While Warren Buffett is widely recognized as the quintessential frugal billionaire, another name who is less known but equally cautious in his financial habits is Ingvar Kamprad, the founder of IKEA.
Kamprad, who died in 2018 at the age of 91, was one of the richest individuals in the world, but his name rarely appears in popular discussions about the thriftiness of billionaires. According to a 2006 Forbes article, he reportedly said, “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 wealth at approximately $58.7 billion, making him the eighth richest person in the world.
Despite this enormous wealth, Kamprad was notorious for his frugal lifestyle, which epitomized the cost-cutting ethos he advocated within his company. He famously flew coach, stayed in budget hotels and drove a 1993 Volvo 240 GL for more than two decades – a vehicle that was originally worth about $22,000 but was only worth a few thousand dollars by the time he retired due to safety concerns.
Kamprad’s thriftiness extended beyond travel and cars. He was known to buy clothes at flea markets—a habit he continued even after returning to Sweden from a 40-year tax ban. “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 2014 television appearance, as reported by The Telegraph .
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Even his personal care showed his frugal mentality. 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 hair cut when I’m in a developing country. The last time was that in Vietnam,” highlighting his continued pursuit of cost-efficiency.
Kamprad’s economic habits were not only personal choices, but were also an integral part of his business philosophy and leadership style. He believed that his personal actions set an example for his employees, saying, “How can I ask people who work for me to travel cheaply when I travel in luxury? It’s a matter of good leadership.”
Kamprad’s estate was also closely tied to a complex trust structure, which ensured that his heirs did not inherit the billions tied up in IKEA, but rather the significantly smaller Ikano Group, which owns assets of about $10 billion. In 1982, Kamprad founded the INGKA Foundation in the Netherlands, a charity that controls the majority of IKEA stores worldwide through a series of holding companies. Another holding company, Inter IKEA Systems BV, owns the IKEA brand and the overall franchise, which in turn is a subsidiary of a foundation based in Liechtenstein.
This comprehensive setup ensured the independence of the IKEA brand 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 option for ring-fencing and preserving assets after you die, but the downside is that each control element combines dies with you.” She emphasized the importance of careful planning, as “assets in a trust are managed by the trustees for the benefit of the chosen beneficiaries, and not necessarily your direct heirs.”
In Kamprad’s case, his main concern was not wealth, but the sustainability of the IKEA ethos, which emphasized innovation and design over the accumulation of family wealth.
While Ingvar Kamprad’s extraordinary frugality may not be for everyone, his story illustrates the value of conscious spending and financial planning. You don’t have to drive a 20-year-old Volvo or get your hair cut in Vietnam, but talking to a financial advisor can be a smart move. They can help you create a personalized plan that aligns with your financial goals and values.
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This article IKEA’s founder was worth $60 billion, but drove a 1993 Volvo, flew a coach and got haircuts in developing countries: ‘I’m Stingy And Proud’ originally appeared on Benzinga.com
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