Why Would a Millionaire Downsize to a 420-Square Foot Apartment?

They say, “If you’ve got it, flaunt it.”

But that doesn’t always have to be the case.

Although countless people aspire to be millionaires, there are quite a few people with a significant amount of money that spend much less on luxuries than above average income earners.

In fact, there are numerous frugal millionaires out there.

Sure, they have the money to live way beyond their capacity, but they choose not to. Instead, they choose a low-key, simple kind of life. This may be how they hold onto their riches a lot longer than most.

By looking at the way they live, there are definitely some things that we can learn.

Recently, Graham Hill, a guy who made millions when he sold his tech start-up back in the 1990s, gave up his swanky lifestyle to move into a 420-square foot studio apartment in New York City.

This is quite the drastic change from the Seattle mansion he once occupied, equipped with expensive furniture, flashy cars and the latest gadgets.

As an advocate for the minimalist lifestyle, his apartment features a table that extends to seat 12 guests, a fold-down bed and an office space that recedes into the wall.

“People understand that we have super-sized, and it’s not really working for us and maybe there’s a better solution,’’ Hill said in a segment on TODAY Thursday. “I think life is about experiences and about connections and about relationships, and I think you want to maximize your time focused on that and minimize your time focused on acquiring more stuff and dealing with it.”

Realizing that the material things he owned had started to in turn own him, he decided to be more conscious about living a happier, more simple life.

“Less stuff to take care of, less stuff to think about, less stuff to maintain, easier to find things — it’s just overall simpler,’’ he said.

He is currently working with a developer to design and create buildings that are composed of smaller spaces and include a vast community.

Even if such a lifestyle may bring about challenges, Hill believes that in the end, making these changes would benefit society.