7 Spending Tips From Frugal Billionaires

Ibeefaaa

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Carlos Slim Helu (Carlos Slim), a telecom tycoon and billionaire with well-known frugal tendencies, has a net worth of $60.6 billion, according to Forbes. Assuming no changes in his net worth, he could spend $1,150 a minute for the next 100 years before he ran out of money. To put this in perspective, he could spend in 13 minutes what a minimum-wage earner brings home after an entire year of the daily grind.

Granted, the world's billionaires (all 1,011 of them) are in the debatably enviable position of having, quite literally, more money than they can possibly spend, yet some are still living well below their means, and save money in surprising places. Even non-billionaires (currently 6,864,605,142 of us) can partake in these seven spending tips from frugal billionaires:


1. Keep Your Home Simple
Billionaires can afford to live in the most exclusive mansions imaginable -- and many do, including Bill Gates' sprawling 66,000 square foot, $147.5 million dollar mansion in Medina, Wash. -- yet frugal billionaires like Warren Buffett choose to keep it simple. Buffett still lives in the five-bedroom house in Omaha that he purchased in 1957 for $31,500. Likewise, Carlos Slim has lived in the same house for more than 40 years.
2. Use Self-Powered or Public Transportation
Thrifty billionaires including John Caudwell, David Cheriton and Chuck Feeney prefer to walk, bike or use public transportation when getting around town. Certainly these wealthy individuals could afford to take a helicopter to their lunch meetings, or ride in chauffeur-driven Bentleys, but they choose to get a little exercise and take advantage of public transportation instead. Good for the bank account and great for the environment.
3. Buy Your Clothes off the Rack
While some people, regardless of their net value, place a huge emphasis on wearing designer clothes and shoes, some frugal billionaires decide it's simply not worth the effort, or expense. You can find David Cheriton, the Stanford professor who matched Google founders Sergey Brin and Larry Page to the venture capitalists at Kleiner, Perkins, Caufield & Byers (resulting in a large reward of Google stock), wearing jeans and a t-shirt.
Ingvar Kamprad, the founder of the furniture company Ikea, avoids wearing suits, and John Caudwell, mobile phone mogul, buys his clothes off the rack instead of spending his wealth on designer clothes.
4. Keep your Scissors Sharp
The average haircut costs about $45, but people can and do spend up to $800 per cut and style. Multiply that by 8.6 (to account for a cut every six weeks) and it adds up to $7,200 per year, not including tips. These billionaires can certainly afford the most stylish haircuts, buy many cannot be bothered by the time it takes or the high price tag for the posh salons. Billionaires like John Caudwell and David Cheriton opt for cutting their own hair at home.


5. Drive a Regular Car
While billionaires like Larry Ellison (co-founder and CEO of Oracle Corporation) enjoy spending millions on cars, boats and planes, others remain low key with their vehicles of choice. Jim Walton (of the Wal-Mart clan) drives a 15-year-old pickup truck. Azim Premji, an Indian business tycoon, reportedly drives a Toyota Corolla. And Ingvar Kamprad of Ikea drives a 10-year-old Volvo. The idea is to buy a dependable car, and drive it into the ground. No need for a different car each day of the week for these frugal billionaires.
6. Skip Luxury Items
It may surprise some of us, but the world's wealthiest person, Carlos Slim (the one who could spend more than a thousand dollars a minute and not run out of money for one hundred years) does not own a yacht or a plane. (Reducing the amount you spend is the easiest way to make your money grow.)
Many other billionaires have chosen to skip these luxury items. Warren Buffett also avoids these lavish material items, stating, "Most toys are just a pain in the neck."
What We Can Learn
Some of the world's billionaires have frugal tendencies. Perhaps this thrifty nature even helped them make some of their money. Regardless, they have chosen to avoid some unnecessary spending (at least on their scale) and the 6,864,605,142 non-billionaires out there can follow suit, eliminating excessive, keep-up-with-the-Jones style spending. No matter what a person's income bracket is, most can usually find a way to cut back on frivolous spending, just like a few frugal billionaires.
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Source: http://finance.yahoo.com/banking-bu...ips-from-frugal-billionaires?mod=bb-budgeting


What this guys live for if they have all that money but they use the bus or a "15-year-old pickup truck" ?!:confused:
 

CashInHand

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why work for your money and then not enjoy yourself
 

benpari

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Every single one of these sounds like personal preference rather than decisions made for monetary reasons.

