Monday, November 7, 2011

How the Frugal Wealthy Live

The world's frugal billionaires live well below their means and save money in surprising places. Here's their tips:

1. Keep Your Home Simple
Billionaires can afford to live in the most exclusive mansions imaginable -- yet frugal billionaires like Warren Buffett choose to keep it simple. Buffett still lives in the five-bedroom house in Omaha that he purchased in 1957 for $31,500.

2. Use Self-Powered or Public Transportation
Thrifty billionaires including John Caudwell, David Cheriton and Chuck Feeney prefer to walk, bike or use public transportation when getting around town.

3. Buy Your Clothes off the Rack
While some people, regardless of their net value, place a huge emphasis on wearing designer clothes and shoes, frugal billionaires decide it's simply not worth the effort, or expense.

4. Keep Your Scissors Sharp
Cut your own hair at home. Save an average of $40 per person per cut.

5. Drive a Regular Car
The idea is to buy a dependable car, and drive it into the ground. No need for a different car each day of the week for these frugal billionaires.

6. Skip Luxury Items
Carlos Slim (who could spend more than a thousand dollars a minute and not run out of money for one hundred years) does not own a yacht or a plane. (Reducing the amount you spend is the easiest way to make your money grow.)

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