The Dark Knight Rises star says that he hasn't forgotten his early days of poverty in London and tries not to buy flashy things with his newfound wealth.
He told The People: "I'm very fortunate I live in fantastic luxury but it doesn't mean I should forget where I come from. I've seen both sides - rich and poor. That's why all that bling has gone. I don't need all that."
Caine, who has enjoyed a successful acting career since the 1960s, said that he believes that during a time of recession it wouldn't be right to buy luxury items.
He added, "I used to drive a Rolls [Royce] and all that, but they were just too ostentatious for this world now. I had to get rid of them. It didn't feel right to be all showy when there are people scraping and scrimping to feed their loved ones.
"I just get driven around in a Lexus which you wouldn't look at twice - it's just grey. I still have the Rolex but I leave that in a drawer and wear this cheap black plastic one instead. It does the job."
The 79-year-old actor will next be seen in The Dark Knight Rises with Christian Bale, Tom Hardy and Anne Hathaway.
Watch a trailer for The Dark Knight Rises below: