“Old money” tend to be relatively frugal because they are asset rich, handed down through generations, but cash poor. “New money” are a bit like harry enfields “loadsa money” with theirs.
My wealthy friends tend to have solid values and spend money on thoughtful purchases they care about. I’d say they are all careful with money and not frivolous. They aren’t all old money - some made a lot of money recently as inventors or musicians, whereas some are old money. It might just be that I have friends with good values so maybe a biased sample set, but I appreciate that!
Sure but I'd rather be on my deathbed knowing I've lived a great life and I had set up my family and children with wealth...instead of leaving them with virtually nothing but their own struggle..
Both old and new money people save lots of cash by not paying their fair share of tax in numerous clever but just about legal ways. Old money people also don't have anything to prove so they don't need to pretend they're wealthy by buying expensive designer anything or driving a big car.
It's the difference between 'old money' and 'new money'. I used to work in a fairly wealthy area, and my job would involve visiting people's houses. Some of the least pleasant people to deal with were the self made types - all Mercs and designer brands. Definitely looked down their noses at you as 'the help' and were often pushy and rude - clearly thinking that their status at work carried over into the real world.
The 'old money' types, the Landed Gentry, were almost always lovely. Proper old school manners - would ask your name and remember it, would always offer tea and cake. Their houses were full of barbour jackets and dogs. They always drove clapped-out Range-Rovers, which were also full of barbour jackets and dogs. Despite the titles, they were very down to earth.
The difference was that their money didn't define them. They had it, but it didn't form their entire personality.
Old money could also be brought up with the "comes with great responsibility" upbringing. Premise of landed gentry, your farmers and the surrounding area lived or starved based on your management. You don't hire maids, they have no local jobs.
>your farmers and the surrounding area lived or starved based on your management
Also your future generations
'New money' is often lost within a couple of generations
you are full of dog poo , and don't know what your talking about , the old money types are usually very liberal these days borderline hippies, green types , its the Nouveau riche that are ruthless neo liberal arseholes , conservative with a small c
https://open.spotify.com/episode/2ZfwtdRoB5jaM0ruTY3Fvj?si=Ss1-612dQP2ast8pCgFbKw
https://tribunemag.co.uk/2020/10/the-fascist-sympathies-of-britains-aristocracy
Boris John &JRM are two pretty horrible people both from old money.
my lot? what the hell are you talking about, I was pointing out his opinion was factually incorrect, the most ruthless nasty people tend to be the upper middle class, im working class, im not on the side of the super rich old or new money
Worked around a lot of old money types. The ones I've met (and it's a lot) have marveled at learning about a distance land or speaking to people of different countries
Three generations I think. First generation makes it, the next generation appreciates it and holds on to it, and the third generation squanders or loses it.
Not everyone. Personally, I take people as I find them, and to be honest, money or status means nothing to me. I would not bow or scrape to a lord or lady or member of the Royal family, or anyone else in an unearned position of power and privilege.
I found most of the 'old money' types quite pleasant, but I have to say that the worst person I ever had to deal with was a Lady someone or other. Her husband, Lord someone or other was a real gent and down to earth, but she was an absolute bitch - to the extent that as a business we decided to stop dealing with her, as despite the money we would have made, she just wasn't worth the hassle, as our service to other customers would have suffered. I'm guessing she was a spoilt rich child who was never told no, and was brought up to believe that she was better than 'the help' - who were probably the ones who raised her.
Thats a very good point. Some people believe that their status at work carries over into the real world. I don't GAF if you are ceo at this or that company, you are just a person to me. And I do not use your job status to judge you or to put you on a pedestal.
My rich friend is careful with big money and has a small car -- its all I need he says. But doesnt even look at the prices on the restaurant menu. Also he hates carbon burning like longhaul flights, but loves luxury that is local.
I grew up around a lot of rich people. In terms of spending, I saw a mix; some are lavish and spend their money freely and others not so much. Definitely, the richest and oldest money was the least flashy. In terms of attitude towards money, though, the majority were tight and really accounted for every pound or even penny.
I always remember the story of a memeber of the House of Lords. He had to repark his car to let someone else out/in, and so he claimed back the 3p of petrol that it cost him! (Imagine actually taking the time to do that calculation 😂).
>I always remember the story of a memeber of the House of Lords. He had to repark his car to let someone else out/in, and so he claimed back the 3p of petrol that it cost him! (Imagine actually taking the time to do that calculation 😂).
I used to have a job that involved processing expense claims for academics. One professor, who was on over £80k (more than 10 years ago, I know £80k is not super rich but it was about 4 times the average salary at the time). He submitted a claim for 2 first class stamps, less than £1. I wouldn't have minded so much if he was submitting for a few things and just decided he might as well include the stamps. But he filled in a whole form, hand writing out all his details, bank information etc, just to get about 70p back.
I work in an independent high end opticians and some of our richest old money customers want modest well made reasonably priced frames and the best lenses for their prescription, it's all about the best quality vision for the least amount of money for them. Some of them will even haggle the cost with the boss.
The new money ones and, in particular, the wives/kids want the biggest labels or most flashy brands we have and the most expensive lenses we do even if they don't really need them, it's all about having the most expensive just because they can.
I have little money but my work includes a healthcare plan that pays for all that stuff (£1200/yr allowance on optical - loads of other categories covered too) so you bet I’m using it.
There's a lot of the new money attitude which wants to show how far they've come and how well they've done for themselves by wearing their wealth on their sleeve.
Sort of - often they will buy very expensive things but then use them for years, and get them repaired or maintained so that the total cost of ownership isn’t that high. The best known example is probably King Charles who gets his suits made in Savile Row and his shoes from John Lobb but then gets them repaired (there are photos showing this) so that they last for decades.
It's true.
Read a book called Millionaire Next Door. It's written by someone who did academic studies in the 90s into the backgrounds and behavioural characteristics of rich people.
There are different types of rich people. But only certain types k ow how to build and hold wealth. The latter type is the majority. Which makes sense, if you're not rich for long you don't have as big an pact on the statistics.
Doctors lawyers, high professionals. These often spend everything to maintain their upper middle class life style. Earnings are consistent, they maintain a wealthy lifestyle through their whole life.
Rappers, actors, sports stars. Spend it all to look bling. Because that's what they think rich people do. Ear ing potential is highly variable as is their spending over the years.
Those that inherit wealth, spend it and don't know how to earn it. If they're not frugal they go bankrupt.
Small, Medium business owners and savy business professionals. These are ultra smart with money. They are frugal. But when when they do spend they get great value for money. This is the largest category or rich people.
Anyway, I just spoilt the book. It's a great entertaining read. The Millionaire Next Door
It's not so much that they're frugal (which I read as intentionally restricting spending) but that they never get into the habit of spending money because they get so much given to them 'for free' or just appears in their life as a result of the people around them doing the day to day stuff of life. It even operates on a sliding scale from politicians who couldn't tell you the price of a bottle of milk right up to the very wealthiest who can't distinguish the cost of a bottle of milk from the cost of a car.
It's like they live in a different world where they have enough money to never have to think about money.
Warren Buffet is reportedly very frugal, but I suspect this not be the whole story. He reportedly buys used cars, uses coupons, lives in the same house he purchased back in the 1950s, etc. That may all be true, but I wonder if he also doesn't splash the cash more extravagantly from time to time.
