Frugal habits of the super rich

News.com.au

Facebook CEO Mark Zuckerberg wears the same grey t-shirt every day.

YOU might think the lifestyle of a billionaire is made up of flashy cars, first-class trips and ostentatious designer clothing.

But the rich don't get rich by spending all their money.

Spending less than you earn is a simple way to grow your wealth but there are some super rich people take the idea to the extreme.

Reports this week said Keira Knightley paid herself a salary of just $50,000 last year, despite banking around $2.3 million through films and fashion commercial deals.

Here's a list of other frugal billionaires and multi-millionaires and their quirky habits, that see them living well below their means.

Warren Buffett

Legendary US investor Warren Buffett, who has an estimated net worth of $US54.6 billion, famously still lives in the same five bedroom house he bought 55 years ago for $US31,500.

Carlos Slim Helu

One of the world's richest men Carlos Slim Helu, who has an estimated net worth of $US67.2 billion, lives in the same modest house he has owned for 30 years, reports the UK Telegraph. His bedroom is said to be "the size of a Manhattan hotel room".

Mark Zuckerberg

Facebook founder Mark Zuckerberg wears the same thing every day.

"My drawer is about 20 of these grey t-shirts," he told NBC's Today last year.

He drives a $US30,000 Acura TSX and lives in a $US7 million house, which might sound like a lot of money but is well below the means of a man worth $US13.3 billion.

Chuck Feeney

Chuck Feeney, co-founder of Duty Free Shoppers who has donated his fortune of more than $US6 billion to charity, travels in economy class "because first class won't get me to my destination any faster". He doesn't own a house or a car and wears a $15 watch.

Ingvar Kamprad

Ikea founder Ingvar Kamprad also prefers to fly economy class, and prefers to book with budget airlines. He was once refused entry to a business award ceremony because he had come by bus.

And he isn't one for fine dining, with express.co.uk reporting he prefers to eat his favourite Swedish meatballs in Ikea cafeterias. He also reportedly swipes salt and pepper packets.

He also encourages his Ikea staff not to be wasteful, and tells people off if they don't use both sides of a sheet of paper or leave lights on when they leave a room.

T. Boone Pickens

US oil magnate T. Boone Pickens, worth $US1.2 billion, reportedly shops with a grocery list and only carries enough cash in his wallet to cover what he is about to buy for better budgeting.

James Caudwell

UK mobile phone mogul James Caudwell, worth more than $2 billion, cuts his own hair. Before his retirement he would save money on petrol and stay fit by riding his bike to work.

Azim Premji

Indian mogul Azim Premji, worth an estimated $US11.2 billion, drove a Ford Escape for eight years before he traded it with a Toyota Corolla. When he travels he prefers budget hotels over five-star accommodation. There is also a rumour he used paper plates during his son's wedding.

Graham Hill

Graham Hill, tech entrepreneur and founder of sustainability news website Treehugger.com, believes that having less stuff equals more happiness. He has given TED talks on his "life editing" strategies and he personally lives in a 39sq m apartment where his bed and home office fold out of the wall.

Comments

  • +11

    Best bit: ""because first class won't get me to my destination any faster". Too true, but wouldn't knowing that you could afford to upgrade anytime (should you want to) be nice.

  • And [Ingvar Kamprad] isn't one for fine dining, with express.co.uk reporting he prefers to eat his favourite Swedish meatballs in Ikea cafeterias. He also reportedly swipes salt and pepper packets.

    Thanks. I'm pleased to know that I eat better than he does. :)

    Graham Hill, tech entrepreneur and founder of sustainability news website Treehugger.com, believes that having less stuff equals more happiness.

    There is some truth in that; less hassles with less possessions. But too few and life is also hard.

    • real like swedish meatballs i know few very rich people some poor looking people i know.

      • +2

        ?

  • +1

    Possession is overrated.. until I check ozbargain!

  • +7

    The Keira Knightley thing will be for tax. If the contracting company she works for (e.g. Keira Knightly Acting Services Limited) supplies her with a house and car and food etc. they can not pay tax on that, as many countries don't have a Fringe Benefits Tax.

    • If the $50,000 is spending money, that's not bad. $130 per day can buy you a nice lunch and a lot of coffee.

