Friday, May 24, 2024

Warren Buffett’s Frugal Lifestyle Hacks Saved Millions — Here Are 5 Tips To Follow Suit In Your Everyday Life

Must read

Warren Buffett’s frugal lifestyle has been a focus of interest and for good reason – the Oracle of Omaha has been prudent with both his investments as well as his life beyond Berkshire Hathaway.

From the good old McDonald’s hamburger to cherry Coke to still living in the first home he purchased 66 years ago in his hometown of Omaha, Nebraska, Buffett has lived a rather simple life for someone who is among the top ten richest people in the world.

Buffett’s philosophy is also rather simple – from cheap breakfasts to living in the same house and not buying flashy toys or cars, the legendary investor’s frugal lifestyle habits are easy to incorporate into your daily lives.

See Also: ‘I Will Teach You To Be Rich’ Author, Ramit Sethi, Became A Self-Made Millionaire — He Now Shares His Simple Formula To Grow Your Wealth

5 Practical Warren Buffett Habits That Can Save You Money

1. Living In The Same House

Representational image of Buffett’s home | Image generated using Dall-E

Buffett still lives in his Omaha house that he bought for $31,500 in 1958. The 66-year-old 6,570-square-foot home has five bedrooms and is protected by a fence and security cameras.

Apart from regular maintenance and some renovations, Buffett has not done anything major or converted it into a palatial bungalow. He doesn’t have any plans to move out, either.

In a 2010 letter to Berkshire Hathaway shareholders, Buffett called it “the third best investment I ever made.”

2. Sticking To The Basics

Representational image of Buffett’s breakfast | Image generated using Dall-E

Buffett could afford the best cooking staff and chefs in the world who can cook him fancy meals every day, but he likes sticking to the basics.

In HBO’s 2017 documentary, Becoming Warren Buffett, he said he does not like spending more than $3.17 on his breakfast. While prices have since gone up, Buffett explained his routine includes sausage patties and Coke, or a bacon, egg, and cheese biscuit when he’s feeling “prosperous.”

3. The Ultimate Luxury

Do what you love | Image generated using Dall-E

The “do what you love” advice is cliched, but it’s the “ultimate luxury,” says Buffett.

In an interview with CNBC, he said, “Success is really doing what you love and doing it well.”

“It’s as simple as that. Really getting to do what you love to do every day — that’s really the ultimate luxury.”

4. Stay Away From Credit Cards

Say no to credit cards | Image generated using Dall-E

Buffett does not believe in using credit cards. He thinks cash is better, even though it might seem a bit old school at a time when contactless and card payments are commonplace.

Paying interest on credit card debt is like throwing away money, according to Buffett. Instead, he suggests buying only those things that you can afford.

5. Wants Versus Needs

Splashy toys are temporary | Image generated using Dall-E

Lastly, it’s important to differentiate between wants and needs. Although he can afford the best gadgets out there, he rocked a $20 flip phone as recently as 2020, when he finally upgraded to an iPhone.

He doesn’t splurge on materialistic things like cars or yachts, either. “Do not save what is left after spending, but spend what is left after saving,” he once said.

Photo courtesy: Shutterstock

Latest article