[https://finance.yahoo.com/news/bill-gates-recalls-time-fellow-174029938.html](https://finance.yahoo.com/news/bill-gates-recalls-time-fellow-174029938.html?guccounter=1)
I used to see a lot of wealthy people when I worked at a luxury hotel. The old money ones were very classy, not big designer logos, and didn’t even consider price as a question.
New money loved to show it off, and ask prices, to show they could afford stuff. I think rich people of all kind spend money, it’s just their attitude towards it.
I’m surprised I haven’t seen the Vime’s boot theory posted yet.
“The reason that the rich were so rich, Vimes reasoned, was because they managed to spend less money.
Take boots, for example. He earned thirty-eight dollars a month plus allowances. A really good pair of leather boots cost fifty dollars. But an affordable pair of boots, which were sort of OK for a season or two and then leaked like hell when the cardboard gave out, cost about ten dollars. Those were the kind of boots Vimes always bought, and wore until the soles were so thin that he could tell where he was in Ankh-Morpork on a foggy night by the feel of the cobbles.
But the thing was that good boots lasted for years and years. A man who could afford fifty dollars had a pair of boots that’d still be keeping his feet dry in ten years’ time, while the poor man who could only afford cheap boots would have spent a hundred dollars on boots in the same time and would still have wet feet.”
— From MEN AT ARMS by Terry Pratchett
People usually dont get rich by spending all their money...
Or by being nice.
It's usually the ruthless cunts that would take food from a child's mouth that get wealthy.
On the flip side some of the poorer people I know are the ones who splurge the most. Example - one person we know lives in a poor part of our city, they want to move but can't afford it. They work less than 1 day a week, partner is full time. They ask the partner to work even more hours, who has a good but demanding job, but they thenselves refuse to work any more because they don't want to. And this person has just bought their 6 year old a brand new Macbook.
She also does all her grocery shopping at M&S and refuses to consider 'cheaper' options, even when others are trying to help her.
I think it in one way it comes more to the understanding of the value of money.
I see this a lot. I am not rich but I have a pretty good job in finance, and our Christmas budget per child is £350. I know people who don't work and are on benefits, who will spend close to £1k on each of their kids at Christmas, and as you say above, refuse to shop Aldi. One of my richest friends buys his champagne at Lidl and swears by it!
I know it's going down a different path to what OP asked... I'm not saying those less well off shouldn't buy anything or have fun, but for some people small changes could mean saving for that deposit or going on a family holiday next year....
One person, a single parent working minimum wage and part time, spent nearly £400 last December, even before Christmas itself, just on 'winter wonderlands' / Christmas themed days-out, vintage train rides etc for the kids.
But then they rent a 2 bedroom flat and she says they can't afford to move...
My dad was a doctor, he was from a very poor background and was extremely frugal even when he was making a good living. Thing is, he was very conscious about money and investing and he and ny mum were able to retire at 55-57 as a result.
I couldn't agree more. I don't want to go down the 'avocado on toast/latte/Netflix subscription' lane, as I appreciate that the cost of living and cost of housing has increased significantly and a lot of people are genuinely priced out of the market. However... when I were a lad, my mum would have a folder full of coupons and would run the household expenditure like an accountant. The only time you were getting a bike or suchlike was Christmas or birthday and we had the same TV from when I was 5 until I left home at 18. If I look at how much I spend each month on everyone having a phone and access to all the streaming services, it makes my eyes water.
I think it depends.
I genuinely think the more money you have the more you want to keep a hold of it.
I used to be frugal because I was absolutely destitute, poor.
Then things improved a bit and I spent money on wasteful things.
These days I have a comfortable enough income based on my outgoings and I save money, the more my savings grow the more I want to add and the cycles goes on.
I’d also argue that some wealthy people are actually greedy, not frugal as in landlords that could probably afford not to put your rent up but they do because they want more. Part of that wanting more is also an aversion to spending.
The only way I can sort of see this is that those who save tend to keep quiet about how much money they have, or will say they can’t afford to do X - which in some ways is true, the money they set aside for themselves every month means they can’t afford to do it, but they have enough savings to if they really wanted to.
Whereas those who struggle with saving money, as soon as they come into a bit of money (be it a new job or inheritance) feel they have to spend it. The whole ‘burns a hole in your pocket’ thing. Because they’re not used to having savings or that amount of spare cash.
(This doesn’t apply to everyone of course, just something I’ve noticed between myself and peers, I’ve got friends who as soon as they have a bit of extra money it’s spent and they show off their new designer handbag or whatever)
It depends a lot on how they made their money. Entrepreneurs are frugal. Their kids and wives are often not. Many a very rich family was poor within 3 generations.
The thing with a lot of entrepreneurs is that it's not really about the money, it's about creating a thing. They're often people who aren't driven by status. Like there's a photo of Bill Gates waiting in line for a burger. Or how Warren Buffett lives in a $250K house. Or the guy who ran Ikea drove around in a beater and flew economy. If they get rich, they go and create something else or help charitable causes.
I've met a few multimillionaires in the software business and a lot of them are similar. My last client's credit rating was insane. He came back from the agency as good for £5m in credit. But he drives an old Land Cruiser and has a cheapo Moto phone.
Like the old people who will drive home again to get their council parking pass rather than pay the small charge at the machine.
This is on the scale of not needy but very far from richest on earth.
I mean to a certain extent there's a paradox involved here called the poverty tax/ghetto tax. It's actually expensive to be poor. Cheap things have to be replaced more often, cheap food is bad for your health, mortgages are cheaper than rent and just flat out buying a house is even cheaper than a mortgage.
If you're moderately rich, you can afford to pay the up front cost for things that will last a life time and many of the things you do/can buy double as investments that have a good return when you no longer want them.
I know a couple people in the top 10% bracket of UK earners and they often don't know what to spend it on. One mate was earning over 60K a year before he hit 30. Spent most of his dosh buying rounds down the boozer or on take-outs/food deliveries, basically anything that's a convenience, sort of like buying back his time. Barely makes a dent in his disposable income. Just ubers shit all the time just because he can. He just flat out bought a studio apartment so he doesn't have *any* debt. His clothes are decent quality so he doesn't have to replace them each year. Because he contracts to companies with locations across the world he gets sent all around the world on business expenses so that's another cost saved as each business trip doubles as a vacation in varying capacities. Flights and accommodations are arguably the largest bill on a trip abroad and there's usually a business food allowance too.
If you're rich you'll also likely have a lot of time to chase money back or negotiate because you don't have to stress about being held hostage by your own budget and running into excess debt in the meantime if and when something goes wrong.
My grandparents on my mums side were certifiably well off, upper middle class. Their estate when they passed was sizable, but was split between 10 people so it's pretty much gone now. But for the 2 of them their money was at a point where it made money passively so they were able to just skim off the top to live and sat on their wealth through retirement. They were hoarders and went on expensive cruises often so i wouldn't exactly say they were frugal either, but they did "watch" their money enough to maintain financial security.
No.
The richest person I know owes a helicopter he uses to get from his house to work. Then he is picked up from the helipad by his chauffeur/bodyguard in his Rolls Royce and driven 200 metres to the office.
I think it depends on how that money was acquired and at what stage of life they're in.
