Just because an individual has amassed a huge amount of cash does not mean that they should spend money like it’s the last day on earth. Research shows that even the wealthiest man in the world, Bill Gates, is surprisingly frugal. So are his companions within the world of the rich and famous. They do not splash their cash around; rather, they lead lifestyles that resemble that of an average individual.
Below are some of the reasons why the extremely wealthy people live frugal lifestyles.
“There is no dignity quite so impressive, and no independence quite so important, as living within your means.” ― Calvin Coolidge
They are smart
Frugality may seem cheap, which is not the case. Those who are frugal are smarter and wiser when prioritizing their funds. They have a habit of finding the best value and making good investments, which has contributed to the fattening of their accounts. Although these people have vast sums of money, they realize the real value of their liquid holdings. You should not be ashamed to adopt some of the frugal habits displayed by the rich and famous. By so doing, you could eventually make a contribution to your bank account.
They Do Not Hesitate To Utilize Coupons
Households that have an average income of $35,000 may find it shameful to use coupons. However, the habit of using coupons is surprisingly noticeable among the rich who have an average annual income of $100,000 or more. A number of celebrities, including Lady Gaga, Kristine Bell, Hilary Swank, and Carrie Underwood are examples of wealthy individuals who do not hesitate to use coupons. More surprisingly, 71% of the affluent use paper coupons while another 54% are searching for online coupons.
They Live Below Their Means
Wealthy people have been acknowledged for living well below their means. They do not hesitate to cut their own hair to forego the money they would spend at the barbershop. A luxury vehicle is not a status symbol for them. Why? They are aware that a car just serves a single purpose: commuting from point A to point B.
For instance, the founder of Walmart, Sam Walton, drives around using a 1979 Ford pickup. Walton’s son, Jim used an even older model in the form of the Dodge Dakota despite having a net worth of over $16 billion. Mark Zuckerberg drives around in a modest $30,000 Acura TSX and T entry-level sedan. Warren Buffet, who is the third richest person throughout the world recently sold his 2006 Cadillac for a new model. These examples will give you an insight into the frugal lifestyles of the wealthiest.
They are Charitable
Leading frugal lifestyles that not mean that the rich stay away from charity. They are willing to donate a major portion of their wealth to charitable organizations. For instance, Bill Gates and Mark Zuckerberg are involved in charities, which proofs that these people are more than happy to make the donations. Prosperous individuals such as Warren Buffet, George Soros, Michael Bloomberg have all donated significant portions of the funds they accumulated.
Quality over Quantity Is Their Motto
Wealthy people cannot be considered cheap, and they are definitely not against enjoying themselves. However, they are prepared to consider their purchases appropriately. They prefer not to consider themselves as shoppers. Rather, they just invest in products that deliver their desired kind of qualities.
Flashing Their Cash around Is Not A Habit with Them
Studies reveal that around 86% of people who spend money on luxuries (expensive cars and jewelry, etc.) are often the people who do not own the millions. Rather, they are just making an attempt to show off by purchasing luxury brands. Wealthy people do not like to flash their cash around. Instead, they usually stay away from any credit. Also, they are vigilant with their money to ensure they have enough for themselves.
Going by this discussion, it is clear that the wealthy are interested in becoming spendthrifts.