What did Benjamin Franklin, John D.
Rockefeller, Andrew Carnegie and Warren Buffet have in common? What did they have in common with nearly every self made wealthy person? We will explore the answer to those questions in this article.
Dr.
Franklin From his earliest days Benjamin Franklin watched his expenditures with great care.
For a time he ate a vegetarian diet to save money because meat was so expensive.
He did not drink alcohol often because of the expense.
He kept careful accounts of his expenditures and reviewed them every day.
While he was not by his own admission perfect during most of his life he strove to live below his means.
As a result he was able to retire early in life and spent the last half of his life living in comfort pursuing his scientific interests, politics and in the salons of Paris and London.
He was one of the richest men in America.
John D.
Rockefeller From childhood John D.
Rockefeller was careful about how he spent his money.
He carried with him throughout his life a small notebook where he recorded ever expenditure no matter how small.
He kept track of every penny he spent.
He taught his children to do the same.
He taught them to follow his formula: to give 10% of all his income to his church, to save half the remainder for investments and to live off the remainder.
Rockefeller went on to found the Standard Oil Company and to monopolize the oil industry in the United States.
He established the first true modern corporation and became for a time the richest man in the world.
He never wasted a cent.
Andrew Carnegie Andrew Carnegie came to the United States a very poor boy, son of an immigrant textile weaver who could never hold a job.
Carnegie himself began working as a small boy and saved every dime he earned.
What he did not give to his mother for family expenses he either saved for investments or spent on books to educate himself.
By the age of 18 he had helped his mother pay in full for their family home and had founded his first business.
Carnegie also kept careful track of his expenditures and although he very much enjoyed the finer things in life he never spent more than he earned.
He became the richest man in the world in 1908.
Warren Buffet Warren Buffet grew up in America's heartland.
While his family was comfortable they were not rich.
From his early boyhood he ran small businesses and learned to invest the money in stocks.
Throughout his life his tastes remain simple.
He lives today in the same simple home in Omaha that he bought in the 1950s for $31000.
He drives his own car and does not use a cell phone or a computer.
He does wear tailor made suits and does own a luxurious home in California, but for the most part lives a very modest life.
His personal income is usually $100,000 a year even though his assets are in the billions of dollars and he is usually rated the second wealthiest man in the nation behind Bill Gates.
What all these men have in common with most of the self made wealthy men and women throughout our history is that they control their expenditures.
They live within - or rather below their means.
Before they became multi-millionaires or billionaires they spent very frugally and even once they became immensely rich they avoided ostentatious expenditure.
Rather than spending large amounts of money they invest most of what they earn and give the rest to charity in large amounts.
Contrast this with most less-successful people who routinely live beyond their means, amass consumer debt, continually buy automobiles and homes they cannot afford and spend money unnecessarily.
Learn from the most successful men and women - live well within your means and put your money to work for you.
Learn how the rich get rich - live within your means.