It’s estimated that there are about 18 million people who are millionaires1 and 607 billionaires2 in the United States. Although becoming a millionaire doesn’t occur overnight, there are some frugal habits that have been adopted by some of the most well-known millionaires (and billionaires) that help keep their finances growing.
According to a researcher who studied more than 600 millionaires, she found that frugality was a key characteristic of wealth3. Here are some of the things they do (some are humorous!) to help maintain and grow their wealth:
1. Kristen Bell
a. Actress Kristen Bell has an estimated net worth of $20 million and has said in the past she does most of her shopping with coupons and has a special affinity for Bed, Bath and Beyond.
b. Her wedding to fellow actor, Dax Shepard only cost her $142, whereas the national average is $33,9314.
2. David Cheriton
a. David Cheriton has an estimated net worth of $6 billion and was an early private investor in Google. Some of his frugal habits are to take home leftovers from a fancy restaurant and eat them the next day, cut his own hair (for over 20 years) and drives a 1986 Volkswagen.
3. Ronald Read
a. Ronald Read was a Vermont based janitor who died in 2014 before accumulating a net worth of $8 million. His advice was to never pay for parking.
4. Warren Buffet
a. Warren Buffet is currently the world’s fourth-richest person and is estimated to be worth $89.9 billion dollars. He currently still lives in his Omaha, Nebraska home which he bought in 1958 for $31,500.
b. He still has not upgraded to a smart phone and uses his flip phone and spends modestly on food.
5. Tyra Banks
This model, producer and businesswoman’s net worth is estimated at $90 million. She is known to stay at economy hotels like the DoubleTree or Embassy Suites instead of the top hotels during fashion week. She also bought a house that was almost 20-years old5.
In next month’s blog, we will be asking our Destination Wealth Management clients what savings and money tips they would give their younger selves. Stay tuned!
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