They say you should learn from the best. And when it comes to finances, you can’t get much better than being a billionaire.
Here are three billionaire-inspired financial tips.
Drive a reasonable car
Not every billionaire drives a Ferrari or a Maserati. In fact, some drive pretty average vehicles.
Wal-Mart billionaire Jim Walton drives a 15-year-old pickup truck. Ingvar Kamprad, of Ikea fame, commutes to work in a 10-year-old Volvo. Even Warren Buffett is notoriously frugal when it comes to cars, forcing daughter Susie to get him a great deal on a new Cadillac before he’d write the check.
Buffett also kept his most recent Cadillac for a while, owning it from 2006 until 2014.
Don’t give into lifestyle inflation
Some billionaires live incredibly busy lives traversing between the four corners of the world. Others are much more normal.
Buffett is another great example. He lives in the same house in Omaha he purchased in 1958. Mexican billionaire Carlos Slim doesn’t own a yacht or his own private plane and he drives himself around. John Caudwell, a U.K.-based billionaire who made his fortune selling mobile phones, wears off-the-rack suits.
Mark Zuckerberg also doesn’t spend much on clothes. He has a whole closet filled with jeans, t-shirts, and hoodies.
Invest for the long-term
Billionaires know it isn’t enough to be frugal. You also must invest for future growth, whether that is through stocks, real estate, or your own business.
Starting a business is risky and may lead to failure. Or it could take off. Real estate and stocks are less volatile, but both offer lower potential returns.
The important lesson is to start investing in something, no matter what it is.
