While Warren Buffett is widely recognized as the quintessential frugal billionaire, another name less familiar yet equally prudent in his financial habits is Ingvar Kamprad, the founder of IKEA.
Kamprad, who passed away in 2018 at the age of 91, was one of the world’s wealthiest individuals, yet his name seldom surfaces in popular discussions about billionaire thriftiness. According to a 2006 Forbes article, he reportedly stated, “I’m stingy and proud.”
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Ingvar Kamprad established a global empire with IKEA and became a self-made billionaire. At the time of his death, Bloomberg estimated his worth at approximately $58.7 billion, making him the eighth-richest person globally.
Despite this immense wealth, Kamprad was notorious for his frugal lifestyle, embodying the cost-saving ethos he advocated within his company. He famously flew coach, stayed in budget hotels, and drove a 1993 Volvo 240 GL for over two decades — a vehicle originally valued at around $22,000 but worth merely a few thousand dollars by the time he stopped driving it due to safety concerns.
Kamprad’s thrift extended beyond travel and automobiles. He was known to purchase clothes at flea markets — a habit he maintained even after returning to Sweden from a 40-year tax exile. “If you look at me now, I don’t think I’m wearing anything that wasn’t bought at a flea market,” he remarked during a television appearance in 2014, as reported by The Telegraph.
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Even his personal grooming showcased his frugal mindset. After paying about $27 for a haircut in the Netherlands in 2008 — an amount he considered too high — Kamprad told a Swedish newspaper, “Normally, I try to get my haircut when I’m in a developing country. Last time it was in Vietnam,” highlighting his continual pursuit of cost-efficiency.
Kamprad’s economic habits were not merely personal choices but also integral to his corporate philosophy and leadership style. He believed that his personal actions set an example for his employees, famously stating, “How the hell can I ask people who work for me to travel cheaply if I travel in luxury? It’s a question of good leadership.”
Kamprad’s legacy was also intricately tied to a complex trust structure, ensuring that his heirs did not inherit the billions tied up in IKEA, but rather the significantly smaller Ikano Group, which holds assets around $10 billion. In 1982, Kamprad established the Stichting INGKA Foundation in the Netherlands, a charitable entity that controls the majority of IKEA stores worldwide through a series of holding companies. Another holding company, Inter IKEA Systems B.V., owns the IKEA brand and overall franchise, which is in turn a subsidiary of a foundation based in Liechtenstein.
This elaborate setup secured the IKEA brand’s independence from the Kamprad family, preserving the founder’s vision but also distancing the wealth from his direct descendants. Jane Gray, Senior Solicitor at Stowe Family Law, noted the mixed implications of such trusts: “Trusts are a great facility to ringfence and preserve assets after you have died, but the downside is any control element dies with you.” She emphasized the importance of careful planning, as “assets contained in a trust are operated by the trustees for the benefit of chosen beneficiaries, not necessarily your direct heirs.”
In Kamprad’s case, his primary concern was not wealth but the longevity of the IKEA ethos, focusing on innovation and design over familial wealth accumulation.
While Ingvar Kamprad’s exceptional frugality might not be for everyone, his story shows the value of mindful spending and financial planning. You don’t have to drive a 20-year-old Volvo or get your haircut in Vietnam, but talking to a financial advisor could be a good move. They can help you create a personalized plan that aligns with your financial goals and values.
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This article IKEA Founder Was Worth $60 Billion But Drove A 1993 Volvo, Flew Coach And Got His Haircuts In Developing Countries: ‘I’m Stingy And Proud’ originally appeared on Benzinga.com
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Source: finance.yahoo.com