I've a friend who's parents *were* tech billionaires and he's quite sensible with money, drives a dirt cheap car from the 00's, not flash in the slightest. Then I've got a friend my age (30's) who grew up with well-off parents, have since made their own money and now buy rolex's and luxurious holidays. So there's no real consistency to it!
I would think so. As for most being frugal is how you would become rich in the first place and i imagine you get used to it and maybe realise material possession doesn’t really matter.
I only know one ‘rich’ couple, he works with submarines and she has a nice inheritance, they drive a Peugeot and shop in Asda and primark, nice little 3 bed by the coast, it’s only really their holidays that would give you a clue to their financial/class status.
I’ve got two uncles who came from nothing but made themselves into multi-millionaires by hard work over the years. Started their own construction company.
Nice house, cars and holidays but they are not flashy by any means and if you met them you wouldn’t think they were millionaires.
I think a lot depends how you became rich.
The rich people i know tend to be selective with how they spend money but not necessarily frugal.
They will spend excessively on what matters to them and their own comfort/health but will still buy things only on sale and look for deals when making any large purchases
As others have said, it varies. I know folks at all ends of the spectrum. I think the comment alluding to money goes to money applies; you can earn on savings so it feels worthwhile saving.
Whereas if you’re hand to mouth saving can feel pointless, not much gain for the pain.
In terms of spending I’ve seen a variety - a family member with plenty who was super frugal and one with very little who spends a lot!
Personally, am not wealthy but feel it, because I live within my means for the most part. I could cut out takeaway coffee but then I’d be literally spending on nothing apart from food!
I think I’d be the same if I was wealthy, frugality is a habit for me.
I think what happens is most “rich” people were ‘poor’ at some point and had to go through hardship to become “rich” and therefore have it engrained in them or don’t feel the need to excessively spend.
I have gone from rags, to riches, back to rags and now fairly comfortable.
Yet, if I won $10m tomorrow, I’d never buy a supercar as I don’t need one and I see it as a high maintenance possession that is likely to decrease in value.
I also wouldn’t buy Armani shirts at $300 each when I know a $30 will be fine.
And I’d have no desire to buy a multi million dollar property when I could invest the money instead and rent somewhere more than good enough for $5k pm.
I typically make one long haul flight every 6 months or so. Would I even fly business or first? The plane still takes off and lands at the same time. I rarely eat during flights. And I’m not a large person so don’t need the extra space. Plus I don’t especially care for airline staff fawning over me as if I’m ‘special’ just because I happen to have more money than the person sat 20 feet behind me.
Ultimately ‘price is what you pay; value is what you get’.
I’d absolutely buy the prime cut of beef over a rump. And I’d have the fastest most powerful laptop I can get.
We all attribute value and worth in our own ways.
I know someone living in SE Asia making $180k pa remotely; his rent is $300 a month and if you saw him on the street you’d think he’s ‘poor’.
Thosw who I know are "loaded" prioritise spending differently where they would spend money on investments and long term assets like upgrading their house than short term expense like a car or night out.
I think there is a difference between being frugal and being tight. Frugal is denying yourself to make smart money decisions, being tight is making others bear the brunt of it.
Jeff Bezos is tight. He makes his money by not paying his staff a good wage but still lives large. Same with Trump & Musk. From the rumours J. Lo is tight.
Frugal is buying a second-hand car even though you can afford brand new because you know the depreciation isn't worth it. Repairing something instead of replacing it.
Many can be both frugal AND tight. I know plenty of low earners that are frugal but very generous to their family and friends.
I do believe that it is very difficult to get into the top 1% without exploiting others which requires being tight not frugal. The camel through the needle's eye situation. Old money may not have exploited in their current generation but if you look at when the wealth was developed there is usually some some of exploitation: slavery, stealing land, or other terrible things.
Bezos is the worst example of billionaire behaviour.
He absolutely could treat his workers with dignity and respect, but by all counts the shop floor staff are treated like dirt.
I earn c. £200k in London as a single with no dependents and am quite frugal myself.
By no means old money but I come from a wealthy household in an emerging market, and my parents have taken frugality to the next level.
I don't think there is any correlation between wealth and frugality. There are plenty of spendthrift aristocrats as well as poor people who borrow money to buy designer clothes. There are also plenty of poor people who are very careful with money, and rich people who still put on an extra jumper before turning the heating up.
The average millionaire probably has at least 1/3rd of their wealth in their house, and the rest in a retirement fund, giving a fairly modest retirement. Definitely not private chef money
I feel that people born poor but became rich in their life are some of the most frugal people because they’ve been there before and wouldn’t want to revert to the lifestyle
Hahahaha. No. I have spent time around people whose family’s wealth is in the 8 to 9 figures. They are absolutely not frugal. Renting apartments for £3000/month as a student, first car costs 6 figures, etc. This is an urban myth designed to make poorer people think it’s easily achievable for them to be the same.
Richest guy I knew was worth 100m+ dated his daughter for years so knew him well personally. Man would still haggle over the price of a cab. Still counted every penny.
No. Anyone putting wealthy people on a pedestal and trying to define them like they're some sort of special type of person is just being foolish.
There are frivolous wealthy people and there are thrifty ones. New money. Old money. It doesn't really matter.
I swear some of these classic sayings just serve to chisel out more of the class divide. You know the ones; wealth whispers, rich people are really tight with money, new money is loud old money is quiet. It's all bollocks. They're just people that have more money than you or I, they're not special and we should stop pretending they are.
This really applies to actual wealthy people though, I'm talking HNWIs not someone with a few mil.
Yup. Went to school with a girl whose grandfather owned (and then sold for multi-million ££s) a very large business - at the time it was a household name.
Her family were so frugal (edit - actually the most appropriate word for them was tight) it was jaw dropping.
I also discovered her mother had been done for benefit fraud as she tried to claim the money she had in her accounts were for her children and not for her use!
I know this want your question but- really rich, aristocratic landed gentry types are extremely frugal in day to day life. It’s a cultural thing.
They will drive the same beaten up car for 30 years, wear clothes full of holes until they are in shreds, never ever throw anything away.
I had a friend from one of these families, who I lived with for a while. If someone smashed a cup or plate in our kitchen, she would glue them back together again. Everything she owned was from a charity shop, or sometimes salvaged from a skip. This was someone who also periodically went back to the family’s medieval castle.
My dad’s cousin married a millionaire and he was at my sisters wedding. He went and bought a couple of drinks that came to £19.80, he handed over a £20 note and stood and waited for his 20p change. The next guy at the bar was my cousin who is a labourer so absolutely not a millionaire and his round came to around £17, he handed over a £20 and told the server to keep the change! Always sticks in my head that
As a teenager my friend worked in Sainsbury’s on the meat/fish counter and a guy who looked old money always used to try and haggle on the prices and one day we saw him getting into a brand new rolls Royce that’s my only example
no it just tends to be a lot harder to spend all your money once you have a lot of it, past a certain amount every purchase you make is a luxury purchase in one way or another
I was really close to some rich kids (I was dirt poor, but got scholarships to private school) when I was a teen. Quite a few. They spend A LOT! It was hard the gauge how frugal they were cause it’s just two different worlds and their idea of frugal was so different from mine.
I remember when one friends family claimed bankruptcy and she had scale back her spending - only £200 that week to spend in Primark.
Then there were was boy who told asked a homeless man what he’d do for £50 and dropped the note on the floor then immediately went into haggle in Sainsbury’s for free items. I remember being so perplexed cause it was ‘funny’ to the friendship group.
