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Money Minute
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Frugal Habits of the Rich
Money Minute
Consider choices made by the rich to hold onto their wealth.

You might assume they would spend freely, but in many cases they’re very aware and very careful of every dollar they spend.

Consider Queen Elizabeth II. She’s royalty and it’s estimated that her net worth is at $530 million. She may live in a 775-room palace, but she’s smart about managing heating expenses. Indeed, Her Majesty is known to use space heaters in both Buckingham Palace as well as her weekend home castle. If she’s pinching pennies to heat her homes, we can too.

Then there’s Warren Buffett. He’s one of the greatest investors of our time and worth over $87 billion dollars, yet he still lives in the same house he bought in 1958. And it’s not mega-mansion, it’s a modest 5 bedroom house that he purchased for $31,500. Clearly, he knows to live well within his means.

And finally, let’s consider the wheels of the rich. Of those who earn $250,000 or more, 61% don’t buy luxury car brands — they’re choosing the same basic cars as the rest of us. But what about the remaining 39% who do choose luxury cars – what are they buying? Forbes looked at the top 10 cars these people are buying and yes, the first 4 spots are taken by cars made by Mercedes, Lexus and BMW. But what’s more interesting is the remaining 6 top cars the rich buy are from Honda, Toyota, Acura and Volkswagen.

When you think about it, it makes some sense – after working hard, if you are fortunate enough to become a millionaire, the last thing you’d want to do is to blow it all on frivolous purchases.

It’s no secret – if you’re lucky enough to have some wealth, the key to keeping it that wealth is simple. Don’t overspend and live modestly.

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