The answer is a big ‘yes’. Don’t look astonished because the rich continue to be wealthy not by spending but by saving. And you can’t save if you don’t value your wealth. To clarify in millionaire Warren Buffet’s way, the Value Investing Strategy, because a price is what one pays and value is what one gets, therefore, buy as much value as you can at the best possible price. A penny saved is a penny earned and never has it been truer than in the lives of the rich.
In fact,there is ample research to show that the rich are very good at keeping their cash because they are the biggest percentage of coupon users and coupon induced shopping. The wealthy are not ashamed of using coupons and they do it not because they need to save money but because they want to save money and keep being wealthy.
The well-off section of the society loves discounts as much as any other man in the street. Whenever someone is shopping they are looking for the best value, and if you can buy at reduced prices all the more joy to you. The rich understand the concepts of investing and compounding, and this principle helps them not only build their wealth but also to sustain it. It’s every rich man’s dream to retire with passive income, and how else will you do it if you are not frugal.
There are some interesting trivia about this trend in famous billionaires, for instance,
- Warren Buffet doesn’t carry a smart phone and neither has a computer on his office desk.
- The richest man in Mexico, Carlos Slim, drives an old Mercedes-Benz and doesn’t own luxury yachts or jets.
- Ingvar Kamprad, founder of IKEA, drives a decade old Volvo and flies economy.
- While Azim Premji takes an auto home from the airport and keeps tabs on the usage of toilet-paper rolls in his Wipro offices.
- Actress Kristen Bell loves using coupons for every possible spending.
Now, being frugal does not mean being cheap. When the rich are looking for discounts, they are being frugal and not petty because they know very well the value of money. For them, discounts are avenues for generation of money and translate to further investments. Investments and carefully calculated spending are how people become wealthy in the first place, after that it’s simple math to keep the habit unchanged. The truth remains that people who aren’t frugal soon end up not being rich anymore.
The principles of wealth are quite basic, and to quote the effervescent Robert Kiyosaki from Rich Dad, Poor Dad, ‘poor people purchase obligations (debt), while wealthy people purchase assets (intrinsic value and/or income producing).’And contrary to the popular belief, rich people are not spending left, right and center, they are hard-working people always on the lookout for rebates, discounts, coupons or in other words they are frugal and prefer to stay so.
At the end of the day, who doesn’t love a good bargain!