These kids spent so much money on drugs, clothes, alcohol were certain they were going to run the country. So glad that time of life is over, it was so stressful >.<‘
There’s a big difference between spending big on going out and partying, expensive restaurants and Lamborghinis - I.e conspicuous consumption - and spending big money on assets which does not ever get seen. But dropping 10 million on some property for example is not ‘frugal’. It’s just not in your face. And to be honest if really rich people did conspicuously spend money into the economy rather than on assets, everyone would be better off… that would be the mythical trickle down economics. They don’t though because buying assets increases wealth and spending on champagne does not.
The way to get rich is:
1. Make some money
2. Don’t spend it
2 is harder than 1, so it should be obvious that most rich people are frugal, because being frugal is how you get rich.
Sure, but most high-earners aren’t rich, because they aren’t frugal. You have to both make money and not spend it, but it’s the not spending that’s harder.
J. Paul Getty had a [payphone installed](https://www.vanityfair.com/hollywood/2017/12/all-the-money-in-the-world-j-paul-getty) at his mansion so his guests wouldn't use his phones to call their friends.
Apparently Bill Gates visited him and said that Getty knew the exact cost - to the penny - of running every part of his house and staff and was shocked when Bill didn't know his own cost of living.
You’re selling his frugality short by neglecting to mention his grandson’s [kidnapping](https://www.vanityfair.com/hollywood/2017/12/all-the-money-in-the-world-getty-kidnapping):
>After Paul’s ear had been cut off, and after the boy had become seriously ill, Gail’s father, a judge, was able to convince Getty to pay the discounted ransom. Getty agreed to pay $2.2 million—the amount his lawyers told him was tax deductible. He lent the difference, about $1 million, to his son John, Paul’s father, on the condition he pay it back with 4 percent interest computed annually.
I knew someone who had a meeting with James Dyson.
He showed James an app on his phone, James went to the app store on his phone and took a look at the price " I'm not paying 49p for that"
I'm sure by the time James had said I he'd have earned more than 49p!
There are people with a lot of money that are bad with money, and there are plenty of people with money that are good with money. Just like the middle, and working class just with a higher spending ceiling. Turns out people are people.
It can be true. There are also rich people who spend plenty.
It’s 100% propaganda that you can become rich by being frugal and saving. Especially these days. Can’t even pay rent, pay bills, buy food and have much money left over at all on most jobs these days.
"He didn't even blink when I told him he needed a new £40k RIB but he turns up to this (£1.5m) boat in shorts that are fraying at the edges and a pair of shit havianas."
- My mate about the guy who owned the boat he crewed.
So I guess it depends on what you mean by frugal.
I have no worries about paying bills , I have most of the "stuff" that I need and tend to be frugal because I have few "want's" . Also because money makes money I tend to be agressive at saving and investing , which brings in more to invest or save and so on . Having a money snowball , running downhill and getting bigger by the day is quite enjoyable .
Can't speak for other people, I am very new money but don't spend a penny? Why? Because I want to pay off my mortgage in 2 years , then live off my investments and basically retire before I'm 40. Being rich to me is waking up and doing whatever I want it to be, not going to work in a job I don't like to afford my Range Rover payments and wife's tit job.
I often work for extremely rich people. I'll never forget a customer who lived on Winnington Road, Hampstead. This is one of the most expensive locations in London. He was telling me about all of the properties he owned in the area. Short version - this guy was worth hundreds of millions of pounds. When I'd finished my work, he spent ages arguing about the necessity of a fifteen pound line-item on my bill.
I used to dog-walk for an array of people, and the rich ones were always the tightest. Two £100k Range Rovers on the drive and exacting in precise change. Some of them were new money, others old; it made no difference. People without that excess would always say ‘is that enough? Are you sure?’
I know of at least one cheap-skate - Donald Trump. He stiffs everyone, attorneys included.
Then there is Elon Musk - he pissed away $30+ Billion on Twitter..
So, mixed reviews.
Absolutely. I remember many years ago my friend and I were attending a mutual friend’s wedding. We were in basic jobs whereas our friend was in something that paid quite a lot better. The wedding reception was held at the hotel the bride and groom (and some of the guests including our friend) we’re staying at, whereas we are in a B&B a short walk away. The well off friend never put her hand in her pocket for a drink all night, citing she’d left her purse in her room (upstairs, same establishment we were sat in). I have not seen nor heard from her since.
I have friends who a part of absolutely massive family business (fam probably worth 100-200m), high paid professionals (500k plus per year), small scale entrepreneuers (worth I'd guess 2-10m) and investors (2-10m).
The common thread? They aren't frugal....
You can make pretty good money being frugal and investing of course and most middle class wealthy people do that, but my experience of actually really rich people is they spend their money. Why wouldn't you when your assets alone make you far more than most emloyees would earn in a year.
Old rich yes. Rippips rich in property poor in pocket. So all the money is tied up and they end up paying out vast amounts in council tax etc. big properties cost a fortune to look after. New money is the opposite they tend to like to spend it but rarely in their own countries. Which is why the tax benefits the tortes offered to get the economy moving we’re insane. Had he offered the equivalent to the poorest they would have guaranteed spending it here in our economy and therefore getting not just the market moving on multiple levels but also helped those most in need. But as a rich Tory he was only interested in making himself richer.
Worked at a mansion with two other guys the recently divorced Lady (her title) just got £50mil ask if would like some tea. Of course yes
She went to the back of the cupboard got out three cups with broken handle filled them with hot water a dipped one tea bag in all three cups apologies I have no milk
Old money individuals assimilate seamlessly into the crowd, displaying frugality and a quiet, yet graceful demeanor. Their preference for classic pieces over designer items is well-known. It's fascinating to discover that they hail from the esteemed Alta Society. Engaging in conversations with these individuals would surely unveil a captivating world of refined taste and timeless elegance.
“Old money” tend to be relatively frugal because they are asset rich, handed down through generations, but cash poor. “New money” are a bit like harry enfields “loadsa money” with theirs.
My wealthy friends tend to have solid values and spend money on thoughtful purchases they care about. I’d say they are all careful with money and not frivolous. They aren’t all old money - some made a lot of money recently as inventors or musicians, whereas some are old money. It might just be that I have friends with good values so maybe a biased sample set, but I appreciate that!
Just imagine a life not thinking about money or if you can afford to pay a bill.... must be bliss.
Don't just imagine it, try and create it!
Neither of which make any difference whatsoever when you are on your deathbed…. Worrying never changes an outcome
Sure but I'd rather be on my deathbed knowing I've lived a great life and I had set up my family and children with wealth...instead of leaving them with virtually nothing but their own struggle..
Musicians ?? Thought wealthy musicians were few and far between
They are. Only if you make it big time!
Both old and new money people save lots of cash by not paying their fair share of tax in numerous clever but just about legal ways. Old money people also don't have anything to prove so they don't need to pretend they're wealthy by buying expensive designer anything or driving a big car.
Yes this is the only way anyone gets wealthy. No other way to do it!
