mark zuckerbergmark zuckerberg

Mark Zuckerberg may have a $80 billion fortune, but that doesn’t stop him from shopping at Costco.
Drew Angerer/Getty Images


Mark Zuckerberg doesn’t need to hunt for wholesale bargains at Costco, but that doesn’t stop him from doing it anyway.

The billionaire Facebook CEO was spotted in the electronics section of a Costco store in Mountain View, California, alongside wife Priscilla Chan on December 13, TMZ reported. But he’s not the only billionaire that goes out of his way to pinch pennies. Many millionaires and billionaires have something in common, aside from having high net worths: They’re frugal.

It’s this characteristic that helped them become rich in the first place, according to Sarah Stanley Fallaw, director of research for the Affluent Market Institute. She co-authored “The Next Millionaire Next Door: Enduring Strategies for Building Wealth,” in which she surveyed more than 600 millionaires in America.

To identify characteristics that are the most predictive of net worth, Stanley Fallaw conducted two studies that included a group of individuals with net worths ranging from $100,000 to $1 million and a group of high- and ultra-high-net-worth individuals.

She found that six behaviors, which she called “wealth factors,” are related to net-worth potential, regardless of age or income. One of those is frugality — a commitment to saving, spending less, and sticking to a budget.

That’s not surprising when you consider the habits of some of the richest people: Warren Buffett is notoriously frugal, and Richard Branson has previously said that displays of wealth embarrass him. The same extends to some A-list celebrities who rake in millions for their movies and TV appearances.

Here’s a look inside the lives of some famously frugal millionaires and billionaires.

Sarah Stanley Fallaw, director of research for the Affluent Market Institute, studied more than 600 millionaires for her book, “The Next Millionaire Next Door: Enduring Strategies for Building Wealth.”

the next millionaire enxt door




Courtesy of Amazon



One of those factors, frugality, came up several times during Stanley Fallaw’s research — many of the millionaires she interviewed stressed the freedom that comes with spending below their means.

wealthy face rich people


Francois Nel / Getty


Source: “The Next Millionaire Next Door”

“Spending above your means, spending instead of saving for retirement, spending in anticipation of becoming wealthy, makes you a slave to the paycheck, even with a stellar level of income,” she wrote.

rich people


Leon Neal/Getty Images


Source: “The Next Millionaire Next Door”

Several of the most well-known millionaires and billionaires built wealth by living frugally — a habit they continue to practice even after becoming rich.

monaco rich people


Shutterstock/IVASHstudio


Source: “The Next Millionaire Next Door”

Consider the billionaire Warren Buffett, who’s worth $89.9 billion and is currently the fourth-richest person in the world. Not one for lavish purchases, he spends relatively little money.

Warren Buffet


Steve Pope / Stringer / Getty Images


Source: Business Insider, Bloomberg

He previously told CNBC and Yahoo Finance’s “Off the Cuff” that he’s “never had any great desire to have multiple houses and all kinds of things and multiple cars.”

warren buffett


Dennis Van Tine/AP


Source: Business Insider

And instead of buying a smartphone, he uses a flip phone.

Warren Buffett

Warren Buffett tells former CNN host Piers Morgan about his flip phone in 2013.
CNN


Source: Business Insider

Buffett also famously pays only $18 for a haircut.

warren buffett


Rick Wilking/Reuters


Source: Marketwatch

And he doesn’t pay much for food — he spends no more than $3.17 on his daily McDonald’s breakfast and gets dinner at the modest Gorat’s steak house, where the menu items range from $3 to $41.

gorats


The Washington Post/Getty Images


Source: Business Insider

Then there’s “Canada’s Warren Buffett,” the billionaire Jim Pattison, who earned his nickname from his own relatively frugal lifestyle. Pattison is worth $6.17 billion …

pattison jim


Phillip Chin/Getty Images


Source: Business Insider, Bloomberg

… but, like Buffett, he keeps his wheels modest, driving a Dodge Ram 1500 Laramie truck around his hometown. The pricing for the 2019 model ranges from $31,695 to $56,495.

Ram truck


Angela Weiss/ACMA2012/Getty Images


SourceEdmundsBloomberg

His frugality partly stems from his upbringing: Pattison was born during the Great Depression and grew up poor, wearing hand-me-downs and living in “Vancouver’s gritty east side.”

great depression


Bettmann/Getty Images


Source: Bloomberg

“Most of the time, I didn’t have the money to buy anything that was any good, so I had to buy stuff that nobody wanted,” Pattison told Bloomberg.

Jim Pattison


Phillip Chin/Getty Images


Source: Bloomberg

The billionaire Richard Branson — who’s now worth $5.75 billion — also has modest roots. He’s frugal when it comes to luxury items, largely because he grew up in a middle-class family.

richard branson


Rick Wilking/Reuters


Source: The Guardian, Business Insider, Bloomberg

“The idea of having a possession that is there just as pure luxury, and is not actually paying its bills is something which I’d be embarrassed about,” he previously told The Guardian.

Richard Branson


Getty


Source: The Guardian

You wouldn’t find a lot of expensive artwork hanging in any of his homes — he prefers to buy watercolors at reasonable prices.

richard branson


Jason Merritt/Getty


Source: The Guardian

He also doesn’t spend much on clothes.

richard branson


Vincenzo Lombardo/Getty Images


Source: The Guardian

To Branson, the biggest luxury isn’t money: “If we’re talking about personal luxuries — and the luxury of being your own boss — the biggest reward is the amount of time one can find for family and friends.”

richard branson


Vincenzo Lombardo/Getty Images


Source: The Guardian

“My mom grew up in the Depression,” he told the Financial Times. “I don’t have a mahogany desk.”

