Comparing Billionaires

There are two billionaires that I talk about in this column, but truthfully, you’ve probably only really heard of one of them. The first, Donald Trump is, in many ways the complete opposite of our second billionaire. He is rich and famous. He seems to enjoy his significant wealth and is focused on cash—building it, investing it, growing it, and using it.
Trump’s show, The Apprentice is reflective of Trump’s tastes. He spends an hour each episode working on beating up some twenty and thirty-somethings who aspire to be his apprentice. Only the best will do for Mr. Trump and he quickly dispatches those who are not worthly of his apprenticeship. It is interesting, but perhaps it has something to do with their jobs. Trump, it would seem, from the beginning was focused on being a businessman.
Keeping Score
When it comes to business and finance, once the necessities of life are met, food, water, clothing and shelter, what I would term the supplemental luxuries come in. I think of these items as things that most people have, but are generally considered luxuries because you don’t need them to survive. A car, a house or condo that you own, and a computer, cable or satelite tv, and a cell phone are all examples of these supplemental luxuries.
Ultimate luxuries are things that are generally not even in the vicinity of “necessary” but are things that are fun to have. There is a line somewhere between supplemental and ultimate luxuries. Vacations, multiple cars, pricey dinners out, and investments are all examples of these types of ultimate luxuries. When you are a billionaire like Mr. Trump, it is all the same. Standards are different. And the way that a businessman like Trump measures himself is by comparing his luxuries to the next guy.Buying Happiness
It is not to say that Trump is unhappy. I think that people foolishly like to claim that money cannot buy happiness. However, I’ve seen very few people be unhappy about having too much money. But people who are poor are often worried about not having enough.
Our second billionaire’s name is David Cheriton. He became a billionaire by founding a startup in california and then investing some money in google when Google’s founders presented him with a search engine that already worked well even in its test phases.
Finding Similarities
Both billionaires have become rich as a result of business. Each of these men have a keen eye for opportunities and this talent makes them able to manage risk. Probably in a much more efficient way that we could. The takeaway here is that getting into business is the way to build serious wealth. It is not to say that you shouldn’t work as well. Both billionaires still work, but clearly it isn’t because they have to.Spending Silly
Trump, as documented on his show, spends incredible sums on luxuries. He flies and takes a helicopter and also is always taken care of by his staff. Cheriton clearly could afford that, but he is content with a 1993 Honda Accord and living in the same house he’s had since 1981. This type of living sets Cheriton apart from Trump. Cheriton still works, and if I had to guess, is doing what he really loves. The money doesn’t seem to be a score for him as it is for 100% professional businessmen. The upside for both billionaires though is that they’ve both achieved a position where they could stop working and easily support the needs of their entire families. What a great feeling that must be.
You Can, but Should You
The most interesting thing when it comes to people’s net worth to me is discovering how they handle their wealth. Some people choose to live lavishly like Trump. Enjoying the money that they have seems to be interesting to them and also part of a status. Others like Cheriton live simply, and essentially never really get to the point where they “need” their money to live their lifestyle. Neither one is moderate in my opinion. Each is at the far end of the scale.
Everything in Moderation
Sometimes, in an effort to gain riches we can become overly cheap and perhaps even a little stingy. In order to save enough for your goals, it is absolutely necessary to live below your means. However, how much below your means may be something that you are able to choose and regulate. Saving 50% of your income after your expenses and retirement while sacrificing nice things for others, yourself, and charity might carry an unpleasant stigma. Conversely, running up debt to spend 140% of your income is just as bad, if not worse.
Give yourself permission to spend, to donate, and to enjoy some of the wealth you’ve accumulated. As the addage goes, “you can’t take it with you” so wouldn’t it be a shame if you spent all your energies accumulating for ’someday’, when the day may never come? Perhaps if these two billionaires took some of this advice, we would have some better role models when it comes to spending money.
One thing is certain though, if there seems to be a lack of money in your life, it may be because of how you handle the money you actually do get. This is where Cheriton’s example is really worth something.