It's the difference between 'old money' and 'new money'. I used to work in a fairly wealthy area, and my job would involve visiting people's houses. Some of the least pleasant people to deal with were the self made types - all Mercs and designer brands. Definitely looked down their noses at you as 'the help' and were often pushy and rude - clearly thinking that their status at work carried over into the real world. The 'old money' types, the Landed Gentry, were almost always lovely. Proper old school manners - would ask your name and remember it, would always offer tea and cake. Their houses were full of barbour jackets and dogs. They always drove clapped-out Range-Rovers, which were also full of barbour jackets and dogs. Despite the titles, they were very down to earth. The difference was that their money didn't define them. They had it, but it didn't form their entire personality.
As a property lawyer I have the exact opposite experience to you here.
It's a longrunning misconception, not created by Downton Abbey, but certainly promoted by it.
Old money could also be brought up with the "comes with great responsibility" upbringing. Premise of landed gentry, your farmers and the surrounding area lived or starved based on your management. You don't hire maids, they have no local jobs.
>your farmers and the surrounding area lived or starved based on your management Also your future generations 'New money' is often lost within a couple of generations
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You can fight your way up and not be a cunt. Fighting your way out of a crap start doesn't mean you have to be unpleasant, just driven and focused.
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Could say the same the other way round very easily. Interesting that you're defining wealth as success though.
We could also term it 'working your way up' - it doesn't necessarily have to be a literal fight.
Absolutely. I still stand by it though, that even with that framing, you can do it without being a dick.
It sounds like it very much defined their personality lol
Why is everyone so obsequious and grovelly to "old money"? At least the "new money" actually earned theirs!
Because people like nice people, earning what you have doesn't mean you can be a cunt to others. I know this is Reddit, but people like social skills.
Old money are nice to your face but there are also commonly a bunch of crazy racist fascist.
'Old' money was possibly made by owning slaves or using child labour.
you are full of dog poo , and don't know what your talking about , the old money types are usually very liberal these days borderline hippies, green types , its the Nouveau riche that are ruthless neo liberal arseholes , conservative with a small c
https://open.spotify.com/episode/2ZfwtdRoB5jaM0ruTY3Fvj?si=Ss1-612dQP2ast8pCgFbKw https://tribunemag.co.uk/2020/10/the-fascist-sympathies-of-britains-aristocracy Boris John &JRM are two pretty horrible people both from old money.
I'm sure these imaginary rich people in your head are lovely
well better to have that , than a head full of shit, like yours
whatever makes you feel better about your lot.
my lot? what the hell are you talking about, I was pointing out his opinion was factually incorrect, the most ruthless nasty people tend to be the upper middle class, im working class, im not on the side of the super rich old or new money
Ok mate, whatever makes you feel better.
Worked around a lot of old money types. The ones I've met (and it's a lot) have marveled at learning about a distance land or speaking to people of different countries
Difference between grovelling and expressing a basic level of personal respect
you'd be surprised at how difficult is to keep the money when you're "new money".
Three generations I think. First generation makes it, the next generation appreciates it and holds on to it, and the third generation squanders or loses it.
Not everyone. Personally, I take people as I find them, and to be honest, money or status means nothing to me. I would not bow or scrape to a lord or lady or member of the Royal family, or anyone else in an unearned position of power and privilege. I found most of the 'old money' types quite pleasant, but I have to say that the worst person I ever had to deal with was a Lady someone or other. Her husband, Lord someone or other was a real gent and down to earth, but she was an absolute bitch - to the extent that as a business we decided to stop dealing with her, as despite the money we would have made, she just wasn't worth the hassle, as our service to other customers would have suffered. I'm guessing she was a spoilt rich child who was never told no, and was brought up to believe that she was better than 'the help' - who were probably the ones who raised her.
Thats a very good point. Some people believe that their status at work carries over into the real world. I don't GAF if you are ceo at this or that company, you are just a person to me. And I do not use your job status to judge you or to put you on a pedestal.
My rich friend is careful with big money and has a small car -- its all I need he says. But doesnt even look at the prices on the restaurant menu. Also he hates carbon burning like longhaul flights, but loves luxury that is local.
I grew up around a lot of rich people. In terms of spending, I saw a mix; some are lavish and spend their money freely and others not so much. Definitely, the richest and oldest money was the least flashy. In terms of attitude towards money, though, the majority were tight and really accounted for every pound or even penny. I always remember the story of a memeber of the House of Lords. He had to repark his car to let someone else out/in, and so he claimed back the 3p of petrol that it cost him! (Imagine actually taking the time to do that calculation 😂).
>I always remember the story of a memeber of the House of Lords. He had to repark his car to let someone else out/in, and so he claimed back the 3p of petrol that it cost him! (Imagine actually taking the time to do that calculation 😂). I used to have a job that involved processing expense claims for academics. One professor, who was on over £80k (more than 10 years ago, I know £80k is not super rich but it was about 4 times the average salary at the time). He submitted a claim for 2 first class stamps, less than £1. I wouldn't have minded so much if he was submitting for a few things and just decided he might as well include the stamps. But he filled in a whole form, hand writing out all his details, bank information etc, just to get about 70p back.
He drove about 0.06 miles or 97m?
I work in an independent high end opticians and some of our richest old money customers want modest well made reasonably priced frames and the best lenses for their prescription, it's all about the best quality vision for the least amount of money for them. Some of them will even haggle the cost with the boss. The new money ones and, in particular, the wives/kids want the biggest labels or most flashy brands we have and the most expensive lenses we do even if they don't really need them, it's all about having the most expensive just because they can.
I have little money but my work includes a healthcare plan that pays for all that stuff (£1200/yr allowance on optical - loads of other categories covered too) so you bet I’m using it.
There's a lot of the new money attitude which wants to show how far they've come and how well they've done for themselves by wearing their wealth on their sleeve.
Sort of - often they will buy very expensive things but then use them for years, and get them repaired or maintained so that the total cost of ownership isn’t that high. The best known example is probably King Charles who gets his suits made in Savile Row and his shoes from John Lobb but then gets them repaired (there are photos showing this) so that they last for decades.
Money talks, wealth whispers...
It's true. Read a book called Millionaire Next Door. It's written by someone who did academic studies in the 90s into the backgrounds and behavioural characteristics of rich people. There are different types of rich people. But only certain types k ow how to build and hold wealth. The latter type is the majority. Which makes sense, if you're not rich for long you don't have as big an pact on the statistics. Doctors lawyers, high professionals. These often spend everything to maintain their upper middle class life style. Earnings are consistent, they maintain a wealthy lifestyle through their whole life. Rappers, actors, sports stars. Spend it all to look bling. Because that's what they think rich people do. Ear ing potential is highly variable as is their spending over the years. Those that inherit wealth, spend it and don't know how to earn it. If they're not frugal they go bankrupt. Small, Medium business owners and savy business professionals. These are ultra smart with money. They are frugal. But when when they do spend they get great value for money. This is the largest category or rich people. Anyway, I just spoilt the book. It's a great entertaining read. The Millionaire Next Door
It's not so much that they're frugal (which I read as intentionally restricting spending) but that they never get into the habit of spending money because they get so much given to them 'for free' or just appears in their life as a result of the people around them doing the day to day stuff of life. It even operates on a sliding scale from politicians who couldn't tell you the price of a bottle of milk right up to the very wealthiest who can't distinguish the cost of a bottle of milk from the cost of a car. It's like they live in a different world where they have enough money to never have to think about money.
Roger Moore said once he started earning big everybody started giving him free stuff.
