We like to point out to the boys all the time the people that are rich and famous but yet living frugal lifestyles. Our boys like to put these youtubers to Tik Tok kids up on a pedestal because they drive fancy cars and live in these big houses. They watch videos of these people throwing money away to friends and family like its water. We try to bring up to them what would happen to these people if it is real life if You Tube or Tik Tok would quit paying them.
I tell the boys there is nothing wrong with living frugal and not wasting their money. There are so many people that have Millions of dollars that don’t look like it. They don’t have fancy cars, they don’t take fancy trips, they don’t wear Rolex watches, they were simple clothes and live-in simple houses.
Some people want to dream higher than a Millionaire to a Billionaire and they want to live like a Billionaire before they put in the work and became a Billionaire.
I feel most Billionaire know how to live frugal and most probably did before their business took off. Some kept some of those habits even after becoming a billionaire.
As always, I am not giving you any Financial Advice and you should seek advice from your Professional Advisors to see what is best for your situation. See my Disclaimer at MillsWay.com. This is for entertainment only.
For instance, let’s talk about some Billionaires and their frugal habits and pasts.
- Warren Buffet. He lives in the same house he bought in 1958. The house isn’t a big mansion either. He eats at McDonalds most days. I heard he gives his friends personal notes and gestures versus expensive gifts. A quote I like of his is “The first rule of Investing is don’t lose money. The second rule is don’t forget rule number one.” I have heard of him driving used vehicles and holding on to them for years. His hobbies are even frugal, I heard he likes to play the card game called Bridge. A game I have never played before.
- Steve Jobs from Apple. When he was alive was known for wearing simple clothes. He wore jeans and a black turtle neck a lot of times.
- Jeff Bezos of Amazon even after he was rich drove a Honda. He is like a lot of entrepreneurs in that he would rather Invest in their business versus wasteful things that go down in value.
- Mark Zuckerberg the CEO of Facebook wears simple clothes a lot and I heard drove a truck over ten years old to a manual Volkswagen hatchback even though he was rich.
- Elon Musk the founder of many successful companies is famous also for his $12 a day food budget or $30 for a month. He ate hotdogs, oranges, pasta and tomato sauce to show himself he didn’t need a substantial salary to survive. In 2020 he said he was selling off most of his possessions and would own no house. He decided possessions only weighed you down. So true in many ways. Myself I like owning a home debt free for us it gives us some security.
There are many more stories of Rich Entrepreneurs to Actors that live below there means. They live frugal and you may not recognize them in public. But they have it figured out on how to invest in their futures and not the present junk that so many people do.
Look at how many Sports figures from the NFL, NBA to MLB is broke within years of retirement. I played golf with a former basketball NBA player. I forgot his name but he kept getting calls during the golf round. He complained that relatives to friends kept wanting money to help with there bills. He got upset on one call and said I don’t work anymore so how long do you think I can keep paying out.
How do you live? Do you live Frugal? Social media like Tik Tok show our boys some people in their twenties driving fancy cars and living in big houses yet billionaires drive simple used cars and Elon Musk doesn’t even want to own a house and he is one of the riches people in the world. Think about how Warren Buffet eats at McDonalds almost daily over eating out at fancy restaurants.
Darlene and myself would love to live like Money was never going to run out. We would love a huge house, new cars each year and fancy trips. Let’s not forget my new Golf Clubs each year also. LOL But we both are moderate frugal in many ways and we know that things can change in the future so we want to have investments in case things take a turn down.
A former boss of mine had a great attitude about Investments and money. He wasn’t afraid of losing money on a business because he always felt he could earn it back. He once lost a million dollars on a business and he said it was just on paper and he would get it back. His next business he started did that and more. Yet he lived in a simple house out in the country and drove used vehicles. You would never know that he was worth millions.
I golf regularly with a guy who has I would guess over ten million dollars but yet lives in a small house. Wears old clothes. Doesn’t have fancy PXG golf clubs. Drives a used vehicle. Doesn’t take fancy trips. What are you teaching your kids? We are trying to teach them to live Debt Free, invest their money and live below means.
Here are some ways that we try live frugal but by no means at the Elon Musk level.
- We buy used vehicles. We have 2017 Van with 83,000 miles on it and a 2007 Car with 152,000 miles on it. We may keep the car till I die because we don’t drive it too much each year.
- We try to only eat out once a month.
- We used to do one time a month with the boys to a movie. Now with COVID-19 we haven’t been to a movie for over a year.
- We have a budget for gift giving and all other items that we try to follow.
- We drive on Vacations as much as we can instead of Air Fares for four.
- We normally Vacation in Minnesota with and stay with family. So, no hotel costs and very little eating out.
- When we travel, we normally drive 26 hours straight thru so no Hotel expense. We also pack a cooler and snacks to save on buying food along the way.
- We buy little clothes during the year. If we do it is at a Mass Merchant or a hot Kohls ad.
- Grocery store we buy a lot of name brand items and ad items to save money.
- We live debt free.
- We paid cash for our house and bought a simple one. It is just enough room for our family. We had the money to go big but we wanted to retire early.
Those are just a few ways that we live below our means. What ways do you live Frugal? Some people say being Frugal is bad and being cheap. I say it is being Smart and Financially Responsible. Those people that make fun of me are still working when I am retired.
We live far from as Frugal as we could. We try to teach the boys how we lived when out on our own and how tight money was. How we worked normally two jobs each to get a head. They probably won’t truly get it until they are out on their own and start paying all their own expenses.
If Social Security isn’t around in 15 years, we may get really Frugal to get by but by then we hope both boys are out on their own. Then if we need too, we could always rent out their rooms for extra money if Social Security was not around.
We want to give our boys the best chance to have their money last them thru their retirement years and have them reach their Financial Freedom goals. They need to live somewhat with a frugal mindset and spend less than they make so they can Invest towards their Financial Freedom goals.
Here are some positive quotes I like;
“Get your Money to Work for You… As hard as You Work for it.” By Napoleon Hill
“1. Make Money. 2. Use the Money to Make More Money. 3. Repeat the Process.” By Warren Buffett
“There is no way to happiness; happiness is the Path.” By Buddha
“Change Your Thoughts – Change Your Life” by Wayne W. Dyer
Let me know your thoughts about this blog and let me know of others you would like me to do in the future. I feel we can all learn from each other. That is why I am in the helping people retire early, enjoy life more and be more successful. Also, please see my Disclaimer page.
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