    • +1

      Yeah many of those $1/Year salary CEOs with huge financial compensations elsewhere.

      • yep, I believe those $1 salaries are just so income tax is kept low while they make heaps on the stocks they are given and that's subject to the lower Capital Gains Tax

  • Some of them are just weirdos, whom OCD focus just happens to make them money, at the same time some are just damn hardworking that they have no time to spend, think about spending money.

  • +6

    They forgot me. That's probably a good thing though. I get to retain my privacy. ;-p

  • So…the first three aren't frugal habits? Maybe they like their houses and grey t-shirts. Doesn't mean they're doing it to save money.

    • It kind of is. They're billionaires, - so they could have bought multi-million dollar houses (and possibly change it to a bigger and better one every other year) but they have chosen to stay in their existing house and have their money work for them elsewhere.

      As to grey t-shirts, he could be burning through cash on flash business suits, etc but just goes the cheap (and comfy) option!

  • Just shows their focus is not 'just' on the money. That's the key to making it, as long as you have a good accountant and lawyer - financial and legal advice.

    No, I stopped going for the money years ago and haven't made any since but have enough, more than most it seems, if it comes to the crunch.

    • mark u have right idea never seen rich work flash worker who happy. money is not everything

  • +1

    There's an interesting book written on this topic. It's called The Millionaire Next Door. Good read.

    • and another called "Stop acting Rich"

      not as awesome as the first. but pretty darn good.

      If I were a high school teacher I'd make "Millionare Next door" compulsory reading.

  • +4

    I think the take home message of the article (at least for me) is this:

    But the rich don't get rich by spending all their money.

    We sometimes see discussions here on OzBargain along the line that "you wouldn't be here browsing OzBargain if you earn 6-figure income" or something like that, as though bargain hunting is only reserved for the poor and unprivileged. The society and the media also give us the impression that if you are wealthy, you ought to spend $50 on lunch and shop in expensive shops, or almost a shame if you look up coupon codes.

    I just think these perceptions wrong and unhealthy.

    • By owning Ozbargain, you would be biased though. :P

    • That's true. A couple of years ago, Google ad planner was telling us that 55% of OzBargain visitors made > $100K. http://www.ozbargain.com.au/node/26202

      • That's by household though isn't it?

        • Ah yes, good point (I missed it in both threads). Still not poor (well maybe in Sydney ).

        • +1

          I would guess also Google is using the average of the suburb. So the interesting speculation is are OzBers average?

    • +1

      Completely agree Scotty.

      There was an interesting article on higher income earners flocking to Aldi recently;
      http://www.couriermail.com.au/news/queensland/highest-earner…

      • +2

        Yeah Aldi is a classic example. We have a few friends who would not buy from Aldi because they automatically associate "cheap price" with "cheap bogans buying junks". They don't want to be in a crowded super market fighting for weekly specials.

        WTF?! Not that they are well off in the first place. Some actually have problem saving up.

        It's actually easier to start thinking frugal and saving here and there from little things, then dreaming about landing the next big pay job.

        Anyway. I think that the fact that Aldi's products won quite a few prizes had finally convinced some of them. That's a "well done" on Aldi's part.

  • +1

    maybe this post is to try teasing out the closet millionaires here on Ozb? lol!

    ps "….He doesn't own a house or a car and wears a $15 watch" atta boy Chuck, keep all your major possessions in a family trust….. ;)

  • theres a flipside

    roman abramovich, paul allen etc.

    i personally think i live very well with all the gadgets i like

    the difference is that if i was rich i'd start collecting cars and probably learn to do things like fly a plane

  • Seems a bit like all us ozbargainers!

  • I'm impressed anyone super rich could put up with economy when they had a choice. I don't think I could be that disciplined if I was loaded. :) I also impressed if true that some rich would stay in a budget hotel. I've stayed in 5 star hotels and I'm poor. lol

    • +1

      While visiting the States I've stayed in a few 5 star hotel. Absolutely hate it. Reason being they offer a lot of extra services like opening the door, carry your bags, unnecessary room servicing, hailing a cab, loading your luggages etc etc. I wouldn't mind them if it wasn't for the fact that I have to tip each time someone does something for me!

      Give me a clean 2 star motel any day. Can never understand why people will feel privileged when offered such frivolous services.

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