5 Frugal Habits of Bill Gates To Apply To Your Own Spending
Bill Gates is just your average working Joe who loves dollar-menu cheeseburgers and affordable wristwatches. You wouldn’t think his business would be this casual when packing an estimated net worth of around $110 billion, but it turns out one of the key ingredients in building extreme generational wealth is always thinking about value.
Adopting frugal habits is not about denying yourself life's pleasures, but about making smart financial decisions. This is a state of mind that keeps you in check, no matter how many zeros are in your account. Here are five ways Gates has practiced frugality for decades.
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1. He Waited Until He Could Truly Afford It to Splurge
Despite his wealth, Gates is known to be mindful of spending and often emphasizes the importance of being financially responsible. According to him, he waited until Microsoft was well-established before splurging on a Porsche. This shows that Gates thinks before he spends and appreciates the hard work that goes into earning money, or in his case, amassing a fortune estimated to be worth around $110 billion.
2. He Loves Eating (and Spending Less on) Fast Food
Gates is genuinely fond of cheeseburgers and Diet Coke, which are the same classic fast food staples he's been eating for years. No truffle-infused tasting menus, no $300 lunches when a $10 combo does the job.
In fact, he once went to McDonald's in Hong Kong with Warren Buffett, who paid with coupons, and Gates found it completely amusing rather than embarrassing, as reported by Yahoo! Finance. The lesson you can take from this is perhaps that expensive taste is a habit, not a requirement.
3. He Keeps His Wardrobe Simple
Channeling his old rival Steve Jobs, Gates tends to wear a basic V-neck sweater along with a collared shirt, as he doesn't seem to place much importance on clothing or jewelry. In fact, he has been known to wear a simple $10 wristwatch. Gates believes that material possessions do not define happiness and he prefers to allocate his resources to more meaningful endeavors.
4. He Treats Giving as Part of His Financial Plan
One of the hallmarks of Gates' frugality is his commitment to philanthropy. In his personal blog GatesNotes, he wrote, “The ‘golden rule’ precept is more important now than ever with the record disparities in wealth.
This idea of treating others as you wish to be treated does not just apply to rich countries giving aid. It must also include philanthropy from the wealthy to help those in need—both domestically and globally—which should grow rapidly in a world with a record number of billionaires and even centibillionaires.”
5. He Is a Meticulous Budgeter and Planner
Gates is known for his meticulous planning and budgeting, which played a significant role in the financial stability and growth of Microsoft. For example, he breaks his day into five-minute intervals and applies the same discipline to his finances as to his schedule.
When it comes to Gates frugality, budgeting is more about intention than restriction.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.