Making money secrets from the worlds richest
Frugality – The way of life for the world’s richest
Don’t let the Rich Kids of Instagram fool you. The typical multimillionaire or billionaire doesn’t breakfast on caviar, bathe in champagne and use R100 notes as toilet roll. In fact, some of the world’s richest people live well below their means, opting for lifestyles that are anything but high maintenance and extravagant. We reveal their penny-pinching habits and the top money-saving tips we can glean from their frugal ways.
David Cheriton – University Professor/investor
The so-called ‘Billionaire Professor’, who cleaned up after investing a pile of cash in Google during its infancy, takes thriftiness to the extreme. Despite his $3.9 Billion (R51 Billion) net worth, the mega-rich Stanford University professor keeps an eye on every cent.
Cheriton still lives in the same period-style home he bought well before his Google shares soared in value and drives an average Honda car. The loaded academic even cuts his own hair and asks for doggy bags in upscale restaurants when there are leftovers on his plate. His rule of thumb is to “never spend in a way that I can’t explain to my parents without apology or embarrassment.”
Mark Zuckerberg – CEO of Facebook
The Facebook founder might boast a bank balance of $54.9 Billion (R709 Billion), but his spending habits show he still hasn’t forgotten completely about his humble student days.
For starters, his wardrobe is remarkably similar to many students – apparently consisting of little more than old T-shirts and hoodies. He has also shunned upmarket cars, instead driving around in a Honda Accord, which he reportedly describes as “safe and not ostentatious”. In another frugal move, he and his wife got married in the backyard of their Palo Alto home.
Michael Bloomberg – Media Magnate
Media magnate and former New York City mayor Michael Bloomberg didn’t amass his $44.8 Billion (R588.4 Billion) fortune by splashing the cash around. Known for his frugality, records show Bloomberg paid himself a paltry annual salary of between $5,000 and $20,000 (R65 000 – R263 000) during the late 1990s.
If you own a business, paying yourself a small salary and topping it up with dividends should reduce your tax bill. Bloomberg also saves cash by streamlining his business wardrobe. For the last decade, the penny-wise billionaire has owned just two pairs of work shoes and simply gets them resoled when they wear out.
Sergey Brin – Google co-founder
Next on the list is Sergey Brin, the Google co-founder who is now president of parent company Alphabet. In 2015 Google was praised by investors for becoming far more cost-conscious – quite a change given the company’s reputation for splashing cash on all sorts of zany initiatives.
That’s a belief shared by Brin, who told Moment Magazine how he learned to “be happy without many things” from his parents. “It’s interesting – I still find myself not wanting to leave anything on the plate uneaten. I still look at prices,” he said. “I try to force myself to do this less, not to be so frugal. But I was raised being happy with not so much.” That being said, he does reportedly own more than one private jet.
Warren Buffet – CEO of Berkshire Hathaway
Now worth a staggering $73.5 Billion (R965 Billion), CEO of Berkshire Hathaway and investor extraordinaire Warren Buffett is famed for his thrifty ways. The fabled Oracle of Omaha, who once said he was working his way up to cheap, is as frugal as they come, both in his business and personal life.
The second richest person in the world is always on the lookout for a bargain. “Whether we’re talking about socks or stocks, I like buying quality merchandise when it is marked down,” he says. The leading investor still lives in the modest home he bought for $31,500 (R414 000) back in 1958, drives a practical Cadillac XTS and eschews the high life. As Buffett is well aware, small sums compound, so he invests every spare cent he can muster.
Jack Ma – Founder of Alibaba
Jack Ma became something of a celebrity in China after his online retailer, Alibaba, set a record as the world’s biggest public stock offering when it floated on the New York Stock Exchange in 2014.
Yet despite being worth $28.3 Billion (R371.7 Billion), his spending habits remained largely unchanged. Speaking to USA Today, Ma’s friend Chen said the entrepreneur still enjoys quiet meditation in the mountains and playing poker with friends. “Ma Yun’s lifestyle is very simple and modest,” he said. “His hobbies are still tai chi and kung fu novels. I don’t think he has changed much, he is still that old style.”
Carlos Slim – Mexican telecoms tycoon
Mexican telecoms tycoon Carlos Slim is worth $50 Billion (R657 Billion) but this huge fortune hasn’t stopped him pinching the pennies. Always prepared to negotiate, Slim is all about getting the lowest price possible for anything he purchases, no matter how small or insignificant.
By way of example, during a vacation in Venice, Slim reportedly spent hours haggling with the owner of a fairly run-of-the-mill boutique in an attempt to get the price down on a silk tie by just 10 per cent (%) – the man clearly drives a very hard bargain and does not back down.
Zong Qinghou – Chinese entrepreneur
One of China’s richest people, Zong Qinghou isn’t averse to roughing it out. Boasting a personal fortune of $7.2 Billion (R92 Billion), Quinghou hardly needs to economise. Yet the beverage billionaire has been praised for his humble, ultra-frugal lifestyle.
Quinghou wears cheap bargain-basement clothing, dines on budget-friendly meals and has been known to travel economy on occasion. In fact, according to reports, the cost-conscious drinks tycoon lives on just $7,300 (R96 000) a year – no wonder he is so flush with money.
Source: MSN Money