Frugal Money Lessons Learned From Big Bank Account Holders

When we think of millionaires and billionaires, our first thought is they must be having a decadent lifestyle that boasts of million-dollar mansions, high-end cars, designer clothes, and champagne and caviar in their food menu. However, despite having big bank accounts, not all celebrities or entrepreneurs think this way. Many of them believe in frugal living and practice simple things that take them a long way in their lives and inspires us, the lesser mortals to do the same. The stories about celebrities in financial woes or property foreclosure due to their failure to pay taxes, or overspending often make it to the front page of newspapers, but we don’t often hear about the frugal lessons they teach us. So here is what we learned from some of the top celebrities of the world.

Keira Knightley

The beautiful English actress, first came under the radar with the movie Bend It Like Beckham, but it was the Pirates Of The Caribbean Sea, that gave her much fame. However, if you ask us, we prefer her as Elizabeth Bennet in Pride and Prejudice. Despite having a net worth of $60 million, Knightley confessed in an interview that she gives herself a yearly allowance of $50000. She did add later that the amount is not enough for her. However, the very fact that she has allotted a budget for herself is the very basic step that one can take in order to make big bank accounts. However, you need to maintain that budget as well. If you can maintain the budget despite a higher income, then you can save up to fulfill your goals and also keep enough for future investments.

Jennifer Lawrence

Thanks to her amazing performance in The Hunger Games series, Jennifer Lawrence was the highest paid actress in 2015 and 2016. While the star is known for commanding a huge net worth now, she is also known for following a frugal lifestyle, unlike her peers. Lawrence was born into a middle-class family and owes it to the upbringing that instilled her the seeds of frugal living. She values money a lot even if she has tons of it. No big mansion or flashy cars for this Oscar-winner who still loves to clip coupons and save money. Surely a novelty in today’s world?

Gwyneth Paltrow

The very successful actress Gwyneth Paltrow has entertained the viewers for years and wowed them with her amazing performances. Today, besides acting she has her own lifestyle company Goop and earns big bucks from there. Being an entrepreneur she has realized the need to save on small things. That way, she can have more money for investments. She has said that she had redesigned her living room twice all by herself. Despite being a celebrity, she didn’t take the help of a designer to decorate her house, which is quite not normal. Straying away from the usual track she has shown us that there are certain things that we can do all by ourselves without spending tons of money on specialists.

Warren Buffet

Last but not the least we have Warren Buffet, who had made noise years back for being a billionaire with a frugal lifestyle. He lives in a house that he bought in 1958 for about $31000. Over the years the valuation of the house must have increased, but Buffet didn’t feel the need to move to a more luxurious mansion, that he could have easily afforded being a billionaire. However, he didn’t. In the HBO documentary, Becoming Warren Buffet, he confessed that he didn’t spend more than $3.17, ( which he spends on his breakfast from McDonald’s). We should all learn something from this great entrepreneur. Experts say that when our income increase and we keep our budget in check, that is when our fortune increases.

Life is not just about spending, but about creating a legacy too. Also for us, it is important to have savings for our future. Post-retirement we would need to have a strong bank balance to make sure our old age is passed without worries. It is best to balance your life. Neither be too frugal nor overspend. When you can achieve a balance between the two, your finances will show it as well.