There are some billionaire spending habits that are downright even more frugal than the average Joe. That’s what’s surprising about it. Billionaires will generally not spend any more money than they have to. They will try to haggle a price down to the minimum before paying it.
Yes, some do spend on extravagant things like a yacht, private yet, and mansions. However, there’s a good chance they tried to spend the least amount of money on those luxury goods. And on top of that, the rich enjoy tax breaks from buying those luxury goods.
It’s one tactic the states use to encourage billionaires to spend their money. There are multiple examples of billionaires being even cheaper than the average person in order to save a few extra dollars. I compiled the most noteworthy cases below.
We all know billionaires make an obscene amount of money, whether it’s from their investments, businesses, and the like. However, no one focuses on their spending habits as much as the billionaires themselves. So it’s important o learn the habits of what they do to employ to get to where they are.
After all, can it really hurt if we copy and emulate the billionaire spending habits? If we act like they act, how can it be a bad thing? I try to learn from as many people as I can through watching their behaviors and habits. So it just may not be a bad idea to learn from people who achieved success.
What Are Billionaire Spending Habits?
Billionaire spending habits are spending habits specifically from the top 0.01% of society. Not from the top 1% of society. But from the top 0.01% of society. Personal finance is mostly behavioral and not driven by intelligence.
Therefore, their behaviors and habits are more important in understanding how they protect and keep their money safe. There are many stories of billionaires who eventually went broke. Eike Batistia is one prominent example who was on track to become the world’s richest person.
Then his investments tanked and he eventually lost everything. It’s one thing to get to the top, it’s another thing to stay there. The ones who went broke didn’t get there because of their income. They went broke because they spent too much money.
Money went out more than the money that came in, consistently over time. That’s what’s ruined their fortunes and empires. It’s important to emulate and observe the behaviors of the ones who’ve remained a billionaire decades after decades.
If billionaires aren’t too proud to use the billionaire spending habits list in order to save money, then we shouldn’t be too proud either. There’s nothing wrong with saving a dollar here and there. Even if you have FU money, there’s always a way to trim the fat and get you even more money.
8 Billionaire Spending Habits
One important billionaire spending habit is to SMASH that social share button and post to your favorite social media! Your friends just might need an article like this in order to curb their spending. We can all help each other to be better with our finances!
So with that said let’s go over the spending habits from the wealthiest 0.01%.
1) Haggling
Carlos Slim once haggled a store owner for several hours to get $10 off a tie. A multi-billionaire who easily could’ve earned more money just paying the extra $10. Billionaires are not afraid to haggle even for a minuscule amount as long as it’s the right thing to do.
There are some people who will scoff and make fun of others for trying to save $10. It’s not about pride for billionaires. They don’t care what others think of them, they just do what’s in their best interest to do so. Billionaire spending habits include haggling over what’s right.
They don’t back down on principle. It’s a good idea to back down when principle warrants it but it’s not a good idea to back down when principle doesn’t warrant it. That’s how they go about their spending lives. Minimizing expenses in any way possible is not a bad choice.
2) Simplicity
The materials people own are very simple. Mark Zuckerberg famously wears the same clothes to go to work. That keeps his spending very simple, because it eliminates one decision he has to make in order to move about his day to day life. It’s a hassle to think about what to wear every day.
Billionaire spending habits include simplicity with their spending. Routines and schedules may not be an exciting or spontaneous way to live. But it eliminates having to make decisions on the frivolous aspects of their lives so that they can focus on things that are more impactful.
Simplicity is one of the most underrated aspects of life. At that point, it’s not even about trying to save money to be simple. It’s about lessening the headaches they have to go through while going about their everyday lives. Simple is better than complex.
3) Frugality is a Good Thing
Jeff Bezos drove a 1997 Honda for the longest time even after becoming a billionaire due to Amazon.com. In the early days, he emphasized extreme frugality upon his employees. He didn’t want to spend money on anything that the customers didn’t care about.
He only wanted to spend money on that’s going to bring him a good ROI. Nowadays, he’s been going on a spending spree for his personal life as well as well as business life. However, he only started doing so after he made it. The frugality mindset is a lesson for the everyday person to follow.
There’s no need to spend more than what’s necessary. It’s not good to be cheap but it is great to be frugal. Billionaire spending habits include frugality that bring them the most success and return on their money later down the road.
4) They Look at the Long Term
If the decision doesn’t benefit them in 10 years, they don’t care about it. Jeff Bezos heavily emphasized the long term vision in his shareholder letters when he first started Amazon.com. Even when the business was hemorrhaging and losing money hand over fist.
Billionaires don’t spend money on things they know are not going to bring them a long term ROI. There’s no point at all whatsoever. Quality matters more to them than quantity. What’s the point of buying a $10 item if it’s going to break tomorrow? They’d rather spend $100 and have it last a decade.
Than buy it for $10 and have it last a day. Billionaire spending habits include looking at purchases over the long term and adjusting accordingly. Otherwise, there’s no point. Buying quality cars that last 20 years is more common these days. There’s no need to get a luxury car anymore.
