6 Purchases Many Billionaires Refuse To Make (And Why You Should Too)
A billion dollars is almost impossible to picture — and yet many of the people who actually have it live nothing like you'd expect. No luxury cars in the driveway, no designer wardrobe, no chartered flights for every trip. The world's wealthiest individuals are often surprisingly tight with their everyday spending, and their habits hold a lesson or two worth paying attention to.
Here are six things billionaires like Warren Buffett refuse to splurge on — and what borrowing their mindset could do for your own wealth.
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1. Expensive Designer Clothes
Despite their massive amount of wealth, many billionaires, including Mark Zuckerberg and Bill Gates (with estimated net worths of around $220 billion and $102 billion respectively), are known for their simple and unassuming wardrobes. They often wear the same clothes every day, which saves them time and money.
While they could undoubtedly afford the most expensive designer clothes, they chose to spend their money on more important things.
2. Luxury Cars
While some billionaires do have a collection of luxury cars, many prefer to drive more practical and affordable vehicles.
For example, Warren Buffett, with an estimated net worth of $144 billion, drives a Cadillac XTS, which is a relatively modest car considering his wealth. Similarly, Alice Walton, the heiress to the Walmart fortune who has an estimated net worth of $142 billion, drives a Ford F-150.
3. Extravagant Vacations
Of course billionaires take vacations, but they often prefer more low-key and private destinations or exclusive resorts.
For example, Gates is known to visit the small town of Hood River, Oregon, for his vacations, even with all of that Microsoft money. He, like a few other stingier billionaires on this list, values privacy, frugality and simplicity over luxury.
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4. Expensive Watches
Many billionaires prefer to wear inexpensive watches and skip luxury timepieces. Buffett has been known to wear a $20 Casio watch, while Carlos Slim has been spotted wearing a $100 Swatch watch, even though he is worth an estimated $101 billion. If they can afford to tell time on a budget, you can too.
5. Private Jets
While owning a private jet is often seen as a status symbol among the ultra-rich, some billionaires prefer to fly commercial or use private jet services instead of owning their own.
For example, Zuckerberg has been known to fly commercial, and Buffett's company Berkshire Hathaway purchased NetJets (Executive Jet Aviation) in 1998 for approximately $711 million. Though this may seem like an extravagance, Buffett makes money on flying rather than spending it.
6. Big Houses
While many billionaires own multiple properties, some prefer to live in relatively modest homes. For example, Buffett still lives in the same house he bought in 1958 for $31,500. This is much less than the interest he earns per day.
To explain, through Berkshire Hathaway, he earns tens of millions daily from dividends and interest. Recent estimates show he gains around $37 million per day from overall wealth growth and significant amounts from specific holdings like Coca-Cola (over $2 million/day) and massive cash reserves earning interest, totaling roughly $12 to $38 million daily. All this to say, he could afford to move if he wanted to.
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This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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