Wilma I. Miranda l 21 April 2022 l Manila Bulletin, Business Options
Can you be rich and be frugal? Why do some of the world’s richest men live frugal lives? We all thought that because they have the money they can buy anything to their heart’s content – mansions in different places in the world, flashy cars, jewelries in sparkling big carat diamonds, never-ending parties, etc. There are some rich people who typically lead this kind of luxury but you would be surprised that those who are in the list of world’s richest, live lives that compared to us, simple ordinary men, our lives can prove to be more luxurious than them.
All of these world’s richest are businessmen and they own their businesses. We can learn the positive and negative sides of their being frugal no matter if we are millionaires ourselves or struggling business owners. The question is – is it worth emulating the kind of lives they live?
The latest shocking revelation is Elon Musk with an estimated $251 billion according to Bloomberg and is the richest man who recently offered to buy Twitter for $43 billion and admits that he is homeless and rotates living with friends’ spare beds (huh?). He does not own a yacht, do not take vacations and the only luxury he has is a plane which is a necessity for him to maximize his working hours, presumably instead of being stuck in traffic on the road. His long-term partner who has an on-and-off relationship with him – pop music artist Grimes, confirmed that Elon Musk does not live like a billionaire and revealed they sometimes live “below the poverty line” even experiencing eating peanut butter for eight days in a row! (source: independent.co.uk dated March 1, 2022)
I may not be rich as they are (in fact – far, far below) but for sure I cannot sustain eating like that for a week or so. I live by the motto “live below your means” but certainly not “below poverty level”!
The perennial number one cheapskate since Scrooge is Warren Buffet. Despite his wealth of around $44 billion, he still lives in his old house since 1958 which he bought for $31,500 only! He does not carry a mobile phone and no computer on his desk and drives his own car – a Cadillac DTS which is priced at an estimated $50,000. He avoids fancy parties and spends times playing bridge instead.
Another billionaire who is also a cheapskate is Mark Zuckerburg. Like Elon Musk, he does not own a home but rents a house (at least he does not stay with friends) and is always in t-shirts and jeans (source: Investopedia.com updated May 24, 2021).
All of them have one thing in common – they grew up in families who are not rich and where frugality is practiced (except Elon Musk who came from a rich family). That is one advantage if children are taught at a young age to live within their means or even “below their means”. They grow up believing that money has to be earned and not just handed over in a golden spoon. They are the ones likely to succeed.
Even in our offices and businesses, we must learn how to be cost-conscious. In the companies I used to work for (and I am trying to emulate them in my own firm now), I learned in every work experience I had – how we are taught how to be prudent in using company’s resources. These companies are not poor, in fact some of them that I work for are really huge conglomerates. But the reason they grow is because every employee is made aware on how to be prudent by implementing certain company policies. In effect, the company is not only benefited but the whole earth – for instance, reusing paper for draft copies, getting new ballpens by exchanging your old one without inks, logging in a logbook for the documents to be printed, etc. certainly can go a long way in saving the earth, too.
The modest lifestyle, however, of the billionaires can be brought to the extremes. One should also learn how to enjoy his money and certainly eating peanut butter eight days in a row is not only bad for the health but is depriving oneself of enjoying life by enjoying food. Creating memories and bonding with relatives and friends through non-lavish parties, and budgeting certain funds for travel are worth not only of our money but our time.
When we grow old and look back at the life we had, the ones that will bring smile to our lips are not those times when we scrimped even if we have the means, but times when we invest in something that will fill our memory chest with laughter and enjoyment.
For after all, we cannot bring our money when we die, but we can carry with us beautiful memories that will make us say in our last breath, “I have no regrets – for I have been a good steward of the blessings that the Lord entrusted to me – time, talents, resources – not in extreme frugality nor in lavish lifestyle but using my resources in what really matters.”
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Wilma Miranda is a Managing Partner of Inventor, Miranda & Associates, CPAs, Chair of the Ethics Committee of FINEX, Treasurer of Negros Outsourcing Services, Inc., and member of the Board of Directors of KPS Outsourcing, Inc. The views expressed herein do not necessarily reflect the opinion of these institutions. For comments: Wilma_517@yahoo.com