I mean, it shouldn't be a surprise that some billionaries simply don't care about fashion or cars.

You made a good point though. Most billionaries didn't get there by trying to keep up with the Joneses.
 

lewi

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I can totally understand where this article is coming from!

The whole point of this is that they spent the whole of their lives worrying and sorting out things to make money. Now they have it why would they want to have any worry's or have to sort anything out?

An expensive car... security and parking!
Plane... flight paths, learn how to fly it/find someone to fly it, petrol etc
Designer clothes - people wear these to fit in! Why fit in? you have already made it.
etc etc etc

Lewi
 

wookie85

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That is funny, what is the point of working so hard and being a billionaire if you dont enjoy it. If I'm gonna be leaving in a 5 bedroom house from the 50s I wouldnt be working the long hours Buffet puts in....just doesnt make sense in my head...work hard, play hard.....
 

wookie85

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One more point to make - the person that originally wrote this article is probably BROKE !!!
 
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Just because they aren't spending money on high priced items, doesn't mean that they aren't enjoying themselves.

It's just a matter of preference, and how they want to live.
 

CashInHand

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the whole point of being wealthy is to be comfortable, the point of being a billionaire is to spend your money on pointless shit
 

WILLGOUP

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These seem like tips for the UPCOMING millionaire. Not an established billionaire. I'm sorry, but there is nothing respectable about a billionaire who pinches pennies. Not to me at least.
 

Starcodes

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Fake And Gay what's the point of being a billionaire then i think i know exactly what's going on here some people make a pat with the devil to be wealthy but they always have to give up certain things up especially their favorite things they like, to be wealthy or famous you always have to give up your favorite things that' how the game is played it's called worshiping
 

Hogare

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Holy fcuk,talk about Scrooges...

"I've got billions but $45 for a haircut!? Fuck that,I'll do it myself!"

So sad.What's the point?Accumulation?So they can brag how much they've got?

When you've got billions ain't it time you relaxed a bit?

Like,not drive a fcuking old Volvo,or use a bus and let the professional take care of your hair?

These misers make me cringe.
 

christianbed

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I find the most effective way to be frugal is to stay so busy that I don't have time to think about all the gadgets/clothes/vacations I could have. I love taking a break from work though, and I have a nice car/live in a nice area, but it is possible to become too attached to these things as well. My car is great, but it doesn't bring me the same joy that I get from laughing with a few mates over dinner and a pint. (I do cut my own hair though--mostly because I always find problems with how professionals cut it!)
 

LakeForest

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I can totally understand where this article is coming from!

The whole point of this is that they spent the whole of their lives worrying and sorting out things to make money. Now they have it why would they want to have any worry's or have to sort anything out?

An expensive car... security and parking!
Plane... flight paths, learn how to fly it/find someone to fly it, petrol etc
Designer clothes - people wear these to fit in! Why fit in? you have already made it.
etc etc etc

Lewi

You're well on your way to big success. I like how you think.



To everyone: people don't get a $Billion USD/GBP/Euro to buy nice things, they do it to own a significant part of the world and reality. At that point, you're beyond a king; you don't get $Billions and then think "yeah, the best way to enjoy myself is fancy stuff"

With $Billions, your enjoyment will come from steering the human species in a way you see fit and living above normalcy where the only thing controlling yourself is you. Relaxing at that point would to go against everything that made you who you chose to be, a Billionaire.

They end diseases, choose to start wars, invest in technology, wipe nations off the map, patron arts and beautification, lead the world in a direction where the unfit are lifted up or removed. It's a different game entirely..

Old Money, Smart Money, Powerful Money vs New Money, Flash Money, Trendy Money.
 
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Numbuh362

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If I was rich I would want a simple house, simple clothes, and maybe one or two dodge vipers ;)
 

lord1027

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why work for your money and then not enjoy yourself

Maybe they enjoy themselves. There are plenty of happy people who don't have tons of cash. You don't have to be rich to be happy! And being rich won't necessary make you happy either.
 

tmamedov

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Everybody is different. Main thing is happines of each person. Somebody is happy to count pennies
 
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