Have you ever wondered why those who are truly wealthy tend to be especially frugal?

It's not meanness; it's a complete logic— they see spending money and investing money as the same thing. As long as it doesn't bring a positive return, they won't buy it no matter how cheap; as long as it's high-value, they'll buy it without hesitation even if it's expensive.

Look at how top wealth creators do it, and you'll understand.

**Warren Buffett's Dual Life**

On one hand, this guy is famously stingy. He bought a house in 1958 for $31,500 and has lived in it for over sixty years without moving. He drinks only $3 Coca-Cola daily, eats cheap McDonald's meals, and rarely wears a tie. He saves on parking fees, and if convenience store snacks go up a few cents, he just drops them—truly outrageous.

But on the other hand? He has spent billions acquiring quality companies like See's Candies, Coca-Cola, and Apple, even if they are expensive. He promises to donate 99% of his wealth to charity. He spends tens of thousands of dollars attending top dinners to network with experts. These moves are far from small.

He himself explains it clearly: "The happiness from a luxury house is far less than the compound interest benefits of investing that money." In other words, his restraint in daily consumption reflects his reverence for compound interest.

**Duan Yongping's "Chinese Version"**

This guy is even more extraordinary. He often wears casual clothes and sneakers, eats affordable fast food on the street, and has no airs. Luxury cars, watches, mansions? Not interested at all. Almost all his earnings are invested in the stock market—NetEase, Apple, Moutai, holding heavy positions.

His logic is the same: "Dressing well and eating expensive doesn't make me happier, nor does it help me make better decisions. The money should go to companies that create value."

Interestingly, this investment discipline extends to daily life—he never pays for "limited edition" items. If he doesn't see value, even for a small amount, he won't spend it. This is completely consistent with his principle of "never buying overvalued stocks."

But what if a good opportunity arises? He heavily invested 270 million USD in NetEase's bottom fishing, then later allocated large sums to Apple and Moutai, even participating in private placements at a premium. The reason is simple: "Good companies deserve high valuations. Investing in them yields returns far beyond any consumption."

**Munger's "Rational Consumerism"**

Buffett's golden partner, Charlie Munger, has ingrained frugality into his bones. In his youth, he saved and invested his entire salary in the stock market; in old age, he remains remarkably modest—ordinary houses, ordinary cars, never chasing material pleasures.

His most extreme principle: not buying "useless things." If a book doesn't inspire him, it's a waste of money. When dining with Buffett, they split the bill; if the food is too expensive, he proactively changes venues. Is he stingy or not?

His words are very piercing: "Spending money casually is an irrational habit, and this habit can transfer to mistakes in investing."

But what about high-value items? He fully supports acquiring quality companies, holding top stocks, and is never stingy. He spends a lifetime buying books, attending lectures, and making friends with wise people—because he firmly believes that "cognition determines the upper limit of wealth; spending money on knowledge is the highest return on investment."

**The underlying logic is actually so simple**

The stories of these three people all tell the same thing: their consumption decisions and investment decisions are based on the same framework.

Their restraint isn't stinginess; it's reverence for compound interest loss. Those daily expenses? Wasting the compounding space of time and money.

Their generosity isn't extravagance; it's confidence in high-value returns. The money they spend? It’s spent to generate multiple or even dozens of times the return.

So the key isn't whether you spend more or less, but whether every penny you spend truly brings positive returns to your life or wealth. That’s the biggest difference between the wealthy and ordinary people.