefit individuals and institutions.

In my opinion, the best way to save money is the 50,30,20 budget rule.

What does the 50–30–20 budget rule mean?

A straightforward method for improving your money management is the 50/30/20 rule of budgeting. Your post-tax income should be divided into three categories for spending: necessities (50%), desires (30%), and savings (20%).

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