When we think about billionaires we tend to think about private jets, lavish meals, enormous houses and fast cars. However, there are a few billionaires who prefer much simpler, more frugal choices. While it may be hard to imagine Kanye and Kim clipping coupons, it appears some billionaires do appreciate a good budget and living well under their means.
Here are some penny pinching habits of frugal billionaires and what we can learn from them:
Who: Ingvar Kamprad is the founder of Ikea, a company well known for its frugal furniture options.
Frugal Habit: According to this recent article in Time, this billionaire wears almost only second hand clothes.
Our Take: We have been fans of shopping Goodwill and second-hand shops since forever. Not only does it mean less money out of your pocket, but less waste overall. If buying used doesn’t sound good, try buying less. Spend your money on better quality items, but fewer of them.
Who: Mark Zuckerberg is the founder and CEO of Facebook, one of the world’s largest companies.
Frugal Habit: This billionaire has long lived a modest lifestyle well under his immense net worth. One example is driving a modest car, not an expensive or custom one. In fact it’s a hatchback!
Our Take: Smart choices with money should not involve appearances. Big ticket items such as cars have more functionality than anything else so stick with one that fits your budget. Driving an expensive car when you can’t afford it is not worth the stress financially. If you need more flash, add it somewhere else in your life that’s more affordable.
Who: Warren Buffet is considered the most successful investor in the world, with a net worth somewhere near 66 billion.
Frugal Habit: Think someone this successful enjoys multiple homes in exotic locations? Nope. This billionaire lives in the same home he bought in 1958!
Our take: Homes are usually the biggest purchase American adults will make int heir life. Finding one that meets your needs but doesn’t stretch your intake is a smart move. Even smarter? Not giving in to the pressures of “upgrading” when it becomes possible. As Mr. Buffet demonstrates, living in a bigger home doesn’t mean it’s better.
The bottom line is that these billionaires prove that making smart money moves is a lifetime choice. Develop smart habits early on and keep them in place even when your financial situation improves. These three frugal billionaires are also great examples of big picture thinking when it comes to personal spending habits. Clothes, cars and homes eat up a lot of our budgets, but deciding how much is up to us!