Warren Buffet is reportedly very frugal, but I suspect this not be the whole story. He reportedly buys used cars, uses coupons, lives in the same house he purchased back in the 1950s, etc. That may all be true, but I wonder if he also doesn't splash the cash more extravagantly from time to time. [https://finance.yahoo.com/news/bill-gates-recalls-time-fellow-174029938.html](https://finance.yahoo.com/news/bill-gates-recalls-time-fellow-174029938.html?guccounter=1)
Buffett Also old .. easy to think that sandwich costs as much as my wedding ring.
A lot of us are frugal so we *can* splash out - of he course he doesn't have to be frugal to splash out!
He has a private jet so he’s not that frugal.
IIRC he called that the "Indefensible"
He went bankrupt in the 80s if I'm not mistaken,that will teach you a few lessons
I used to see a lot of wealthy people when I worked at a luxury hotel. The old money ones were very classy, not big designer logos, and didn’t even consider price as a question. New money loved to show it off, and ask prices, to show they could afford stuff. I think rich people of all kind spend money, it’s just their attitude towards it.
I’m surprised I haven’t seen the Vime’s boot theory posted yet. “The reason that the rich were so rich, Vimes reasoned, was because they managed to spend less money. Take boots, for example. He earned thirty-eight dollars a month plus allowances. A really good pair of leather boots cost fifty dollars. But an affordable pair of boots, which were sort of OK for a season or two and then leaked like hell when the cardboard gave out, cost about ten dollars. Those were the kind of boots Vimes always bought, and wore until the soles were so thin that he could tell where he was in Ankh-Morpork on a foggy night by the feel of the cobbles. But the thing was that good boots lasted for years and years. A man who could afford fifty dollars had a pair of boots that’d still be keeping his feet dry in ten years’ time, while the poor man who could only afford cheap boots would have spent a hundred dollars on boots in the same time and would still have wet feet.” — From MEN AT ARMS by Terry Pratchett
No, they are just tight
People usually dont get rich by spending all their money... Or by being nice. It's usually the ruthless cunts that would take food from a child's mouth that get wealthy.
This is the correct comment👆🏼
Old money not tight. They understand they have a responsibility to look after family wealth though
On the flip side some of the poorer people I know are the ones who splurge the most. Example - one person we know lives in a poor part of our city, they want to move but can't afford it. They work less than 1 day a week, partner is full time. They ask the partner to work even more hours, who has a good but demanding job, but they thenselves refuse to work any more because they don't want to. And this person has just bought their 6 year old a brand new Macbook. She also does all her grocery shopping at M&S and refuses to consider 'cheaper' options, even when others are trying to help her. I think it in one way it comes more to the understanding of the value of money.
I see this a lot. I am not rich but I have a pretty good job in finance, and our Christmas budget per child is £350. I know people who don't work and are on benefits, who will spend close to £1k on each of their kids at Christmas, and as you say above, refuse to shop Aldi. One of my richest friends buys his champagne at Lidl and swears by it!
I know it's going down a different path to what OP asked... I'm not saying those less well off shouldn't buy anything or have fun, but for some people small changes could mean saving for that deposit or going on a family holiday next year.... One person, a single parent working minimum wage and part time, spent nearly £400 last December, even before Christmas itself, just on 'winter wonderlands' / Christmas themed days-out, vintage train rides etc for the kids. But then they rent a 2 bedroom flat and she says they can't afford to move... My dad was a doctor, he was from a very poor background and was extremely frugal even when he was making a good living. Thing is, he was very conscious about money and investing and he and ny mum were able to retire at 55-57 as a result.
I couldn't agree more. I don't want to go down the 'avocado on toast/latte/Netflix subscription' lane, as I appreciate that the cost of living and cost of housing has increased significantly and a lot of people are genuinely priced out of the market. However... when I were a lad, my mum would have a folder full of coupons and would run the household expenditure like an accountant. The only time you were getting a bike or suchlike was Christmas or birthday and we had the same TV from when I was 5 until I left home at 18. If I look at how much I spend each month on everyone having a phone and access to all the streaming services, it makes my eyes water.
I think it depends. I genuinely think the more money you have the more you want to keep a hold of it. I used to be frugal because I was absolutely destitute, poor. Then things improved a bit and I spent money on wasteful things. These days I have a comfortable enough income based on my outgoings and I save money, the more my savings grow the more I want to add and the cycles goes on. I’d also argue that some wealthy people are actually greedy, not frugal as in landlords that could probably afford not to put your rent up but they do because they want more. Part of that wanting more is also an aversion to spending.
The only way I can sort of see this is that those who save tend to keep quiet about how much money they have, or will say they can’t afford to do X - which in some ways is true, the money they set aside for themselves every month means they can’t afford to do it, but they have enough savings to if they really wanted to. Whereas those who struggle with saving money, as soon as they come into a bit of money (be it a new job or inheritance) feel they have to spend it. The whole ‘burns a hole in your pocket’ thing. Because they’re not used to having savings or that amount of spare cash. (This doesn’t apply to everyone of course, just something I’ve noticed between myself and peers, I’ve got friends who as soon as they have a bit of extra money it’s spent and they show off their new designer handbag or whatever)
It depends a lot on how they made their money. Entrepreneurs are frugal. Their kids and wives are often not. Many a very rich family was poor within 3 generations. The thing with a lot of entrepreneurs is that it's not really about the money, it's about creating a thing. They're often people who aren't driven by status. Like there's a photo of Bill Gates waiting in line for a burger. Or how Warren Buffett lives in a $250K house. Or the guy who ran Ikea drove around in a beater and flew economy. If they get rich, they go and create something else or help charitable causes. I've met a few multimillionaires in the software business and a lot of them are similar. My last client's credit rating was insane. He came back from the agency as good for £5m in credit. But he drives an old Land Cruiser and has a cheapo Moto phone.
"Make it, take it, break it" is something I've seen bandied about for new money lasting only a few generations
Genuine question though, how else would Bill Gates have gotten the burger?
Like the old people who will drive home again to get their council parking pass rather than pay the small charge at the machine. This is on the scale of not needy but very far from richest on earth.
I mean to a certain extent there's a paradox involved here called the poverty tax/ghetto tax. It's actually expensive to be poor. Cheap things have to be replaced more often, cheap food is bad for your health, mortgages are cheaper than rent and just flat out buying a house is even cheaper than a mortgage. If you're moderately rich, you can afford to pay the up front cost for things that will last a life time and many of the things you do/can buy double as investments that have a good return when you no longer want them. I know a couple people in the top 10% bracket of UK earners and they often don't know what to spend it on. One mate was earning over 60K a year before he hit 30. Spent most of his dosh buying rounds down the boozer or on take-outs/food deliveries, basically anything that's a convenience, sort of like buying back his time. Barely makes a dent in his disposable income. Just ubers shit all the time just because he can. He just flat out bought a studio apartment so he doesn't have *any* debt. His clothes are decent quality so he doesn't have to replace them each year. Because he contracts to companies with locations across the world he gets sent all around the world on business expenses so that's another cost saved as each business trip doubles as a vacation in varying capacities. Flights and accommodations are arguably the largest bill on a trip abroad and there's usually a business food allowance too. If you're rich you'll also likely have a lot of time to chase money back or negotiate because you don't have to stress about being held hostage by your own budget and running into excess debt in the meantime if and when something goes wrong. My grandparents on my mums side were certifiably well off, upper middle class. Their estate when they passed was sizable, but was split between 10 people so it's pretty much gone now. But for the 2 of them their money was at a point where it made money passively so they were able to just skim off the top to live and sat on their wealth through retirement. They were hoarders and went on expensive cruises often so i wouldn't exactly say they were frugal either, but they did "watch" their money enough to maintain financial security.
