Top 7 Secrets of 4 Billionaires Who Live Below Their Means

Most of us, whether we'd admit it or not, have a wild fantasy about striking it rich. Having more dough means we don't have to worry about saving enough to send Junior to college. But on top the necessities, we could buy a hybrid with heated seats, head to Switzerland on a moment's notice, or never fight with our spouses about budgets. Money seems to be both a solution and fixer of all things stressful. Or so it seems.

I can't completely argue that a fraction of that statement is true. We need resources to survive and money definitely tops the list of must-haves. But we get a peek at some of these folks living out our fantasies (think MTV Cribs) and observe train wreck after train wreck of financial success preceded by an equally impressive crash. Just how dim-witted does Nicholas Cage, multi-million buck movie mogul, have to be to end up in "financial ruin"? We see Michael Jackson, Donald Trump, Mickey Rooney and the like made dough beyond our comprehension and then filed bankruptcy.

Why do these celebrities turn into blithering, conniving, thieving idiots when they starting making truckloads of money?
Financial guru, Dave Ramsey, has some insight into this. He began his career by wasting over a million in just two years before realizing that, whether he had one or one million dollars, spending habits follow your bank account--for better or worse. There are a (very) few individuals who rake in cash by the millions, er, billions, and steward it equally well. We need a spotlight on these folks since they're too lame and too ugly for reality TV.

Warren Buffett
Among the well-known billionaires in the world, Warren Buffett always lands in the top three players. The "Oracle of Omaha" has continued to pull in billions every year yet only draws a personal $100,000 salary from Berkshire Hathaway. Buffett continues to live in a ridiculously modest 5-bedroom house that he bought decades ago for just $31,500. He flat-out doesn't care about Trump's newest splurge or Bill Gates' multi-building oasis. He uses his resources to generate more rather than flaunt. While his personal life hasn't always been stellar (Buffett and wife Susan were separated several years until her death in 2004), his financial savvy and generosity serve as the bedrock of his spending and saving habits.

Rick Warren
Selling over 30 million copies of his best-seller The Purpose Driven Life, didn't alter this California pastor's spending habits for himself. When this devotional, Biblical-based book became wildly successful in 2002, one of the first things Warren did was to pay back his annual $110,000 salary to the church for the previous 25 years. He now works for free. Still not generous enough? Warren and his wife Kay give 90% percent of their income to church and other social efforts (like the first Evangelical effort to fight AIDS) and live on 10%. And they have continued to life in the same house.

Carlos Slim Helu
This Mexican telecom giant makes big headlines around the world, not for buying lavish yachts or towers in Dubai, but for his generosity and parsimonious habits. Born of a Lebonese immigrant, Helu started from humble beginnings and then capitalized on the privatization of the national telephone company in the 1990s. Today he is the richest man in the world, worth $53.5 billion. And how does he spend it? Recently Helu dropped $65 million on genomic medicine research. He has not, however, relocated to a posh new crib representative of his status. Helu continues to reside in his 6-bedroom house he's lived in for the last 30 years and gathers with his 6 children and grandchildren for dinner every Monday night. Plus he drives himself to work everyday, despite mounting threats of kidnapping. The man is just plain frugal and always has been.

Ingvar Kamprad
While you might not be familiar with Kamprad's name, you've definitely heard of his brainchild IKEA. The founder and CEO of the Swedish born company has always been notoriously frugal, and shoppers get a sense of cost cutting while browsing through IKEA. Customers wander through smartly decorated room vignettes, marking pickup locations for furniture and accessories, then collect them--flatbox-style--in the warehouse.

The process of minimal labor and minimal pricing was designed to encourage self-sufficiency while promoting top-notch design. Ingvar Kamprad delights in taking public transportation to visit his stores, flying economy, and dressing casually. When he needs private transport, he heads out in his 10-year-old Volvo. Kamprad's vision for IKEA has always been to bring quality style at low prices for all people, and it borders on the religious. His thrifty and philanthropic lifestyle lies at the foundation of the corporation.

Just what can we glean from these powerful and sober billionaires? Check out these 8 secrets we desperately need to learn:

1. Don't spend what you make.
Can Warren Buffett afford to buy another house? Absolutely. One in every town in every state in the Union. Would it be motivated by desire for status or for financial gain? Ask yourself before you purchase another non-necessity. Buffett didn't start out rich either.

2. If you're smart with $1, you'll be smart with extra zeros.
Enter celebrity stupidity. If you're prone to "live today for tomorrow you might die" thinking, adding those extra placeholders will just mean a bigger, harder financial fall.

3. Drive a reliable, but used car.
New cars are a complete rip off. Each one of these guys drives an old car. People who make money and keep it follow the same tactic.

4. Admit your failures.
Insidious pride always worms it's way into money. It takes a grownup to identify your screw ups, learn from them and then, most crucially, stop doing them. IKEA guru Kamprad is fond of saying "people who don't make mistakes are asleep."

5. Toys are a time waster.
Just why don't any of these big time earners purchase the fun stuff? They've realized that it's just an extra hassle that "gets in the way." Your individuality and soul are not entwined with the stuff you possess. If you don't believe me, wait until you move from an apartment to a house. That small upgrade becomes a huge responsibility and requires enormous commitment on many fronts.

6. Stay away from credit cards.
In case you've been under a rock the last two years, most us now know that interest is an all-consuming black hole. Debt keeps you up at night. Debt makes you feel like a slave. And at some point you forget just what was purchased in the first place.

7. Invest in value, not in flash.
Turn your spending into wealth generation rather than hedonism funding. Seek the bargains, scope out hidden gems and invest wisely.

8. The Joneses are probably broke.
Don't compare yourself to them. Enough said. If it looks too good to be true, it is.

Photo by Guesus