When the large paychecks roll in after constructing a profitable enterprise, it could be tempting to splurge on designer garments, luxurious mansions, and high-tech devices. When Derrick Hayes—an entrepreneur who grew up in “survival mode” promoting bean pies and newspapers on the streets of Philadelphia—lastly made it together with his multimillion-dollar fast-casual restaurant chain Massive Dave’s Cheesesteaks, that meant he had the prospect to lastly get behind the wheel of some flashy vehicles.
“My kryptonite is vehicles,” Hayes tells Fortune. “I had two Bentleys…I had a McLaren, Audi R8, Vary Rover, G-Wagon. I’ve had just about each automotive.”
The founder and CEO handled himself after a decade of rising Massive Dave’s Cheesesteaks right into a nationwide success. In 2014, the Philly native launched the chain after his ailing dad wished for him to start out his personal enterprise—so he opened the primary location, named after his late father, in a Shell fuel station in Dunwoody, Georgia. And ten years later, the restaurant has exploded throughout the U.S. with 12 areas, with two of Massive Dave’s hotspot areas in Atlanta bringing in $1.1 million to $1.8 million in web gross sales final 12 months alone. The chain sells a cheesesteak—starting from the essential $11.99 sandwich to $46.99 specialty selections—each 58 seconds.
Regardless of persevering with to develop his empire, Hayes has determined to chop again on the niceties he was splurging on. The 2023 mannequin of the Audi R8 the entrepreneur was driving would run up automotive fans anyplace from $161,395 to $253,290; a 2025 Mercedes-Benz G-Class, or “G-Wagon,” will set you again $149,400 to $163,700; and relying on the mannequin, a McLaren can value over $2 million.
They’re among the most sought-after vehicles for many who prefer to drive quick and in model, however Hayes says all the pieces loses its luster ultimately. And on this fragile economic system—rife with tariffs, skyrocketing residing prices, and a looming recession—there’s no telling how one’s monetary state of affairs can change on a dime.
“What I’ve discovered is, after two weeks, it doesn’t matter what you purchase, you don’t find it irresistible the identical,” the millennial CEO explains. “[As I get] older, I’m getting loads wiser. Not saying that you just don’t purchase issues that you just wish to take pleasure in and have enjoyable on the weekends…however I feel it’s essential that you just be conscious of the way you spend as a result of we dwell in a world that you just don’t perceive.”
“The economic system can at all times shift on you,” he provides. “And I at all times say this: no one can save me and my household if I hit all-time low. I can’t anticipate anyone to afford these large payments that I’ve… The one means I may do that’s to be very accountable with funds and choices, in order that I can provide my final title an opportunity of generation-breaking.”
Different entrepreneurs are treading rigorously with their cash too
Hayes isn’t the one one who has made it, but nonetheless treads rigorously with their cash. Lucy Guo, the youngest self-made billionaire who retained a $1.2 billion stake from founding $25 billion Scale AI, isn’t the sort to ball out on Prada garments and luxurious vehicles. The entrepreneur mentioned she hates “losing cash,” and lives by the mantra “act broke, keep wealthy.”
“By way of each day life, my assistant simply drives me in a fairly outdated Honda Civic. I don’t care,” Guo beforehand advised Fortune. “Every thing I put on is free or from Shein…A few of them aren’t going to be that nice high quality, however there’s at all times like two items or so that basically work out, and I simply put on them daily.”
And 31-year-old actress Keke Palmer, star of hit initiatives together with Nope, Hustlers, True Jackson, VP, and Considered one of Them Days nonetheless lives underneath her means regardless of attaining millionaire standing on the age of 12.
Similar to Guo and to the dismay of Hayes, she isn’t prepared to drop tons of of 1000’s of {dollars} on a automotive or luxurious home. Palmer mentioned she discovered her checkbook balancing expertise from her mother and father “who knew their limitations with cash and funds,” and is cautious to save lots of and dwell a frugal life-style as a mega-star.
“I dwell underneath my means. I feel it’s extremely essential,” Palmer advised CNBC in an interview this Could. “If I’ve $1 million in my pocket, my hire goes to be $1,500—that’s how beneath my means I’m speaking. My automotive word goes to be $340. I don’t want a [Bentley] Bentayga, I’ll trip in a Lexus.”
