How Does Frugality Work When You're Rich? (price, best, value)
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How do you adopt a frugal lifestyle when you're rich? Say like a pro athlete.
I think almost everyone tends to spend more as they earn more. So frugality is a relative thing. If you earn $1M a year after tax but only spend $100,000, then you're being very frugal on a relative basis while still living a better than average lifestyle.
Being frugal is not a rich/poor thing.. its a common sense thing.
Show me a rich pro athlete who is not frugal and i will show you a soon to be NOT RICH former pro athlete.
IMO, being frugal is simply living below you means.. some folks have higher means than others but in order to stay at that high level, they have to be frugal...
The bolded is so true. Something like 80% of NFL players are broke or bankrupt within 5 years of retiring from the NFL.
Rich, or very wealthy people like Mr. Warren Buffett live frugally.
He keeps his car, albeit a Cadillac, for 8-10 years, or until his daughter tells him its time for a new one.
He buys his breakfast at the same McDonald's, a bargain breakfast costing just over $2or 3 a day on the way to work, his wife gives him the money.
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He lives in the same first house he ever bought, and never bought another one. He says a mansion in Malibu would not make him any more comfortable than his current house
He drinks Coke regularly.
He has NEVER spent money on a computer. He doesn't have one.
He owns stock in McDonald's, GM, Coke and Microsoft, among others.
And yet the man is worth BILLIONS of dollars.
His stock at Berkshire Hathaway is way over $100,000 a share!
When it comes to select companies, Mr. B IS BUYING, but when it comes to personal things, hes NOT BUYING.
i do try to emulate him, though im not as successful. Lol
The stuff about Warren Buffet's frugality is exaggerated by the media. The truth is, Buffet owned a 2nd beach house in Laguna Beach for many years. That doesn't get as much media attention, because it ruins the "frugal billionaire" image they like to create.
The stuff about Warren Buffet's frugality is exaggerated by the media. The truth is, Buffet owned a 2nd beach house in Laguna Beach for many years. That doesn't get as much media attention, because it ruins the "frugal billionaire" image they like to create.
Seriously, he was born into money, the son of a US Congressman, went to Ivy League schools, and lives in a nearly 7000 square foot home. He also had a place in Laguna beach that he sold last year. He drinks Coca Cola...What's he supposed to drink? Unicorn Milk? He doesn't drive much at all, but he does fly private when he travels.
He's 88...And in charge of a very large company. He supposedly doesn't have a computer at his desk but he also has people that handle those tasks for him. I think he does actually own a computer. And, has CEO, he never had to learn how to operate a computer since he's been at the top of a growing business from the get-go, growing from little to big, rather than starting at the bottom and working his way up. I know that the CEO of my company often has his secretary respond to emails. He reportedly has an old Nokia flip phone...But so did my Grandfather at 88.
Warren Buffet is a billionaire because he's an amazing investor, and his ability to focus on his most important goals. His "frugality" has little to do with it.
People get this idea of CEO's and the Wealthy doing all sorts of things that aren't accessible to the rest of us...But most of them scratch one or two itches that aren't accessible to the 98%, not every itch not accessible to most people.
he is also only 1 guy and people like to use him to generalize for every rich person.
id like to know how much he actually spends on an annual basis. i feel like its probably more than people think. not that it matters. im not even sure if its admirable that a billionaire would spend very little. why is that a good thing?
in my experience, a housing upgrade has been the biggest cause of an increase in my spending. here you have my monthly spend from when i started tracking in mint at the end of 2011. i was able to keep things pretty consistent in spite of increased income. buy a new house at the end of 2016, bam skyrockets. i still have some big months ahead but the blue line is where i expect to settle if i ever have months without housing upgrades/renovations.
How do you adopt a frugal lifestyle when you're rich? Say like a pro athlete.
People do it; there are stories of people dying with millions, and leaving their fortune to the local church or charity of choice, whatever. And neighbors or relatives say the guy always lived so frugally, they never imagined he was a multi-millionaire.
I think this tended to happen more with people who had grown up during the Depression. There aren't many of those left, but frugality becomes a lifelong habit, when you're struggled through something that major. A few people, I suspect, are OCD about frugality, even though they don't need to be concerned. A sports figure wouldn't have to be frugal, but could choose to be, I suppose. But why? What would be the point? Why not live "comfortably", without going overboard, spending heedlessly. Maybe moderation to someone like that, would be the equivalent of frugality, for some of the rest of us.
Ha...A high school teammate played in the NFL. His comment was "You meet every kind of girl you ever want to date, but not really the girls you should be dating." Its extremely important to make sure you don't involve yourself or reproduce with those that are going to cause you trouble down the line. That's true for everyone, but Joe Schmo doesn't typically have potential partners lining up at his door.
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