Frugal Tips From Frugal Billionaires
I know what you’re thinking- if you were a billionaire, you could afford to be ‘frugal’ too. After all, what does that even mean if you make thousands of dollars a minute? It remains oddly inconsistent, however, that many of the world’s billionaires live simple, non-expensive existences. Maybe it’s a factor in their enduring wealth. Here are some tips, inspired by Yahoo! Finance.
Simple At The Homestead
I know I’ve written of it before, but the first time I heard of the home of Warren Buffett, I literally sat in shock for a couple of minutes. Here is a man who could afford a Central Park penthouse, or island paradise in the Bahamas, but instead resides in his Omaha home which he bought in 1957 for $31, 000. Keeping your wants in line with your needs is a crucial step to financial security. It’s a worthwhile lesson for all of us who consider mortgages far in excess of what we can afford, for houses we can probably never fill.
Walk To Work
Cherie Blair was by no means a billionaire, but being the Prime Minister’s wife and an influential lawyer herself, she probably wasn’t short of a dime. And while you could look at her habit of catching the tube to work everyday as a cynical one-with-the-people gesture, whenever I catch a train, my respect for the gesture remains. It seems incongruous, a billionaire catching a train or walking to work, but it’s a smart financial practice to get into your day-to-day.
Off The Rack
I am not going to lie- if I was a billionaire, I would buy a really good pair of boots. But that might be why I will never be a billionaire, all I can think of is what I would do with the wealth. How common is it to see absurdly wealthy people looking positively disheveled? The stereotype of the genius entrepreneur wearing jeans and a t-shirt endures for a reason. As with the rest of their lives, simplicity and moderation underpins their lives. Including ignoring designer suits and expensive clothes, and buying off the rack. After all, for a lot of us, clothes are a status symbol and the mega-wealthy don’t have much need to parade their status around.
Cut At Home
Apparently John Caudwell cuts his own hair at home. This blows my mind, but I can see the thinking behind it. A haircut in a reasonably nice place, but my no means top range, can cost $100 without any hassle. And if you’re getting your hair cut every six weeks, that’s a huge expense. So why not trim your own hair, and treat yourself to a hair shape every six months or so if it really matters to you?
Drive The Old Reliable
Ingvar Kamprad drives a ten-year old Volvo. I can’t claim to understand why anyone would choose to do that, but I find it inspirational. The founder of Wal-mart drives a 15 year-old truck. They buy a reliable car they know will run until the day it finally collapses and then, and only then, do they buy a new one. Big schnapps on that one.
Choose Your Luxuries
Carlos Slim could spend a thousand dollars a minute for the next 100 years, but doesn’t pwn a yacht or a plane. Warren Buffett thinks most toys are a pain in the neck. Clever people, who spend money on the things that give them lasting joy. I’m going to think of that next time I go to buy a kitchen gadget or useless ornament.
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