Millionaire Lessons

It’s estimated that there are about 18 million people who are millionaires¹ and 607 billionaires² in the United States. Although becoming a millionaire doesn’t occur overnight, there are some frugal habits that have been adopted by some of the most well-known millionaires (and billionaires) that help keep their finances growing.

According to a researcher who studied more than 600 millionaires, she found that frugality was a key characteristic of wealth³. Here are some of the things they do (some are humorous!) to help maintain and grow their wealth:

1. Kristen Bell

a. Actress Kristen Bell has an estimated net worth of $20 million and has said in the past she does most of her shopping with coupons and has a special affinity for Bed, Bath and Beyond.
b. Her wedding to fellow actor, Dax Shepard only cost her $142, whereas the national average is $33,931⁴. 

2. David Cheriton

a. David Cheriton has an estimated net worth of $6 billion and was an early private investor in Google. Some of his frugal habits are to take home leftovers from a fancy restaurant and eat them the next day, cut his own hair (for over 20 years) and drives a 1986 Volkswagen.

3. Ronald Read

a. Ronald Read was a Vermont based janitor who died in 2014 before accumulating a net worth of $8 million. His advice was to never pay for parking.

4. Warren Buffet

a. Warren Buffet is currently the world’s fourth-richest person and is estimated to be worth $89.9 billion dollars. He currently still lives in his Omaha, Nebraska home which he bought in 1958 for $31,500.
b. He still has not upgraded to a smart phone and uses his flip phone and spends modestly on food. 

5. Tyra Banks

This model, producer and businesswoman’s net worth is estimated at $90 million. She is known to stay at economy hotels like the DoubleTree or Embassy Suites instead of the top hotels during fashion week. She also bought a house that was almost 20-years old⁵. 

In next month’s blog, we will be asking our Destination Wealth Management clients what savings and money tips they would give their younger selves. Stay tuned!

As always, for any questions please email us at info@destinationwm.com. 

¹https://www.forbes.com/sites/jackkelly/2019/10/22/the-number-of-millionaires-has-boomedheres-where-your-net-worth-ranks-compared-to-others/#1d31342e576f
²https://www.forbes.com/billionaires/#27035e44251c
³https://www.businessinsider.com/frugal-billionaires-millionaires-lifestyle-money-car-house-habits-net-worth-2019-2
⁴https://www.kiplinger.com/slideshow/saving/T037-S001-14-frugal-habits-of-the-super-rich-and-famous/index.html
⁵https://www.businessinsider.com/frugal-billionaires-millionaires-lifestyle-money-car-house-habits-net-worth-2019-2#even-after-her-rise-to-fame-and-consequently-hefty-payouts-she-received-15-million-for-the-2018-film-red-sparrow-and-was-one-of-the-highest-paid-actresses-that-same-year-she-lived-for-several-years-in-the-same-three-bedroom-apartment-she-got-when-she-moved-to-los-angeles-45

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