In a new age of austerity, the man who once described himself as a 'Scottish Swede' could show us a thing or two about saving money. At 82, Ikea founder Ingvar Kamprad remains true to his mission to provide low-cost design, maintaining strict control over spending throughout his multinational empire of 292 stores and sticking to the company motto: "We do our part, you do yours. Together we save money."

The father of flat-pack furniture hit on its cost-cutting potential back in his native Sweden in 1956 while trying to cram a bulky table into a car boot. Together with a young local draughtsman, Gillis Lundgren, they removed the table legs and placed them underneath for easier transport.

The costly shipping of large crates, mostly filled with air, was significantly reduced by packing furniture flat when sending from factory to shop floor. But the expense of re-assembling the furniture could have defeated the purpose, so Kamprad offloaded that task on to the customer, with the result being low prices for all concerned. A flat-pack empire was born, and with it a revolution in DIY.

Ikea became all the rage – 'rage' in every sense of the word where self-assembly is often concerned. The prime minister of Norway, indulging in a little neighbourly rivalry too perhaps, said it for the DIY-challenged when claiming: "I myself have great problems screwing together such furniture."

It can only be imagined just how blue, and yellow, the air turned when Aussie actor Russell Crowe famously tried to follow instructions for his baby son's Ikea cot. He told newspapers he couldn't master "the key thingy" – the essential Allen key – and angrily resorted instead to using a traditional screwdriver.

While Kamprad still has his business head screwed on – and a fortune most recently estimated at €17.85bn – he is no longer involved with the day-to-day running of his global empire.

Intensely private, and with a dislike for the media, the octogenarian Swede remains a senior company adviser and continues to meet staff – or 'co-workers' as he prefers it – in person on the shop floor.

Gary Deakin, Dublin Ikea store manager, is impressed with the 'hands-on' approach of his Swedish boss. "Having met Ingvar many times, he is a great character, incredibly down to earth and humble. And he's a genuine retailer, spending most of his time on the shop floor and always looking at Ikea through the eyes of the customer."

The strict control of costs to keep prices low extends to every level, and Kamprad himself lives by example. His modest bungalow in Switzerland is furnished almost entirely with Ikea products.

He flies economy class and stays in budget hotels. When not driving his battered old Volvo, he makes use of his pensioner's pass and travels on public transport.

He does food shopping in the afternoon when prices in the local market start to drop. He's the master of the understatement, as in: "I'm a bit tight with money."

He has spoken of a problem with alcohol dating back to the 1960s when he went on business trips to Poland. The drink is under control, he says, due to regular 'drying-out' sessions three times a year. "I love to drink. But I know that if I don't have these pauses, it will become a habit."

Much more controversial was the revelation by a Swedish newspaper in 1994 that Kamprad had belonged to Nordic Youth, Sweden's equivalent of Hitler Youth, during the Second World War. He wrote a letter of apology to all Ikea staff, asking them to excuse what was "the greatest mistake" of his life. "You have been young yourself. And perhaps you find something in your youth you now, so long afterward, think was ridiculous and stupid."

Kamprad grew up in southern Sweden, and from very early on showed an instinct for turning a profit. At the age of five, he was selling matchboxes; by his teens he was operating a mail-order system for Christmas cards and pens in conjunction with the local milk-delivery truck.

At 17, he formed his famous company, an acronym of his initials coupled with the first letters of the family farm at Elmtaryd, the family farm where he was born, and local village of Agunnaryd.

The signature blue and yellow megastore was to become the Lidl of the interior design world, replicated in 36 countries around the globe. Ikea overtook UK chain Habitat in popularity and bought the company outright in 1992.

But it hasn't always been plain sailing due to lengthy planning issues over the sheer outlet sizes demanded by Ikea, with delays lasting several years.

The Dublin store, at 30,500 sq m, is just one example. Ikea is not immune to the recession either, and the collapse in the housing market is already having an effect on sales in UK stores. The Guardian reported that Ikea cut 300 senior management posts worldwide last year.

As to how the Dublin store will fare in a new climate of penny-pinching, the hordes of shoppers still heading from the Republic to Ikea Belfast show that the love affair with Scandi budget design is far from over.

And Ikea's frugal founder is in his element when thrift is called for, empathising with customers on a budget, and deploring waste wherever he sees it. When a statue was erected in his honour in his Swedish hometown, Kamprad was invited to cut the ribbon. Instead, he untied it and handed it to the bemused mayor, advising him to use it again.

His belief that it's not necessary to spend a fortune, whether it's a government or an individual, has gained fresh currency.

"I look at the money I'm about to spend on myself and ask myself if Ikea's customers can afford it," he once said. "It's important that leaders set an example."

CV

Born 1926 on the family farm, Elmtaryd, southern Sweden

Founded IKEA 1943, originally mail-order jewellery and watches; switched entirely to furniture sales 1951; developed flatpack furniture 1956

Personal life Lives with second wife Margaretha; three grown-up sons

In the news The 293rd IKEA store opens in Southampton this week; IKEA Dublin opens on 27 July