Save Money and Make Money Like A Frugal Millionaire

The Frugal Habits of Millionaires

Nobody ever got rich by wasting money

 

If you want to be rich, act frugal - this is the advice that author Thomas J. Stanley, Ph.D. of best-selling book, "The Millionaire Next Door” wants his readers to heed.

At first glance, “frugal” and “millionaire” seem like two words that hardly belong in the same sentence together. When we think of millionaires, it always conjures up images of lavish jet-setting lifestyles and frivolous spending. But the truth is, it is not always the case, as there are actually a lot of moneyed individuals out there who despite having millions or even billions to their name, still choose to live a downright frugal lifestyle.

With even that much money to burn, these frugal millionaires opt to save money and invest for even more. They are still living a relatively modest life, walking among us as normal, run-off-the-mill people just like you and me. When you think about it, it makes a lot of sense because building up your storehouse of cash entails living well below your means and offsetting consumptive ways. This kind of frugal mindset could very well be the reason they are millionaires in the first place.  

 

Get inspired by these millionaires' examples on frugality

 

4MICHAEL BLOOMBERG

Owes his millions to being: A business magnate, politician and self-made billionaire courtesy of  his namesake media company Bloomberg L.P.

Net Worth: $27 billion

SURPRISING FRUGAL ACTS:

  • Worn the same two pairs of shoes for the past decade, one penny loafers and the other, a tassled pair.  When they get worn down, they just have them resoled.
  • Only purchases the smallest size of regular coffee available.
  • When he filed for candidacy, he was only receiving a token salary between $5,000 and not more than $20,000 per year, equivalent to the lowest paid worker in his company.

  

2

INGVAR KAMPRAD

Owes his millions to being: The brainchild of IKEA, that wonderful rat maze of a store that takes all our money as we find our way to the exit

Net worth: $3.5 billion

SURPRISING FRUGAL ACTS:

  • Despite being well able to afford a private plane, he flies in economy class and preferably on a budget airline like the rest of us.
  • Still drops in in one of his stores for his favorite Swedish meatballs and swipes little packets of salt and pepper from cafeterias to take home.
  • Lives in a modest bungalow in Sweden and is said to assemble every piece of his IKEA furniture in  it himself.
  • Does his grocery shopping near closing time to take advantage of the end-of-day marked down prices.
  • Was once first refused entry for coming on a bus to a gala to receive his Businessman Of The Year Award.

 

6

MARK ZUCKERBER

Owes his millions to being: The reason behind everyone’s procrastination: Facebook, yep.

Net worth: $34.8 billion

SURPRISING FRUGAL ACTS:

  • Lives a low-key life and is famous for donning the same gray t-shirt and hoodie everyday.
  • Wed long-time girlfriend in his backyard and dined at McDonald’s in their Italian honeymoon.
  • Owns a $7M Palto Alto mansion which is a few minutes drive from Facebook’s office. The price may not be entirely considered frugal but considering he’s worth billions of dollars, the home is still valued well below his means.
  • Before upgrading himself to a manual Volkswagen Mk 6 GTI, he used to run around in an Acura TSX. Still a modest choice for a man who can very much afford a Bugatti.

 

3

ED SHEERAN

Owes his millions to being: Crooner Extraordinaire

Net Worth: $16 million

SURPRISING FRUGAL ACTS:

  • Despite his net worth, he chose to purchase a $1.4 million home near his parents in Suffolk England. While a 6-bedroom house with 3 acres of grounds is nothing to scoff at, it is nice to see a big star stay true to his roots.
  • Told in an interview that sports cars make him nervous and if he were to purchase his first car, it will be a  Mini Cooper.
    • Despite hitting it big time in the music world, he revealed that he lives on just £1,000 a month. Most of his money, he claims, goes to paying taxi fares.

 

8

AMANCIO ORTEGA

Owes his millions to being: Spanish Fast-fashion baron behind clothing chain Zara, as well as brands like Bershka, Pull & Bear, and Massimo Dutti

Net Worth: $71.5 billion

SURPRISING FRUGAL ACTS:

  • Can be seen sharing a table and eating lunch with his employees in the cafeteria.
  • Oddly enough for a man who built his fortune on fashion,  he keeps a simple dress code:  blue blazer, grey trousers and white t-shirt everyday, none of which are Zara.
  • The world’s second richest man just happens to drive an Audi 8.
  • Lives in a fairly modest apartment building in sunny Spain and buys his coffee from the same shop everyday.

7

WARREN BUFFETT

Owes his millions to being: A notoriously frugal CEO of Berkshire Hathaway

Net Worth: $72.3 billion

SURPRISING FRUGAL ACTS:

    • His small-town lifestyle has not changed much since before earning his billions. He has been residing in a home in Omaha, Nebraska that he bought in 1958 for $31,500.
    • Despite his net worth, he is a man of simple taste; loves McDonald's hamburgers and cherry Coke.
  • For a man who could well afford fleets of super fancy cars and chauffeurs, he owns a Cadillac TS and drives it himself.
  • When he married his second wife in 2006, rather than throwing a lavish wedding, it was a 15-minute low-key ceremony held at his daughter’s house in Nebraska.
  • The mogul does not own gadgets like computers and cellphones.

 

5

TYRA BANKS

Owes her millions to being: A supermodel, multimedia icon and queen of smizing

Net Worth: $90 million

SURPRISING FRUGAL ACTS:

  • Despite having millions that can buy her own beauty company, Tyra admits to taking miniature hotel shampoos and soaps.
  • The cheap beauty secret that she swears by: Vaseline. She admits rubbing the stuff under her eyes, and on laugh lines, lips and elbows every night.
  • Claims to have always been frugal, describing herself as a “penny pincher” even as a child. It wouldn’t come as a surprise that the woman knows a big deal about saving money and budgeting.

  

1

SHAILENE WOODLEY

Owes her millions to being: American actress known for her roles in Divergent and tearjerker, Fault in Her Stars

Net Worth: $82 million

SURPRISING FRUGAL ACTS:

  • Shailene is a devoted thrift store and vintage shop fan. Rather than hoarding couture, she admits only buying used clothes from trade-in stores and vintage shops.
  • Shops for food at a local farmer’s market and even packs her own food on the set.
  • Instead of fancy creams and potions, she prefers using only all-natural beauty products or DIY-ing her own.

 

 

Whether you are already close to earning your first million or yet a far goal to achieve, practicing frugality can only get you there sooner. These m(b)illionaires are the ones you want to learn from. We may not be sitting on massive fortunes like them but wasting money on discretionary expenses only leads us much further from being our own potential millionaires, or at least, in having some pennies saved for the rainy days.