More on frugality
November 29, 2007
Quoting this Forbes article:
Stanford professor David Cheriton made his billions by introducing Google (nasdaq: GOOG – news – people ) founders Sergey Brin and Larry Page to the venture capitalists at Kleiner Perkins Caufield & Byers. He was rewarded with a sizable chunk of Google stock.
Canadian Cheriton says he prefers to ride his bike around his Palo Alto, Calif., neighborhood, and relies on an old Volkswagen (other-otc: VLKAF – news – people ) van or a Honda (nyse: HMC – news – people ) sedan when he needs to get behind the wheel. He says he only flies commercial, prefers jeans to designer clothes and claims to reuse his teabags. He also cuts his own hair to save time going to a barber. His indulgence: two windsurfers.
When contacted about this story, Cheriton cited the Wikipedia definition of frugality: “The acquiring of and resourceful use of economic goods and services in order to achieve lasting and more fulfilling goals.” He says, “That’s certainly something I aspire to.”
November 30, 2007 at 9:05 am
We talk about money and the diminishing return of extra luxuries all of the time and I believe that once the basics are covered, home, car, enough for good food, etc., that additional material things add very little to your actual enjoyment of life. A Kia with a decent radio and air conditioning that works is really almost the same experience as a shiny new mercedes. You don’t sleep any better in a 2,000 sq.ft. bedroom than you do in a 200 sq.ft. bedroom. Flying coach can be a little tight sometimes, but paying millions per year to have your own jet so that you are more comfortable in flight is a foolish waste of money, although I have to admit, it does make me happy when we get a free first class upgrade. Having homes all over the country is also a waste. Here’s a perfectly beautiful home empty most of the time so that someone can use it occasionally when they have time to get away, is also foolishness. I think about Bill Gate’s life all of the time. What does he have that the rest of us don’t have? He certainly has to watch what he eats or he’ll gain weight. If he doesn’t sleep well, he’ll be tired the next day. He has to get a haircut now and then, he probably gets indigestion like the rest of us, he has the same crummy TV shows to watch, the same movies, and he also has this tremendous pressure to do good with the billions he has earned. I honestly don’t think his life is any better than the average guy who makes $100,000 per year. I guess there’s an aspect to his wealth that would be nice. He has the freedom to invest in good causes and help others. That must add a nice dimension to his life.
Anyway, as one who has been caught up in the regular financial rat race of making money to acquire nicer things, I think I’m finally realizing that I want to focus on other things and relax in that regard. I want to be smart about investments in the next ten years to prepare for retirement. I want to focus on health and family fun and closeness. I want to read good books, paint, travel a little bit and do some good in the world. I also want to be able to help my kids get on their feet in anyway I can. Life is short.