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7 spending tips from Frugal Billionaires - Page 3

post #31 of 154
I think it's very selfish of them to do that.
post #32 of 154
Quote:
Originally Posted by deadly7 View Post
Warren Buffett has signed away 99% of his wealth to be liquidated and donated to charities when he dies. Bill & Melinda Gates signed away their income to fund their charity, which despite all of its scam-ness has helped at least some people.

+1

Also, the idea that anyone has $1b sitting in a bank is ignorant. The FDIC would only insure a smidgen of it, so nobody does it - far too risky. Furthermore, customarily, the wealth of a billionaire is tied up in stock in a company that either can't be liquidated easily or, if liquidated, would cause the share value of the company to nose-dive. So some people have to be billionaires, if that makes sense (just standing up for the little guys).
post #33 of 154
Quote:
Originally Posted by Bull View Post
c. Some sort of hellishly old necktie, the sort of necktie that simultaneously evinces miserable taste, frugality and ugliness in one fell swoop: http://tinyurl.com/2fdrfy5
Beautifully put.
Quote:
Originally Posted by Bull View Post
Also, the idea that anyone has $1b sitting in a bank is ignorant. The FDIC would only insure a smidgen of it, so nobody does it - far too risky. Furthermore, customarily, the wealth of a billionaire is tied up in stock in a company that either can't be liquidated easily or, if liquidated, would cause the share value of the company to nose-dive. So some people have to be billionaires, if that makes sense (just standing up for the little guys).
I had to look up FDIC (I'm young and not American) so I'll just shut up now.
post #34 of 154
This discussion again... No Billionaire ever became a billionaire because of their love of luxurious things. How they do or don't spend their money is irrelevent. Their spending habits are seen in people of all classes (frugal, spenders, etc). They became billionaires through their ability to convince people they can "deliver", and after forming a track record, how they dressed, acted, etc. had and has 0 impact on their ability to grow and maintain their wealth. If you're paying the lease on a 60 story building (or better yet, own it), and payroll for most of the people in it, you can wear a loincloth and durag to work, it does not matter.
post #35 of 154
I like the way the royalty handle their clothing purchases: they buy quality there is and wear it for as long as possible.
post #36 of 154
To those discussing the fortunes of the fortunate: Many people of substantial means keep the bulk of their cash in Treasuries. To whoever made the point about a billion/millionaires stake in a company giving value to the shares they do not own: This is true and a good point. However, there are many tools by which someone can relinquish their ownership over time without causing a decline in shareholder's equity. If you have the right people working for you, many institutional and strategic investors would drool at your kneecaps for 5%. If you have enough of those, the company can be held by a sea of nobodies, like many bigger public companies are today (ie GE, etc).
post #37 of 154
Well, happy Monday.
post #38 of 154
More:

Again on liquidity vs holdings:

It is a cycle most go through. Cash is always king, and someone with 1B in cash can be richer than someone with 5 in assets. The problem is when you have cash sitting around, inflation is gnawing away at it and losing out. When its invested, you want out because until your gains are in cash, whatever gains you've made are on paper and technically unrealized. Once you cash out you have the issue of reinvesting it again. So, there's no ideal scenario if you're actively involved and not retired, you live with the fact that its a cycle so long as you're an active participant.
post #39 of 154
Quote:
Originally Posted by Bull View Post
Well, happy Monday.





Is this an attempt to blackmail me? I didn't know she was a prostitute and I would've felt bad if I didn't pay her!
post #40 of 154
Quote:
Originally Posted by GoldenTribe View Post
My roommate told me this an hour ago. So all the money he manages to make before dying will simply do that much more good. I crossed my fingers that my comment would slip quietly into the night. Then again, I wonder what proportion of billionaires dedicate what proportion of their money to charity etc in their wills.
buffet and gates are trying to get billionaires to publicly pledge the majority of their wealth to charity as an example to draw in more. they've started w/ american billionaires but are apparently planning to expand. http://givingpledge.org/ edit: looks like they've signed up 40 american billionaires, which is about 10%. not bad of a start.
post #41 of 154
A billionaire should surely spend as they please, however wouldn't it be a better investment to purchase well made garments? One would think the inherent value of quality, aesthetics, and longevity would outweigh inferior, cheaper pieces.

It could be that the time required to research sartorial endeavors (or the money required to have someone do it for you) does not entice them enough to move it up on their list of priorities. While my priorities have not netted me a billion dollars, I do find it a bit disheartening to find the advocacy of such frugality in an area of one's life that so drastically impacts the way the entire world perceives you on a daily basis.
post #42 of 154
Quote:
Originally Posted by gorgekko View Post
Not a surprise. On a related note the cat that wrote The Millionaire Next Door reports that the average millionaire's car costs about $31,000 while the average deca-millionaire's car costs $38,000. That means all them BMWs and Benzes...people likely pretending to be rich.

So it's not a leap to imagine the average millionaire and billionaire doesn't spend a lot of money on clothes.

IIRC most of the BMWs sold in Europe are 320D. It's basically an economy company car. The pricing is set so it gets a full tax write off. It uses almost no fuel (The latest version is almost 70mpg combined. Even higher highway) If you keep it the normal 1 to 2 years it's only a couple of oil changes at most for service. The trade in value is fairly high.

So it's a pretty simple buy for the company accountants. Audi makes a similar car. So does Mercedes.
post #43 of 154
The only time you really see people dress in expensive clothing is when everyone in the company is well paid, ie finance, law, and other professional services.

The owner of say, a cookie factory, is a millionaire but the average employee wears jeans and a t-shirt. A polo shirt, khakis, and loafers are enough to establish his position in the company.
post #44 of 154
What we nobodies fail to understand is that wealthy people can afford to dress like crap, while working class folks usually cannot if they have any desire to ascend their economic status. If you want to be a bus boy for the rest of your life, dress like one....
post #45 of 154
Quote:
Originally Posted by bringusingoodale View Post
What we nobodies fail to understand is that wealthy people can afford to dress like crap, while working class folks usually cannot if they have any desire to ascend their economic status. If you want to be a bus boy for the rest of your life, dress like one....

+1

Word of reason finally. Imagine trying to make it on Wall Street in suits made by JC Penney.
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