Frugal Billionaire.  

Yes, these people actually exist. 

Those two words don’t always go together. It sounds more like an oxymoron to me.  Why? When you think of billionaires, you almost always think of yachts, private jets, mansions, etc. Everything is high-end and very expensive. Money is not an issue for them. Why would it be?

One of the most famous frugal billionaires is Warren Buffett.  This is a guy who is referred to as the world’s greatest investor with a net worth of around $44 billion. Yet he still lives a modest lifestyle. It hasn’t changed too much since he started raking in the dough.   He is still residing in the same house in Omaha, Nebraska, that he bought in 1958 for $31,500. Buffett is known for his simple pleasures, including McDonald’s hamburgers and cherry Coke, and his strong dislike towards technology, including computers and luxury cars.[1]

Image via https://www.flickr.com/photos/ffrade

Turns out he’s not alone.

Another famous frugal billionaire is Facebook founder Mark Zuckerberg.  The guy isn’t even 30 yet and he’s worth more than $13 billion. Not only is he brilliant, he’s also careful with his money.  Rather than expensive tailor-made suits, his wardrobe consists mostly of hoodies.

During his honeymoon in Italy, he was spotted eating at McDonald’s (Perhaps there is some sort of connection here between billionaires and McDonald’s). He drives a $30,000 or so Acura TSX. [2] The price tag is actually not  much more than what I paid for my car. But my net worth is a LOT less than his and doesn’t even come close.

Some of you may think Ikea is cheap quality furniture, but I LOVE it.  A lot of the furniture in our house is from Ikea and I have no intention on upgrading anytime soon.  Their design concept and the idea of building your own furniture is unlike any other. The founder of Ikea, Ingvar Kamprad is rich AND frugal. He prefers to fly economy class and book flights through budget airlines.  He drives a 15-year-old Volvo and lives in a house full of Ikea furniture (I can’t imagine him having any other kind of furniture).

With regards to eating habits, fine dining is not his style. He actually prefers to eat Swedish meatballs in Ikea cafeterias like the rest of us (If you’re looking for a cheap meal out, Ikea is a great place to eat). On top of that, he also swipes salt and pepper packets.[3]

Not only is Kamprad frugal, he encourages his staff at Ikea to be frugal as well. He tells people off if they leave lights on in a room or don’t use both sides of the paper. Perhaps that may be a bit harsh rather than encouraging, but hey, sometimes you have to remind people. Frugality isn’t second nature for everyone.

Michael Bloomberg is the entrepreneur turned New York City Mayor. He’s also worth more than $30 billion.  Yet he’s been wearing the same loafers for more than a decade. [4]

This is what being rich should truly be about.  Not showing off, flashing things that your money has bought you.  Not making other people jealous.  Of course I still am a bit jealous, but that’s just human nature. These people worked hard to get to where they are today and despite their fortune, they have managed very well to avoid lifestyle inflation and achieved wealth inflation instead.

So why not be more like them rather than the people who throw their money away like there’s no tomorrow. We can learn from their habits by keeping things simple. It just goes to show you that these guys really do get the concept that “less is more.”