14 Frugal Habits of the Rich and Famous

Turns out that there are many famous people who have plenty of money, but still take delight in spending as little as possible. Find out what they are in this post!

If you’re pinching pennies to pay off debt or save for a big goal like buying a house, you may struggle. However, if you’re frugal by nature or by regular habit, you likely feel empowered by your frugality. After all, why pay more for something than you have to? Turns out that there are many famous people who have plenty of money buy still take delight in spending as little as possible.

If they pinch pennies this way, you shouldn’t feel bad about doing the same, right? You should take comfort that you’re in good company!

Here are some of the most popular ways the rich save money:

Spend Money on Experiences, Not Things

As my kids get older and my tolerance for clutter diminishes, I find myself trying to follow this adage. You’ll remember experiences much longer than you’ll remember any expensive “thing” you want to purchase. Actor Rob Lowe prefers to spend his money this way. The dad of two sons states, “I’m willing to spend money to create memories for my kids and our times together. If it’s a trip or taking advantage of an opportunity, I will do whatever it takes. In terms of actual things, I’m not one of those guys that collects Vipers or Shelby Cobras, or has a rare book collection” (AARP).

Use Coupons

If you think coupons are just for super couponers, think again. Kristin Bell, Sarah Michelle Gellar, Kourtney Kardashian, Carmelo Anthony, Hilary Swank, and Carrie Underwood are just a few of the celebrities who openly and happily admit that clip coupons.

Don’t Spoil Your Kids

Many people who grew up with very little think that when they have kids, the best thing that they can do is give their kids what they themselves did not have. While this may be a good idea in theory, helping children become independent by having them make their own way in the world is often the best idea.

Bill Gates has earmarked most of his money to his charitable organization, not his kids. Warren Buffett says, “I want to give my kids just enough so that they would feel that they could do anything, but not so much that they would feel like doing nothing” (AARP).

Live Below Your Means

Unfortunately, the story of the famous singer or actress or athlete who ran through her money and was left destitute is all too common. Yet, there are many celebrities and wealthy individuals who intentionally live below their means. Jay Leno famously banked all the money he made from The Tonight Show the entire time he hosted, living instead off income from his stand up comedy.

Marry the Right Person

Divorce is an expensive proposition, especially if you’re a millionaire or billionaire. Wealthy individuals take the time to marry the right person and make their marriages work. A few of the wealthy who’ve stayed married for decades—Tom Hanks, Warren Buffett, Bill Gates, Ron Howard, Jon Bon Jovi, Denzel Washington, Jay Leno, Michael J. Fox, Bono, Jerry Seinfeld, and Rob Lowe.

Cook at Home

One of the best ways to keep money in your pocket and be healthier is to cook at home. A number of famous people prefer eating at home. In fact, celebrity chef and restauranteur Katherine Humphus left her career to start a new one—she created the meal order kit, Savory Made Simple, to help more people cook at home and create delicious dishes.

Dress Frugally

Fashion doesn’t have to cost thousands, for you or for celebrities. In fact, for the 1996 Oscars, Sharon Stone wore a Gap charcoal turtleneck! (AARP). Sarah Jessica Parker freely admitted that her son wears hand me down clothes from his cousins.

Drive a Reliable, Safe Car

If you drive a car that is safe and reliable versus flashy and fast, you have plenty of famous people to keep you company. Mark Zuckerberg, despite his millions, drives a $30,000 Volkswagon GTI. Aaron Patzer, founder of Mint, bought a $29,000 Subaru Outback after he drove his other car until it died. (Business Insider).

Once You Buy a House, Don’t Upgrade

Houses are expensive. If you buy a modest one and pay it off in a reasonable amount of time, you can earn while the house appreciates and you have no payment. Warren Buffett still lives in the five bedroom house he bought in 1958 for $31,500. A similar house in his neighborhood recently sold for $2.5 million (MSN). Similarly, the chairman and CEO of Telmex, Carlos Slim Helú, still lives in the six bedroom house he bought 30 years ago (Business Insider).

Pack Your Lunch

If you don’t pack your lunch for work, you could easily spend at least $50 to $100 a week. While that might seriously affect my budget and yours, that’s just pocket change for the rich and famous, right? However, celebrities also pack lunches to pinch their pennies. The founder and chairman of Dish Network, Charlie Ergen, packs his lunch—a sandwich and Gatorade—every day (MSN). Now that she’s no longer in the White House, Michelle Obama also packs her lunch daily. Her favorite meal? Homemade turkey chili.

Cut Your Own Hair

I don’t cut my own hair, but I do cut my son and husband’s hair. I estimate that we save at least $240 a year by doing this. Turns out, there are some rich folks who also cut their own hair including John Caudwell, a billionaire who earned his fortune in the British cell phone market (MSN).

Donate Money

One benefit of behaving responsibly with your money is that you have more to give to charitable causes. Bill Gates and Warren Buffett have pledged most of their personal fortunes to charities. Oprah is on record for donating $50 million in 2007, and when they were still together, Brad Pitt and Angelina Jolie donated 25% of their yearly income (Forbes).

Buy for Quality, Not Quantity

If you buy a quality product, you won’t need to replace it as often. The rich don’t mind spending a bit more upfront on a quality product that will last rather than buying several inferior products. For instance, T. Boone Pickens has explained, “I don’t go cheap on anything, but I’m not a shopper. If I want something, I look at it, decide what it is, but it will usually be the best product. I’ve got a pair of loafers that I still wear that I got in 1957” (Entrepreneur).

Avoid Credit Card Debt

Credit cards can be a great tool, if you don’t carry a balance. Most of the frugal rich are much more concerned with living within their means and investing the difference to grow their wealth. Part of that strategy includes not overspending and paying off their credit card each month.

If frugality doesn’t come naturally to you, try to motivate yourself by considering these frugal millionaires and billionaires. True, clipping coupons does not a millionaire make, but it’s the mindset that helps these people earn their money and keep it. Why spend more when you don’t have to?

Conclusions​

If frugality does come naturally to you, take heart that despite the many stories out there of celebrities who blow through their money and end up broke, there are wealthy individuals out there who take pains to manage their money responsibly. This helps them have even more money to donate and make the world a little better.