If you are one of those people who never have money, then this post is a perfect fit for you. Frugal life is not devoid of fun but is a life featuring wise expenditure. When we think of billionaires, we think of flashy lives characterized by extravagant spending.
It does not cross our minds that there are some who are not spendthrift and live a common life unexpected of them. They base their lives on simple virtues and attitude that guide them and determine their spending habits. Furthermore, these virtues determine frugal billionaires’ lifestyles.
Bonus: Read our article on how good habits can help maintaining perfect credit score.
Economical and Thoughtful Spending
The everyday life of a frugal billionaire is most characterized by thoughtful spending. One reason billionaire got the point they are is their ability to assess opportunities and act on them wisely. Thrifty billionaires evaluate their options before spending money.
They make sure that when they are spending they will earn profit in return. Prudent investment puts their money at work for them and makes them even wealthier. Most frugal billionaires’ invest in things like talent, gift or special knowledge because they are concrete assets that they cannot lose easily.
Another common habit that you’ll realize in frugal billionaires’ lives is their modest purchases. It’s surprising to fathom but frugal billionaires live in simple homes that cost little than what they can afford and falls below their expected standards. A modest and affordable home enables these wealthy people to free up extra money. The extra money is used to make more money or support other needy projects. For some of them, they don’t see the need to live in million-dollar homes.
Philanthropy is another notable characteristic of frugal billionaires. With all the money they have, they do not keep it to themselves. Frugal billionaires contribute to projects and support needy causes. They donate clothes to goodwill, food to the hungry and medicine to hospitals without enough supplies. The philanthropy culture brings some sense of fulfillment to frugal billionaires.
Credit can be beneficial if used exceptionally well. However, getting used to credit can derail your financial stability. Frugal billionaires use credit less often. In fact, some of them refrain themselves from using credit at all. These group of wealthy individuals prefer using debit cards to credit cards.
Debit cards allow them to spend money that they have compared to credit cards that allow them to make purchases based on debt. Furthermore, using less credit improves their credit scores solidifying their financial stability. But what do average people do? They empty their credit cards and then they look for a personal loan without credit check online.
Frugal billionaires can spend a thousand dollars every minute and not become bankrupt for the next century or so. However, they do not dwell on luxuries as one may think.
Their spending cuts down on luxuries and other expensive stuff. They buy luxuries but to a certain limit. Surprisingly enough, some frugal billionaires like Warren Buffet don’t own a yacht.
Instead of buying luxuries, frugal billionaires prefer to invest that extra money and earn more money. Also, read what 5 phrases a rich person will never say.
A frugal lifestyle comes naturally to most billionaires because of their humble beginnings. One thing that you can borrow from their habits is their way of spending that enables them to balance finances