IT’S ABOUT THE JOURNEY, NOT THE DESTINATION…
Many more Super Rich are known for their frugality than we would first realize. After all, they do not have time to spend riding around in Sports Cars, shopping or lazing around on Superyachts.
For many, true wealth lies in the ability to exhibit philanthropy and expand their own learning.
What does it truly mean to be rich? Many of us have felt the joy of a flashy new device, car or expensive item of clothing, or perhaps a salary increase or promotion. Is there more to being rich than owning expensive materials and constantly acquiring more ‘’stuff’’?
To be materially happy for instance, may mean having a sizable property, vehicles for easy transportation, flexibility to travel and a variable work pattern which offers us many benefits. However, many of the super rich do not necessarily chase this material goal of wealth and often live rather frugally.
For example, it is cited that Elon Musk chooses to live in a $45,000 house in Boca Chica, rather than an expensive mansion. Warren Buffet, chairman and CEO of Berkshire Hathaway, stated: “My life would not be happier… it’d be worse if I had six or eight houses or a whole bunch of different things I could have. It just doesn’t correlate.” Research has shown that an increase in wealth does bring greater happiness, yet only up to a certain point. Essentially, we reach a point where we can buy anything we like, and then realise there’s more to life than accumulating wealth.
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Many super-rich people choose to be philanthropists, finding ways to share their wealth and knowledge with the rest of the world. For example, Virgin Group founder Richard Branson channeled some of his investments into various initiatives to help others including the International Centre for Missing & Exploited Children ("ICMEC") and the Carbon War Room initiative.
It’s interesting that we naturally associate being wealthy with materialism; however, often many people reach this state of wealth due to their frugal attitude. For example, we all know of the old age adage: ‘squeeze every penny’ and that really is true in many respects. There are many ‘money savings challenges’ in the online sphere, and simple maths can tell us that if we save a proportion of our income every month, we will inevitably be richer by the end of the year. The next step would be to invest a proportion our savings, and watch them grow over time.
Frugality comes down to discipline, and discipline comes down to our dedication and effort. We must sincerely want to increase our wealth in order to take the appropriate action to build it. There are many stories of those going from ‘rags to riches’ through their own efforts; it is not always down to our circumstances or certain privileges available to us.
The countless books available on wealth show us how important it is to us; we need money in order to feel secure and to build a foundation for our lives and to support our offspring and prepare for a healthy retirement. It seems obvious to place an importance on wealth, as it governs every facet of our lives. ‘The energy of money’ by Nemea Nemeth (1996) discusses the power of money over our lives. We are asked to consider every thought we have and to count how many of those are linked to money and to write these down. She shows that many of our thoughts and actions are linked to money in some way. We are obsessed with it!
We must sincerely want to increase our wealth
in order to take the appropriate action to build it.
We are in an age of sustainability and extra concern for the environment. Many celebrities, including Leonardo DiCaprio, Woody Harrelson and Julia Roberts are openly sharing their work in this field. For example by wearing eco-friendly fashion, taking action combating climate change, eating a plant-based diet and shopping sustainably. DiCaprio has even been appointed as a UN Messenger of Peace on climate change.
Is this too much? Are we being too frugal? With energy rates increasing, central banks pushing higher interest rates and emerging from a global recession, it is no surprise that a frugal attitude is the norm rather than the exception.
What is the alternative to frugality? Excess. Let me ask you this question: if you were to choose whether to live your life frugally and count every penny, perhaps with a big savings account for the future or to live with access to unlimited products and travel opportunities, which would you choose?
It’s human nature to ‘want’ things and to satisfy certain drives and desires; it takes a disciplined attitude to think of the future and invest money to make more money in the long run.
What are the downsides or frugality? Often if we are ‘too frugal’ this may also cause problems, as we may neglect our self-care by cutting costs at all costs. We may become obsessed with money, but for unhealthy reasons, if we count every penny and become concerned with every purchase, we are not truly living a meaningful life.
There is an importance in finding a healthy balance, as with many aspects of life; moderation is the key. Many advocate the idea of ‘conscious spending’, whereby we are aware of the purchases we make and the reasons behind them, without becoming excessively caught up with counting pennies. We may also consider a more sustainable way of buying, considering locally farmed produce or supporting small businesses. When we turn the obsession with money into a focus for controlled and thoughtful spending, our money has power and we are the masters of it, rather than the other way around.
― emily james
columnist
Emily-Rose is an experienced writer and editor, having worked for various blogs, corporate publications and magazines over the years. Visit her profile to see recent articles with Houghton & Mackay
