Opinion: Frugal billionaires
By Karim Premji - Published on Friday, 17 September 2010 07:40
There is a divide in today's billionaires. Some spend generously, purchasing no small amount of expensive, superfluous trinkets. Others approach their finances in a pragmatic way, based on their needs. The latter is a much better example to follow, as the common citizen cannot afford to allocate resources poorly. The general monetary advice these economical billionaires can offer a community member is to spend wisely, and only on necessities. A bachelor does not need a mansion; it's akin to swatting a fly with a 747. An accountant does not need a large pickup if he will only be driving it to work and back, as his career does not necessitate the need for such a powerful vehicle.
Billionaires stay billionaires not because of what they spend their income on, but because of the money they choose not to waste. If a person were to purchase items and services based on what is useful as opposed to what is aesthetically pleasing, there would be no need for Prada and Gucci. Some may consider cutting one's own hair as cheap. Some may consider an inexpensive phone with fewer features as being hardly worth the purchase as it does not allow one to simultaneously text and tweet. However, in the uncertain economic period we live in, the smartest way to keep one's finances out of the red is to spend sensibly.