5) Avoiding Spotlight
Herbert Wertheim is an unknown billionaire that very few knows about. His investing prowess is much like Warren Buffet and he’s achieved WILD success due to his behavioral characteristics. He doesn’t need to get on the spot light. He doesn’t need to spend money getting media time.
Billionaire spending habits include practicing stealth wealth. There’s no point in getting in front of the spotlight, even if it makes them more money. They already have enough, what’s the point of getting more? There’s nothing wrong with staying low key and private.
It’s quite difficult to manage the public’s perceptions of you. Exhausting, in fact. When you already have all the money in the world, you just need to stay low key and spend your time with the people you love and the people you love passing time with. Anyone else is a waste of time.
6) They do it Themselves
John Caudwell cuts his own hair. Whenever billionaires can do it themselves, they do themselves. There’s no need to hire someone else to do it when they already know how to do it themselves. I love DIY projects. Not only do you get to learn something, you save money.
When I first moved to Austin, the internet company wanted to charge me $50 for “WiFi installation”. What?! Are you kidding me?! All you have to do to “install WiFi” is to plug in a couple of things. That’s it. They wanted $50 for that. I did everything myself.
Do it yourself projects are awesome. Billionaires do things themselves whenever they can because independence is a far better way to live than in a dependent way. Billionaire spending habits are all about independence. It feels much more satisfying that way.
7) They’re Not Afraid to Penny Pinch
When they need to, they will penny pinch. Jeff Bezos famously told employees to penny pinch while at Amazon. Some billionaires brown bag their own lunch. IKEA founder famously eats at IKEA’s cafeteria. Aside from the fact that the cafeteria serves delicious food, it’s not that expensive to eat at IKEA’s cafeteria.
The decadent Swedish meatballs really hits the spot. Even if billionaires have everything, billionaire spending habits is spending like they have nothing. Penny pinching is great because oftentimes it eliminates waste and cuts down on unnecessary things.
I often don’t turn on the AC at my apartment not because I can’t afford it but because I don’t need to. The temperate at my apartment is perfect just by itself. When I feel like it’s too cool or too hot, I go ahead and turn on the AC. Penny pinching is good for your wallet and the environment.
8) Lavish Goods Don’t Tell the Whole Story
Lavish goods like mansions, private jets, and the like account for something like less than 1% of their net worth. The media reports the billionaire spending habits like this is something to be extravagant about. It’s like someone worth $100,000 spending $1,000.
People can easily spend $1,000 just on monthly rent, alone. Lavish goods just don’t tell the whole story. The media stories of billionaires buying 10,000 sq. ft. mansions just aren’t as extravagant as the media likes to highlight it is. It’s a tiny fraction of their fortune.
On top of that, they get generous tax breaks.
Billionaires don’t spend a billion dollars. It just doesn’t work like that. They wouldn’t stay a billionaire if that is the case. The ultra-wealthy actually admitted that they wouldn’t be able to spend all the money in their lifetimes, if they wanted to. Be wary of the rich buying lavish things.
Billionaire Spending Habits are Good to Imitate
If you want to get rich, there’s nothing wrong with copying the billionaire spending habits. They got there because they know what to do with money. Very few billionaires became billionaires because they got an inheritance. They became one because of their own hard work.
There’s nothing wrong with haggling with the store owner if you’re going to get clothes off the rack. There’s nothing wrong with bringing your own lunch to work. That $5/day that you save is going to add up over years and years of doing so.
Of course, after a year or two of doing so, you may get tired and go back to just buying food. However, it’s not a bad idea to start doing so at the beginning. That’s how I got my start. I would make chicken every single day and bring to work.
Not only would it be great for my wallet, I learned how to cook as a result as well. It was great. These days, I’ve cooked less meals to bring to the office. However, there’s nothing wrong with cooking in order to save money, eliminate waste, and learn cooking all at the same time.
I’ve employed the ideas highlighted in this billionaire spending habit list. The next conquest I want to conquer is to cut my own hair. One day, I’ll have enough time to pursue that project for myself. There are many opportunities for you to cut the fat and save money.
8 Billionaire Spending Habits: Shortlist
- Haggling
- Simplicity
- Frugality is a good thing
- They look at the long term
- Avoiding spotlight
- They do it themselves
- They’re not afraid to penny pinch
- Lavish goods don’t tell the whole story
I have several billionaire friends due to past work relationships. My favorite one died a few years ago. He owned the company I worked for. He drove a pickup truck and loved to eat at the Golden Corral, an inexpensive family buffet restaurant. He was down to earth, honest and compassionate. And he never wasted money. He only bought bargains. Great post!
Thank you Steve!!! I’m sorry I haven’t gotten back to your early comments, I didn’t know how hard growing a blog could be 😭 but it really does not go unnoticed and I appreciate everything.
Billionaires stay billionaires because they do not spend a lot of money! Inexpensive is music to their ears!