Advice from the pastlive below one’s income” takes on a whole new meaning when it comes to the words of self-made millionaires. But that’s exactly what Lucy Guo, 28, advises people to do.
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Her trajectory is more than impressive. Ms. Guo has amassed a multi-million dollar fortune through her successful career as an entrepreneur and technology developer. By the time she was 23 years old in 2017, she was named one of her “30 Under 30 in Enterprise Technology” by. forbes.
As the co-founder of Scale AI, a billion-dollar technology startup that provides high-quality training data for artificial intelligence applications, making millions by being frugal comes naturally to him. Mr. Guo grew up in a simple family, which allowed him to understand the value of living modestly.In an interview with luckshe described her childhood selling Pokemon cards before learning how to make money on the internet.
“My parents were incredibly frugal growing up,” she said. “If you complained that it was cold in the house, you would be kicked outside. We saved money on heating, bought very cheap clothes, and licked the dishes clean because the other children Because I said I wasn’t that lucky to get food.”
She said she carried this money mindset into her adult life and tried to live as cheaply as possible until she made her first $10 million. Guo also pointed out that as people earn more money, the cost of living tends to increase and ultimately save less. Instead, she recommends saving and investing more than you spend and taking advantage of compound interest over time.
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she doesn’t hate eating fast food
The billionaire said he’s just as happy eating at McDonald’s as eating at a Michelin-starred restaurant. And she’s far from alone in her approach, as some of the world’s richest billionaires still dine at the Golden Arches.
Legendary investor Warren Buffett once said that he ate McDonald’s breakfast every day and it never cost more than $3.17. Facebook CEO Mark Zuckerberg was also spotted eating takeout McDonald’s in Rome during his honeymoon.
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She used her buddy pass for free flights
A buddy pass is basically a standby ticket to use your friend or family member’s ticket benefits. This means you can board the plane as long as there are empty or available seats. According to Guo, this kind of arrangement was much cheaper than a confirmed ticket.
“I was eating for free, because all I had to do was book a cancelable ticket on Southwest Airlines, go through airport security, go to the Amex lounge, eat, and come back. .”
She bought cost-effective real estate
“I found a place in Las Vegas right next to the airport that was only about $70,000 or $75,000,” Guo said. “I’ll be there in five minutes on my skateboard.”
Investing in cheap real estate and living frugally is a great way to invest without having to incur large initial costs. It may be a wise move financially, but it also needs to be consistent with your long-term goals and expectations.
When asked for advice on how to make his first million, Guo said he feels there is great potential in real estate. She recommends investing in cheap real estate in Las Vegas where you can earn income on Airbnb all year round, and also points out that the compounding value of real estate inherently helps you build wealth.
She reduced her monthly expenses to almost $0.
Although Guo’s approach may seem extreme, some of the world’s wealthiest people reportedly choose to live frugally.
For example, billionaire Carlos Slim Herr, founder of Grupo Carso, has lived in the same six-bedroom house for more than 40 years. Although he is considered Mexico’s richest man, he has foregone luxuries such as private jets and yachts and still drives an old Mercedes-Benz. Similarly, IKEA founder Ingvar Kamprad still flies economy and often takes the bus.
she has a purpose in her shopping
When asked about the most expensive thing he’s ever splurged on, Guo cited his home, but with caution.
“I don’t really think of it as a purchase, because if I sold it, I could still make millions of dollars,” she said. “This is a very good, quick turnaround on my investment. I consider my home a long-term investment. It’s a work of art, and it’s already going up in value.”
What can we learn from Guo’s approach? Buying investments such as stocks, real estate, bonds, and other financial assets has greater benefits than spending money on things like luxury cars or items that collect dust over time. there is.
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