Want to Live Like a Billionaire? Start by Following Their Frugality

The first thing most of us assume we could learn from billionaires is how to make more money, not how to save more money. But the fact is many billionaires are quite frugal, a habit developed by years of pinching their spending in order to put as much money as possible into investments. From affordable rental lease housing to driving their unpretentious cars until they die, billionaires have some frugality lessons that the rest of us could stand to learn.

1. Avoid Driving
Walking, biking, or taking public transportation is a great way to save money, burn calories, and reduce your carbon footprint. Billionaires can afford to have a private helicopter deliver them anywhere they wish on a moment’s notice, but most don’t, recognizing that in a busy day, walking or biking to their destination may be their only opportunity to exercise, so they do it and enjoy every minute.

2. Homemade Haircuts
The average haircut costs $45, and of course many high-end salons charge much more (up to $800). In a year, this adds up to at least several hundred dollars, and often several thousand dollars for poshier haircuts. Spouses, girlfriends, boyfriends, roommates, and friends can often provide a haircut just as sexy, without the need to step into a hair salon that pampers you into thinking your $100 cut was worth it for the free cup of coffee and shampooing.

3. Affordable Real Estate
To begin with, many billionaires don’t live in sprawling mansions or plantations, choosing instead a humble, average home in a neighborhood with friendly neighbors, good schools, and a sense of community. They don’t have anything to prove, so many recognize that their quality of life is better in a friendly, cooperative community. Additionally, while middle class Americans largely own their own homes, the wealthy often choose rental lease properties instead, for their flexibility, low risk, and minimal maintenance.

4. Average Cars
Jay Leno aside, most wealthy Americans don’t collect rare and expensive cars. Many instead opt for a Toyota or Acura, which can be parked anywhere without drawing attention (or vandalism or theft), and can be driving for ten years or more. Additionally, many billionaires sign a rental lease on the car instead of buying if they only plan to drive it for a year or two.

5. Don’t Bother with Designer Clothes
Designer clothes are extremely expensive, and quickly go out of style, requiring you to buy a new set of clothes regularly. Many billionaires don’t have the time or interest in trying to look like fashionistas, so they buy normal clothes. What’s more, many billionaires have long ago abandoned the feeling that they have to impress anyone with their clothes, so they wear jeans and a sweater, and focus their attention elsewhere.

6. Get Over the Luxury Trappings
While many billionaires go through a playground phase where they spend a lot of money on toys like yachts and jets, most get over it pretty quickly, and stop wasting time and money on them. Warren Buffett is quoted as saying “Most toys are just a pain in the neck.”

If the richest people in the world don’t need to blow money on unnecessary luxuries and status symbols, why should you? Billionaires could spend in twenty minutes what a minimum wage earner makes in a year, yet most don’t. If you want to learn to live like a billionaire, start by forgetting about the gated mansion listed for $10 million, and signing a rental lease for $1,800 on that warm house in the friendly neighborhood, with the kids next door the same ages as yours.