09 July 2015

How the rich and famous stay on top of their money

Picture the lives of the rich and famous and it’s easy to imagine round-the-clock high living with little regard for cost.

But people don’t stop being cash-conscious and savvy with their money just because they find themselves with a fortune. Indeed, for many of them, keeping a careful eye on their finances is part of how they became wealthy in the first place. Sometimes surreal, sometimes inspiring, here are just some of their money-saving tips.

Lady Gaga

The megastar songstress has openly admitted her love for a good deal, revealing on Twitter that she starts plenty of shopping trips with a hunt for coupons. "Why do people look at me like I'm crazy when I use coupons at grocery [stores]?” she asked. And she’s not alone. In an interview with 'Self Magazine' Hollywood actress Sarah Michelle Gellar has also spoken of her thrifty side when out shopping: “I take my reusable bag to Whole Foods so I get a discount. I go to Bloomingdale’s on double rewards day. And I always print my dry cleaning coupons before I go.” As these two know, the savings from couponing can add up quickly.

John Caudwell

With an estimated £1.7 billion in the bank, the businessman who co-founded Phones 4u could afford to drive any car he wants. But Caudwell would much rather take the bus or train, and cycle or walk the distances in between. He has spoken many times of his passion for pedalling and at one stage made regular journeys from his family home in Stoke to his office in London – a distance of 150 miles. Commuting by bike isn’t just great for fitness levels and the environment; getting somewhere under your own steam is a sure way to keep the bank balance healthy too.

Cherie Blair

She may share a £6 million mansion with Tony in Buckinghamshire, but Cherie Blair is no stranger to scouring eBay for the best deals. Her online auction successes include bathroom scales, Lego sets and a Magimix. And Cherie’s not averse to making extra money through the site as well – in 2010 she collected £10 for an autograph from her husband.

Michael Bloomberg

You’d expect the founder of finance giant Bloomberg to have a handle on how to look after money, and true to form Michael Bloomberg never spends unnecessarily. The ex-Mayor of New York has only owned two pairs of work shoes in the last 10 years – both black loafers – having them resoled repeatedly whenever they wear down. He may be worth a whopping £23.8 billion and able to afford legions of stylists for his meetings with world leaders, but Bloomberg knows what he likes, picks what works for him, and saves his money for other things.

Julia Roberts

The actress who famously went on a Beverley Hills spending spree in Pretty Woman is far from frivolous when it comes to buying clothes for her family. She’s been known to raid second-hand stores and charity shops to dress her kids – and why not? No child is born a brand snob – and most demand no more than clothes that are comfortable, clean and colourful. The same goes for toys. Shopping for ‘pre-loved’ items for babies and young kids is a real way to cut down on expenditure.

Warren Buffett

Warren Buffett’s £42 billion ranks him as one of the richest people in the world. Yet he still lives in the same house he bought in 1958 for only £21,000, enjoying a decidedly low-cost existence where indulgence is a night in front of the telly and a McDonalds. Yes, he could probably afford a palace of a place in every city the world over, but he finds no reason to leave his modest five-bedroom stucco house in Omaha, Nebraska. As Buffett mentioned in an interview with CNBC, “Standard of living is not equal to cost of living.”  Wise words to live by, indeed.

The key to savvy saving

The savviest savers don’t just know how to spend less; they know how to make the most of the extra money in their account as a result. Finding the right savings account for you can help to make it easier to save – and help your savings grow faster. That’s why Nationwide offers a broad range of savings accounts to suit any style of saving.

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