If You Were a Billionaire, Would You Need a Budget?

Posted on 03. Feb, 2006 by in News

My first answer is a definite “no!” However, after reading an article on billionaire Oracle Corp. founder Larry Ellison’s poor spending habits I might need to change my mind. Apparently the San Francisco Chronicle obtained copies of emails sent from Larry Ellison’s accountant outlining his worries for Ellison’s extravagant spending and his push for a budget. Apparently his new yacht, his America’s Cup team, and his new houses in Woodside and Malibu were putting a strain on the checkbook.

“I’m worried, Larry …” Simon wrote to Ellison in a 2002 e-mail. “I think it’s imperative that we start to budget and plan.”

“We have a freight train going down a track, hitting a debt wall,” he said in a deposition.

According to documents unsealed by a judge in a shareholder lawsuit, Ellison habitually pushes his credit limit of more than a billion dollars to its maximum to finance his yachts and homes. And that’s not even counting some $20 million a year he burns through in miscellaneous lifestyle expenses. And this coming from a guy who is the nation’s fifth richest individual, worth $17 billion.

So if you thought that one day, when you were rich and famous, you could get rid of Quicken and just spend to your heart’s content – think again. Budgeting is just as important, if not more important, when you’re a billionaire.

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