My Trading Adventure
Rule to be rich : Be Frugal
CP TEH
Publish date: Fri, 09 Nov 2012, 06:32 PM
CP TEH
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All the writings in this weblog are mainly for PLEASURE reading purposes. I am in NO position to recommend a call(BUY/SELL). Please check with those know-hows before you make a decision. Yes, I am just a learner, with only five years experiences in KLSE. So, please BEAR with me.
Top Frugal Billionaires
At least once in your life - maybe even once a week or once a day for that matter - you have fantasized about coming into a lot of money. What would you do if you were worth millions or even billions? Believe it or not, there are millionaires and billionaires among us who masquerade as relatively normal, run-of-the-mill people. Take a peek at some of the most frugal wealthy people in the world.
Warren Buffett
Millions of people read Buffett's books and follow his firm's, Berkshire Hathaway, every move. The real secret to Buffett's personal fortune may be his penchant for frugality. Buffett, who as of September 2012 had a net worth of approximately $46 billion, eschews opulent homes and luxury items. He still lives in a modest home in Omaha, Neb. which he purchased for just $31,500 more than 50 years ago. Although he's dined in the best restaurants around the globe, given the choice he would opt for a good burger and fries accompanied by a cold cherry Coke. When asked why he doesn't own a yacht he responded: "Most toys are just a pain in the neck."
Carlos Slim
While most of the world is very familiar with Bill Gates, the name Carlos Slim rarely rings a bell. However, it's a name worth knowing. Slim, who is a native of Mexico, as of March 2012 holds the No. 1 spot as the world's richest billionaire - that's right, richer than the uber-famous Microsoft founder. Slim is worth more than $69 billion, and while he could afford the world's most extravagant luxuries, he rarely indulges. He, like Buffett, has lived in the same home for over 40 years.
Ingvar Kamprad
The founder of the Swedish furniture phenomenon Ikea struck success with affordable, assemble-it-yourself furniture. For Kamprad, figuring out how to save money isn't just for his customers, it's a high personal value. He's been quoted as saying "Ikea people do not drive flashy cars or stay at luxury hotels." That goes for the founder as well. He flies coach for business and when he needs to get around town locally he either takes the bus or will head out in his old Volvo.
Chuck Feeney
Growing up in the wake of The Depression as an Irish-American probably has something to do with Feeney's frugality. With a personal motto of "I set out to work hard, not get rich," the co-founder of Duty Free Shoppers has quietly become a billionaire but even more secretively given almost all of it away through his foundation, Atlantic Philanthropies. The foundation has distributed around $6.2 billion dollars into schools, research departments and hospitals. A frequent user of public transportation, Mr. Feeney flies economy class, buys clothes from retail stores, and does not wast money on an extensive shoes closet, stating "you can only wear one pair of shoes at a time." He made his children work the same normal summer jobs as most teens.
taken from : http://www.investopedia.com/
Taken from them, I do believe one of the important rule to accumulate wealth, be rich or even simply just to improve our personal finances is to be FRUGAL.
Live way way BELOW our means, that is my point.
Do not buy things we could not afford and if we do not use those items, even if we like them ... do not buy. My policy is much more stricter than general rule ...
I want to have a good headset/headphone, I have been saving for 5 months now to afford a RM500 budget ... and that will be my christmas gift to myself, for working hard.
We all should think of our spending.
Think.
Be frugal, especially if you are young.
TEH
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Discussions
2 people like this. Showing 19 of 19 comments
just frugal without earning enough is depressing. Can't afford and don't want to buy is a totally different scenario.
2012-11-09 20:51
cp, i certainly agree with jackpot. i teachees my young working children to spend provide d they are convinced where their next dollar is coming. in this way they will be smarter and come in contact with more people to deal with together with the merchandise they are buying.
2012-11-09 20:59
i think they enjoy during how to earn money more than how to spend money. our life actually is simple: sleep one bed, eat 3 times per day. more important: healthy, friendship and family love. enough!
2012-11-09 23:56
I think to get rich by being frugal is pathetic. That shows one has limited resources of income. One has to think and think before spending every penny. Wasn't that pity? And I respectfully disagree that one will get rich by being frugal.
2012-11-10 00:52
omg, leng chai teh u on your frugal spree again..
i think.. those who keep saying to stay frugal all the times, inside their heart, they always have somethings! somethings.. they desired for a long long time.
just like drug addict, they have to constantly fight with themselves to stay clean :P
having billions in bank doesnt make you rich, what you do with the money is, you only live once.
2012-11-10 01:05
It is nice to be rich and yet choose to be frugal.
These rich people are contented and confident with what they have and what is available. That is their real wealth.
2012-11-10 16:51
in mandarin there is a phrase says "open up the tap' n control the flow" if we control the flow all the time ,there is a limit to wat we can save, frugal is important but opening up the tap or enhancing is equally important . if not more important
2012-11-10 16:57
Hmm frugal to be rich.....???
Don't think Donald Trump was frugal, neither was Robert....maybe li ka sing.....
2012-11-10 17:06
sorry I dont believe a word coming from CP Teh... one day I speak the truth about CP TEH ... ONE FINE DAY I WILL.....
2012-11-10 19:16
Ya,agree, every penny saved equal to penny earned. Those object this principle mostly from middle income group,they like to spend more to show off like take more loan to buy expensive car and buy branded things.
2012-11-10 19:24
I have two friends. One is a miser and the other is bloody stingy. They fit into this category
2012-11-11 09:09
It's better to earn 100%, to spend 60% & save 40%, than to earn 100%, Spend 10% & save 90%. The knowhow of earning passive income is of upmost important. If we have the knowhow to earn more, than spending is not a major problem.
2012-11-11 10:16
always make a balance between earning and spending...live life.. dont let life live you.... spend 70% and save 30% of take home salary and income....try not to over do it.. the world is an amazing place....
2012-11-11 12:05
old chinese saying... no matter how big you are, there is always someone bigger...now matter much you have there is always someone with more.. so dont make money accumulation a competition...if money is coming your way, it will come, if money is not coming your way, no matter what you do it will never come....so dont penny pinch.. those people are not realy rich..they are just playing the game unfairly..
2012-11-11 12:10
warren buffet smart in making money?... think about it.. he is 80 years old over...a 40 year old person with a billion dollars is much much smarter cos one billion with compounding returns of 8% equals what? after 40 years.... much much much more that what those so called rich people are worth... do the math...compare apples with apples ok not apples with oranges...
2012-11-11 12:30
DaveSingh, agree with you, cannot compare apple with orange. billionaires spending 2 to 3 million a year is consider frugal. if rich is measure by $$$, believe those ppl make more more money to get rich, guess frugality is their virtue or habit.
a lot of working class earning beggar's salary and wish to live like a king, they have no choice but need to stay frugal, probably some of them can't even save 2 to 3 million in their lifetime. guess probably stay invested for working class, there is still chance to get rich.
Spend 500 to get a headphone (so expensive), can get a headphone in less that 100.. this month i have to attend few wedding dinners, guess my 500 gone..
2012-11-11 14:49
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or try to earn more dough
2012-11-09 20:19