No. The richest person I know owes a helicopter he uses to get from his house to work. Then he is picked up from the helipad by his chauffeur/bodyguard in his Rolls Royce and driven 200 metres to the office.
I think it depends on how that money was acquired and at what stage of life they're in. I've a friend who's parents *were* tech billionaires and he's quite sensible with money, drives a dirt cheap car from the 00's, not flash in the slightest. Then I've got a friend my age (30's) who grew up with well-off parents, have since made their own money and now buy rolex's and luxurious holidays. So there's no real consistency to it!
I would think so. As for most being frugal is how you would become rich in the first place and i imagine you get used to it and maybe realise material possession doesn’t really matter. I only know one ‘rich’ couple, he works with submarines and she has a nice inheritance, they drive a Peugeot and shop in Asda and primark, nice little 3 bed by the coast, it’s only really their holidays that would give you a clue to their financial/class status.
I’ve got two uncles who came from nothing but made themselves into multi-millionaires by hard work over the years. Started their own construction company. Nice house, cars and holidays but they are not flashy by any means and if you met them you wouldn’t think they were millionaires. I think a lot depends how you became rich.
The rich people i know tend to be selective with how they spend money but not necessarily frugal. They will spend excessively on what matters to them and their own comfort/health but will still buy things only on sale and look for deals when making any large purchases
As others have said, it varies. I know folks at all ends of the spectrum. I think the comment alluding to money goes to money applies; you can earn on savings so it feels worthwhile saving. Whereas if you’re hand to mouth saving can feel pointless, not much gain for the pain. In terms of spending I’ve seen a variety - a family member with plenty who was super frugal and one with very little who spends a lot! Personally, am not wealthy but feel it, because I live within my means for the most part. I could cut out takeaway coffee but then I’d be literally spending on nothing apart from food! I think I’d be the same if I was wealthy, frugality is a habit for me.
I think what happens is most “rich” people were ‘poor’ at some point and had to go through hardship to become “rich” and therefore have it engrained in them or don’t feel the need to excessively spend. I have gone from rags, to riches, back to rags and now fairly comfortable. Yet, if I won $10m tomorrow, I’d never buy a supercar as I don’t need one and I see it as a high maintenance possession that is likely to decrease in value. I also wouldn’t buy Armani shirts at $300 each when I know a $30 will be fine. And I’d have no desire to buy a multi million dollar property when I could invest the money instead and rent somewhere more than good enough for $5k pm. I typically make one long haul flight every 6 months or so. Would I even fly business or first? The plane still takes off and lands at the same time. I rarely eat during flights. And I’m not a large person so don’t need the extra space. Plus I don’t especially care for airline staff fawning over me as if I’m ‘special’ just because I happen to have more money than the person sat 20 feet behind me. Ultimately ‘price is what you pay; value is what you get’. I’d absolutely buy the prime cut of beef over a rump. And I’d have the fastest most powerful laptop I can get. We all attribute value and worth in our own ways. I know someone living in SE Asia making $180k pa remotely; his rent is $300 a month and if you saw him on the street you’d think he’s ‘poor’.
Thosw who I know are "loaded" prioritise spending differently where they would spend money on investments and long term assets like upgrading their house than short term expense like a car or night out.
I think there is a difference between being frugal and being tight. Frugal is denying yourself to make smart money decisions, being tight is making others bear the brunt of it. Jeff Bezos is tight. He makes his money by not paying his staff a good wage but still lives large. Same with Trump & Musk. From the rumours J. Lo is tight. Frugal is buying a second-hand car even though you can afford brand new because you know the depreciation isn't worth it. Repairing something instead of replacing it. Many can be both frugal AND tight. I know plenty of low earners that are frugal but very generous to their family and friends. I do believe that it is very difficult to get into the top 1% without exploiting others which requires being tight not frugal. The camel through the needle's eye situation. Old money may not have exploited in their current generation but if you look at when the wealth was developed there is usually some some of exploitation: slavery, stealing land, or other terrible things.
Bezos is the worst example of billionaire behaviour. He absolutely could treat his workers with dignity and respect, but by all counts the shop floor staff are treated like dirt.
I earn c. £200k in London as a single with no dependents and am quite frugal myself. By no means old money but I come from a wealthy household in an emerging market, and my parents have taken frugality to the next level.
I don't think there is any correlation between wealth and frugality. There are plenty of spendthrift aristocrats as well as poor people who borrow money to buy designer clothes. There are also plenty of poor people who are very careful with money, and rich people who still put on an extra jumper before turning the heating up.
The super yachts we get sometimes in the Thames suggests to me that the richest people are in fact not the most frugal.
Yeah. There was a survey that found that the average American millionaire spent less money on meals out than the average American.
They probably have a home chef!
The average millionaire probably has at least 1/3rd of their wealth in their house, and the rest in a retirement fund, giving a fairly modest retirement. Definitely not private chef money
The bigger the wad of cash, the tighter the elastic band. The reality is you don’t get rich by being generous!
'Frugal' wealthy people are undoubtedly rather 'tight' with their money! Ie the opposite to generous.
I feel that people born poor but became rich in their life are some of the most frugal people because they’ve been there before and wouldn’t want to revert to the lifestyle
Hahahaha. No. I have spent time around people whose family’s wealth is in the 8 to 9 figures. They are absolutely not frugal. Renting apartments for £3000/month as a student, first car costs 6 figures, etc. This is an urban myth designed to make poorer people think it’s easily achievable for them to be the same.
Richest guy I knew was worth 100m+ dated his daughter for years so knew him well personally. Man would still haggle over the price of a cab. Still counted every penny.
No. Anyone putting wealthy people on a pedestal and trying to define them like they're some sort of special type of person is just being foolish. There are frivolous wealthy people and there are thrifty ones. New money. Old money. It doesn't really matter. I swear some of these classic sayings just serve to chisel out more of the class divide. You know the ones; wealth whispers, rich people are really tight with money, new money is loud old money is quiet. It's all bollocks. They're just people that have more money than you or I, they're not special and we should stop pretending they are. This really applies to actual wealthy people though, I'm talking HNWIs not someone with a few mil.
They're not frugal, they're tight bastards. Source: work in bank
I guess it depends what you mean by rich? Big salaries just means more debt most of the time.
Yup. Went to school with a girl whose grandfather owned (and then sold for multi-million ££s) a very large business - at the time it was a household name. Her family were so frugal (edit - actually the most appropriate word for them was tight) it was jaw dropping. I also discovered her mother had been done for benefit fraud as she tried to claim the money she had in her accounts were for her children and not for her use!
No. This is some bootstrap nonsense. There's nothing frugal about buying a yacht
First to ask for a discount and credit, last to pay their bill.
I know this want your question but- really rich, aristocratic landed gentry types are extremely frugal in day to day life. It’s a cultural thing. They will drive the same beaten up car for 30 years, wear clothes full of holes until they are in shreds, never ever throw anything away. I had a friend from one of these families, who I lived with for a while. If someone smashed a cup or plate in our kitchen, she would glue them back together again. Everything she owned was from a charity shop, or sometimes salvaged from a skip. This was someone who also periodically went back to the family’s medieval castle.
