Do rich people live frugally? If you make a lot of money will you stop being frugal? There are the questions that sparked a conversation that went viral, with people sharing their experiences on the matter. We have sampled some of the best responses here.
Being Frugal To Leave Enough to a Charitable Cause
One user said that her sister deliberately lived a frugal life so that she could leave her money to charity, “My sister-in-law has millions of dollars. She has lived in the same 900 sq. ft. house for 50 years. Her car has over 200,000 miles. She reuses zip bags. She will split a toothpaste tube to get the last bits. She still wears a robe I gave her 19 years ago. She plans to leave her money to an animal sanctuary.”
Being Frugal To Minimize Waste and Care for the Environment
Another user said they stay frugal so that they can contribute to reducing carbon footprints, “We’re a household income of 7 figures but still prefer to live frugally to minimize waste and care for the environment. Also, it’s not in our nature to want to blow up money on brands or “designer” “luxury” goods. I love stealth wealth, and being rich means, I never worry about money.”
People With Wealth May Look Like Paupers Sometimes
A former banker pointed out that appearances may sometimes be deceiving, “Former banker here. The people around you locally with wealth do not look it. The person who looks like they make big bucks is the one fighting with us on $30 overdraft fees drowning in debt. The one wearing dirty jeans covered in paint and stains is the millionaire. True story.”
Another user agreed with this, saying, “I was walking to a secure area of a very successful business onetime, and a man I assumed was homeless was looking for April. I went and told April a homeless man was looking for her..she said oh no, he’s not homeless; he could own this place ten times over.”
Some Rich People Do Not See Themselves as Rich
One user said that rich people might sometimes be frugal because they do not think of themselves as being rich, “I imagine that rich people don’t think of themselves as rich, thus perpetuating frugality. I’m not rich, but I do well and live very humbly. We make all our meals at home, etc., and it is common for people to think we’re broke based on our habits. A friend of mine makes a similar salary and isn’t frugal at all. He is absolutely broke. You don’t get rich by living rich.”
The Trick Is To Stretch Money Further
Some rich folks stay rich because they know how to stretch their money, “I buy balcony seats at shows when I could afford orchestra. I buy lower airfare tickets at less convenient times. I drive a Honda FIT when I could afford an SUV. Makes money stretch further.”
Eating at Home Is a Money-saving Tip
One user urged people to eat out less and save, “I’m 62, retired, net worth in mid-7 figures. Been living frugally since my late 20’s. I shop at Aldi, Walmart, and Costco for most things. We enjoy cooking and dislike crowds, so going out to eat is a rare treat for us. We maintain our own house and have low-cost hobbies.”
Living Below Your Means
“People build wealth by living below their means. I invest like 40% of my income. I could blow way more money than I do. I chose not to,” said another user.
Only Buying What’s on Sale
One user pointed out that they stay rich by buying only what’s on sale, “Hard for me to consider myself rich, but we have bought 5 houses in 2 years, and save about $10k a month. That being said, we rarely buy anything that’s not on sale, and my wife buys all her clothes and the kids’ clothes second-hand.”
Buying Cheap and Investing
Another user stays rich because they invest their surplus and always buy everything cheaply, “I earn over $150k but was completely broke for the first 35 years of my life. I am still super frugal. I eat lots of tofu and chicken mince. I burn gifted candles in the evening instead of using lights. I shop at Aldi. I have the cheapest prepaid phone plan. I hardly ever buy things I don’t specifically need. All spare money goes into a HISA in case I ever fall on hard times again.”
Skimp on Everything Else Apart From Good Food
A user said they try to pay less for everything and go all in for food, “I’m worth 7 figures, but if you saw me, you would never know. I drive a 16 yr old minivan, live out of an RV traveling the US, and wear flip-flops. My teens know we have money, but they wear normal clothes from Walmart too. I won’t skimp on high-quality food, though. Why should I? We wear t-shirts and exercise shorts, but our cart is full of grass-fed, organic, wild-caught, non-GMO foods.”
Keep Your Neighbors Guessing
Another user said their lifestyle choice made neighbors feel sorry for them. Yet, they were rich, “I agonize and drive across town or take extra time buying things online, etc., to save a few dollars, use Ibotta rebates for groceries, drive Toyotas and keep them over 10 years, sell items we no longer need (although of course also donate other things). Neighbors probably feel sorry for us financially.”
Save Most of Your Income
One advised, “I’m a $500k+ annual income with a multi-7 figure net worth; I drive a 22-year-old car. Does that count? Certainly, our lifestyle expanded once we became financially stable, but I much prefer to be under the radar. I do occasionally blow money on nicer travel. But I save the majority of my take-home income and don’t waste money on depreciating consumer goods.”
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This article was produced and syndicated by A Dime Saved.
