There is a very thin line between living a frugal life and being called a miser. But people generally have a tendency to club both these together and are usually said in the same breath. Yet, there is a world of difference between the two.

Simply put, a frugal person is someone who lives simply, not denying himself anything in life but at the same time, questioning himself at every juncture when he is tempted to buy something whether he “really” needs it. The question is, “Do I need it? “ For eg: someone living in a 2 BHK might be looking at a 3 BHK but just to appease his peers but not really needing it and hence might decide to forego the buy.  This is sustainable spending.  Why breed costs which will make living later in the future, when we stop earning, an unaffordable standard of living.

On the other hand, a miser is someone who denies himself buying things even though it is a necessity just to save money. Like a person might need a pair of good shoes but yet, he refuses to buy new ones as he simply loathes the idea of money going out of his pocket. For him spending money is a big no-no, even on himself so giving money for philanthropy simply does not arise.

So a frugal person spends his money wisely while a miser merely hoards. And this distinction has become very vital to understand in today’s time when austerity and spend cuts are the mantra for survival. 

Richard Branson of Virgin Airlines is often compared buy the Indian media with Vijay Mallya given their larger-than-life images. But both could not be more different. He said very famously in a TV interview with NDTV when questioned about Vijay Mallya and his flamboyance – “I think flamboyance is dangerous. If you do show your wealth to the world too much, I think that's dangerous for any business person and I think you've got to get that balance right and particularly in somewhere like India, where there are a lot poor people.” And thus in a country which has more poor than rich, families who have wealth displaying it with no responsibility is morally wrong. Yes, one has the right to one’s own wealth but to be blind to the state of people around and live ostentatiously is being irresponsible.  This is particularly about Mukesh Ambani and his Antilla.

This distinction has also become especially important because we seem to be raising a new generation which thrives on consumerism.  Earlier, people used to buy what they could afford and lived within their means but today, the yuppie generation buys cars and homes much beyond their realm and a lead a life style which could make one baulk. A credit/debit card and EMI generation. And for them, frugality is not a human value but a trait of being a miser.

In India when it comes to frugality, Narayana Murthy and Azim Premji come to mind and world over there are many billionaires who live life frugally.

A quick look at some of them for inspiration and help us lead a sustainable happy life.

Warren Buffett, chairman and CEO of Berkshire Hathaway

50 years ago he bought a house at Nebraska, a 3 bedroom apartment and he continues to live there. He does not own a yatch or a Gulf Stream and he got married the second time at his daughter’s apartment at Omaha. And he is one of the biggest contributors to charity on this earth.  He is also literally begging Washington to hike his taxes.  When it comes to entertainment, he dislikes splashy parties and trips and spends his time playing bridge.

Ingvar Kamprad, founder of IKEA

He drives a 15-year-old Volvo and always flies economy class. His home is  decorated mostly with inexpensive IKEA furniture.  Kamprad and his wife are often seen eating in cheap restaurants and haggling over prices at the market. Some time ago, when he  arrived at a gala evening recently to collect a businessman of the year award, the security guards refused to let him in because they saw him getting off a bus when he arrived. His eagerness to save money extends to his visits to London, when he shuns taxis and prefers to use the Tube or buses. And when he was called to cut the ribbon for a statue erected oh him in Sweden, instead of cutting it, he untied it, folded it neatly and handed it to the mayor, telling him he could now use it again.

Tim Cook, CEO of Apple

He famously said, “ Money is not a motivator for me”. He lives in a 2,400-square foot condo in Palo Alto, Calif., which he bought for $1.9 million in 2010. He lives humbly and when questioned about it, said, “"I like to be reminded of where I came from, and putting myself in modest surroundings helps me do that.”

Azim Premji, CEO Wipro

He made the largest lump-sum donation in India’s history, pledging $2-billion to support rural schools in India in December. He now flies business class on long-haul flights but economy when flying o domestic circuit. He used to drive a Ford Escort, then a Toyota Corolla and now it’s a Volkswagen Skoda Laura. He is still arrives at the office at 6 a.m., works until almost 7 p.m. and toils after dinner and on weekends. He treks in the countryside, alone or with companions, on the weekends to clear his head. He wears non-branded suits and flies economy. Paper plates were used at a luncheon in honor of his son Rishad’s wedding a few years ago.

Narayana Murthy is another living example of frugality but such industrialists are too far and in between. In a country with so much poverty, it’s a pity that we have more wanting to flash their wealth rather than play it down.

This is indeed simple living and high thinking and probably also explains how they became and stay even today as billionaires. Most feel, “what is the point in earning money if you cannot spend it?” But then the point is earn but spend it right, not to depict a life style which might not last when your money dries up.