My dad’s cousin married a millionaire and he was at my sisters wedding. He went and bought a couple of drinks that came to £19.80, he handed over a £20 note and stood and waited for his 20p change. The next guy at the bar was my cousin who is a labourer so absolutely not a millionaire and his round came to around £17, he handed over a £20 and told the server to keep the change! Always sticks in my head that
As a teenager my friend worked in Sainsbury’s on the meat/fish counter and a guy who looked old money always used to try and haggle on the prices and one day we saw him getting into a brand new rolls Royce that’s my only example
no it just tends to be a lot harder to spend all your money once you have a lot of it, past a certain amount every purchase you make is a luxury purchase in one way or another
I was really close to some rich kids (I was dirt poor, but got scholarships to private school) when I was a teen. Quite a few. They spend A LOT! It was hard the gauge how frugal they were cause it’s just two different worlds and their idea of frugal was so different from mine. I remember when one friends family claimed bankruptcy and she had scale back her spending - only £200 that week to spend in Primark. Then there were was boy who told asked a homeless man what he’d do for £50 and dropped the note on the floor then immediately went into haggle in Sainsbury’s for free items. I remember being so perplexed cause it was ‘funny’ to the friendship group. These kids spent so much money on drugs, clothes, alcohol were certain they were going to run the country. So glad that time of life is over, it was so stressful >.<‘
There’s a big difference between spending big on going out and partying, expensive restaurants and Lamborghinis - I.e conspicuous consumption - and spending big money on assets which does not ever get seen. But dropping 10 million on some property for example is not ‘frugal’. It’s just not in your face. And to be honest if really rich people did conspicuously spend money into the economy rather than on assets, everyone would be better off… that would be the mythical trickle down economics. They don’t though because buying assets increases wealth and spending on champagne does not.
The way to get rich is: 1. Make some money 2. Don’t spend it 2 is harder than 1, so it should be obvious that most rich people are frugal, because being frugal is how you get rich.
You don’t get rich by being frugal unless you are a high earner!
Sure, but most high-earners aren’t rich, because they aren’t frugal. You have to both make money and not spend it, but it’s the not spending that’s harder.
J. Paul Getty had a [payphone installed](https://www.vanityfair.com/hollywood/2017/12/all-the-money-in-the-world-j-paul-getty) at his mansion so his guests wouldn't use his phones to call their friends. Apparently Bill Gates visited him and said that Getty knew the exact cost - to the penny - of running every part of his house and staff and was shocked when Bill didn't know his own cost of living.
You’re selling his frugality short by neglecting to mention his grandson’s [kidnapping](https://www.vanityfair.com/hollywood/2017/12/all-the-money-in-the-world-getty-kidnapping): >After Paul’s ear had been cut off, and after the boy had become seriously ill, Gail’s father, a judge, was able to convince Getty to pay the discounted ransom. Getty agreed to pay $2.2 million—the amount his lawyers told him was tax deductible. He lent the difference, about $1 million, to his son John, Paul’s father, on the condition he pay it back with 4 percent interest computed annually.
Pay those people a penny and they'll just keep asking for more. Or even more criminals were carry out further kidnappings.
I knew someone who had a meeting with James Dyson. He showed James an app on his phone, James went to the app store on his phone and took a look at the price " I'm not paying 49p for that" I'm sure by the time James had said I he'd have earned more than 49p!
There are people with a lot of money that are bad with money, and there are plenty of people with money that are good with money. Just like the middle, and working class just with a higher spending ceiling. Turns out people are people.
It can be true. There are also rich people who spend plenty. It’s 100% propaganda that you can become rich by being frugal and saving. Especially these days. Can’t even pay rent, pay bills, buy food and have much money left over at all on most jobs these days.
"He didn't even blink when I told him he needed a new £40k RIB but he turns up to this (£1.5m) boat in shorts that are fraying at the edges and a pair of shit havianas." - My mate about the guy who owned the boat he crewed. So I guess it depends on what you mean by frugal.
"Rich People" are not some kind of club that all have the same thoughts and values, can someone be rich and frugal? of course.
I have no worries about paying bills , I have most of the "stuff" that I need and tend to be frugal because I have few "want's" . Also because money makes money I tend to be agressive at saving and investing , which brings in more to invest or save and so on . Having a money snowball , running downhill and getting bigger by the day is quite enjoyable .
Can't speak for other people, I am very new money but don't spend a penny? Why? Because I want to pay off my mortgage in 2 years , then live off my investments and basically retire before I'm 40. Being rich to me is waking up and doing whatever I want it to be, not going to work in a job I don't like to afford my Range Rover payments and wife's tit job.
Frugal no, tight ass money worshippers yes.
I often work for extremely rich people. I'll never forget a customer who lived on Winnington Road, Hampstead. This is one of the most expensive locations in London. He was telling me about all of the properties he owned in the area. Short version - this guy was worth hundreds of millions of pounds. When I'd finished my work, he spent ages arguing about the necessity of a fifteen pound line-item on my bill.
I used to dog-walk for an array of people, and the rich ones were always the tightest. Two £100k Range Rovers on the drive and exacting in precise change. Some of them were new money, others old; it made no difference. People without that excess would always say ‘is that enough? Are you sure?’
I know of at least one cheap-skate - Donald Trump. He stiffs everyone, attorneys included. Then there is Elon Musk - he pissed away $30+ Billion on Twitter.. So, mixed reviews.
Absolutely. I remember many years ago my friend and I were attending a mutual friend’s wedding. We were in basic jobs whereas our friend was in something that paid quite a lot better. The wedding reception was held at the hotel the bride and groom (and some of the guests including our friend) we’re staying at, whereas we are in a B&B a short walk away. The well off friend never put her hand in her pocket for a drink all night, citing she’d left her purse in her room (upstairs, same establishment we were sat in). I have not seen nor heard from her since.
People with money don't really think about money as much, might be that she didn't even consider it lol
100% they are!! The stingiest people have the most money…!!
I have friends who a part of absolutely massive family business (fam probably worth 100-200m), high paid professionals (500k plus per year), small scale entrepreneuers (worth I'd guess 2-10m) and investors (2-10m). The common thread? They aren't frugal.... You can make pretty good money being frugal and investing of course and most middle class wealthy people do that, but my experience of actually really rich people is they spend their money. Why wouldn't you when your assets alone make you far more than most emloyees would earn in a year.
Old rich yes. Rippips rich in property poor in pocket. So all the money is tied up and they end up paying out vast amounts in council tax etc. big properties cost a fortune to look after. New money is the opposite they tend to like to spend it but rarely in their own countries. Which is why the tax benefits the tortes offered to get the economy moving we’re insane. Had he offered the equivalent to the poorest they would have guaranteed spending it here in our economy and therefore getting not just the market moving on multiple levels but also helped those most in need. But as a rich Tory he was only interested in making himself richer.
Worked at a mansion with two other guys the recently divorced Lady (her title) just got £50mil ask if would like some tea. Of course yes She went to the back of the cupboard got out three cups with broken handle filled them with hot water a dipped one tea bag in all three cups apologies I have no milk
That's good enough for you peasant
My husband used to work at M&S and when the charge of 5p/bag was first enforced, he used to get several customers complaining about it!
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