Charles W. Ergen donor


Paul Sakuma / AP


Source: The Financial Times

Every day, he brown-bags his lunch, which consists of a sandwich and Gatorade.

charlie ergen


Kim Kulish/Getty Images


Source: Business Insider

Despite her $4 billion net worth, Judy Faulkner, the founder of Epic Systems, also resists the lavish life: “I never had any personal desire to be a wealthy billionaire living lavishly,” she wrote.

Judy Faulkner


Courtesy of Epic Systems


Source: Business Insider, Forbes

She reportedly has owned only two cars in the past 15 years and has lived in the same Madison, Wisconsin, suburb for nearly three decades.

madison wisconsin suburb houses


Henryk Sadura/Shutterstock


Source: Business Insider

Mark Zuckerberg — currently the fifth-richest person in the world, with a net worth of $80 billion — also lives a relatively low-key lifestyle.

Mark Zuckerberg


Getty


Source: Business Insider, Bloomberg

He and his wife, Priscilla Chan, famously chowed down on McDonald’s shortly after their backyard wedding in 2012 …

Mark Zuckerberg and Priscilla Chan


AP Photo/Manuel Balce Ceneta


Source: Business Insider

… and were spotted browsing at Costco in Mountain View, California, on December 13.

costco UK

Zuckerberg not pictured.
Alastair Wallace/Shutterstock


Source: TMZ

He’s also been spotted driving relatively inexpensive cars, including an Acura TSX, a Volkswagen hatchback, and a Honda Fit, all of which are valued at or under $30,000.

Mark Zuckerberg in his car


Getty Images/Kevork Djansezian


Sources: Business Insider, CNBC

Jeff Bezos is also known to live modestly.

jeff bezos


Alex Wong/Getty Images


Source: Business Insider

With a net worth of $118 billion, Bezos is the richest person alive, but he used to drive a 1987 Chevy Blazer. As of 2013, he was driving a Honda Accord.

Jeff Bezos


Getty


Source: Business Insider, Bloomberg

But billionaires, CEOs, investors, and businesspeople aren’t the only ones who live frugally. Some celebrities don’t act like they have millions to their names.

Wealthy woman traveling in helicopter


jacoblund / Getty Images


“I was always more interested in experiences over things,” she told Money magazine. “Things didn’t make me happy. I saved, saved, saved. But I saved to a fault.”

tyra banks


NBC/Getty Images


Source: MONEY via Business Insider

Her accountants told her she needed to spend money and had her set up a frivolous account, in which she had to budget to spend money on “stupid stuff.”

tyra banks


James Devaney/Getty Images


Source: MONEY via Business Insider

With the exception of his well-known car collection, Jay Leno — who has an estimated net worth of $350 million — is also quite the saver.

Jay Leno


Roy Rochlin/Getty Images


Source: Business Insider, Money

He has always tried to hold two jobs, spending the money from one job while saving money from the other.

jay leno


Tasos Katopodis/Getty Images


Source: Business Insider

Early in his comedy career, Leno also worked at a car dealership. He saved his comedy money and spent his car-dealership money.

jay leno car


Alberto E. Rodriguez/Getty Images


Source: Business Insider

When he hosted the “Tonight Show,” he saved all of his “Tonight Show” money — reportedly as much as $30 million per year, according to CNBC — and spent only the money he made from stand-up-comedy touring.

jay leno


Paul Drinkwater/NBC via Getty Images


Source: Business Insider

Likewise, Jennifer Lawrence, who was born to a middle-class family, has always been thrifty.

jennifer lawrence


VALERIE MACON/Getty Images


Source: Business Insider

“I was raised to have value for money, to have respect for money, even though you have a lot of it,” she previously said.

jennifer lawrence


Mark Davis/Getty Images


Source: Business Insider

Even after her rise to fame and consequently hefty payouts — she received $15 million for the 2018 film “Red Sparrow” and was one of the highest-paid actresses that same year — she lived for several years in the same three-bedroom apartment she got when she moved to Los Angeles.

Jennifer Lawrence


Juan Naharro Gimenez/ Getty Images


Source: Business Insider, Variety, Forbes

And she’s been spotted driving a Chevy Volt, which has a $39,000 price tag.

Chevy Volt


AP


Source: Business Insider

She also loves to clip coupons. “I still look for bargains when I go to the market,” she said in an interview.

jennifer lawrence


Raymond Hall/Getty Images


Source: Business Insider

The actress and singer Kristen Bell also loves coupons — she’s previously said she exclusively shops with them.

kristen bell


Getty


Source: Business Insider

She’s particularly a fan of Bed Bath & Beyond’s 20% off coupons. “I may or may not have stolen them out of my neighbors’ mailboxes sometimes,” she told Conan O’Brien.

kristen bell peoples choice


Alberto E. Rodriguez/Getty Image


Source: Business Insider

That’s pretty frugal for someone who reportedly earns $125,000 per episode of the TV show “The Good Place” — and that’s not counting her undisclosed earnings from the movie “Frozen,” which grossed more than $1.2 billion at the box office.

kristen bell the good place


NBC/Getty Images


Source: The Cheat Sheet

More:

Features
Billionaires
Millionaires
The Next Millionaire Next Door

Chevron iconIt indicates an expandable section or menu, or sometimes previous / next navigation options.

Read More