With an estimated net worth of close to $100 Billion, “Warren Buffett” is often cited as one of the wealthiest persons in the world. Today, you’ll see the “Best 18 Frugal Living Tips” you can learn from him. And the last one is the most important.
18 Frugal Living Tips Warren Buffett Used To Save Money
#1. Purchase A Small House
Buffett and his late first wife “Susan,” purchased their home for around $31,000 in 1958. He didn’t replace it with a mega mansion once the money began coming in since it has five bedrooms and two bathrooms, so it’s not small. But he also purchased a vacation property in “Laguna Beach, California” for more than $140,000. Buffett has always considered “Omaha” and the small home he built there in the 50s to be his “Sweet Home.“
Also Read: What Is Sustainable Investing & How Does It Work? (2022)
#2. Payback Debt
Buffett has been quoted as opposing “Credit Cards,” especially ones with potentially high-interest rates. He recalled a conversation with a friend who had a Credit Card bill and an 18% interest rate. If Buffett had any Debt at an interest rate of 18%, the first thing Buffett would do is pay it off.
Additionally, he said it would be much superior to any investment concept he could think of. To avoid paying more interest, consider Paying off your Credit Cards as quickly as possible. You could also look into the Best Credit Cards to locate ones with lower interest rates or that are simpler to pay down.
#3. Don’t Be Shy About Using Coupons
88% of Americans utilize coupons to get great prices. To Live Frugally, collect Coupons before going to the store or buying online. Cutting Coupons out of magazines and newspapers is no longer necessary. You may search for Coupons on particular online retailers, and some applications and websites also post Coupon Codes.
For printable codes and grocery coupons, check these online websites. They may assist you in obtaining Discounts on food delivery, vacation, furniture purchasing, office supplies, and other items from your preferred online retailer.
#4. Avoid Drinking and Smoking
Both Smoking and Drinking involve ongoing financial outlays. And because neither is healthful, these both may result in higher future medical expenses. Buffett is still living today at 91 despite never smoking or drinking alcohol.
Also Read: 6 Expensive Things You Should Avoid Buying Right Now
#5. Look For Discounts And Bargains
In a letter to shareholders from “Berkshire Hathaway” in 2008, Buffett said that he enjoys purchasing high-quality goods at a Discount, whether we’re talking about Socks or Equities. Buffett doesn’t have to buy anything on sale, but he does because he understands how valuable a bargain can be.
#6. Give Back
Giving money away might be a smart move if you can make it. Buffett has declared his intention to donate almost all of his wealth. And he has already given large contributions to organizations like the “Gates Foundation, the Buffett Foundation,” and other organizations. Take into consideration the charities and other groups you may like to help. You might donate right now or include it in your estate plan.
#7. Don’t Gamble
What is that adage about gambling? “The Casino always wins.” Buffett is well aware of this and has said that gambling is a tax on ignorance. He once spent his money on a slot machine for his house and gave his children their allowance and dimes since he knew they couldn’t resist the owner of the slots, and he would get their whole allowance back the same day. They discovered that gambling doesn’t pay, as Warren Buffett and wise investors already know.
#8. Only Upgrade Items When Necessary
Buffett is renowned for having long used an old phone; however, he now uses an iPhone. Buffett is not always about spending a lot of money on the newest and finest technology, as seen by his phone ownership history. Buffett once said that he doesn’t discard anything until he has held it for 20 or 25 years.
Also Read: 5 Productive Business Ideas That Will Always Be In High Demand
#9. You Are Accountable For Your Success or Failure
There are many more people involved in the financial markets than people who understand them. Because of this, people use Mutual Funds to store their money or hire Investment Advisors. According to Buffett, actively managing your money is the only option.
Your decision-making, not that of your financial advisor, will determine whether your investments are successful or unsuccessful. His practice is to fully understand an investment before assuming full responsibility for its management. Aside from being a good approach, this is the only way for a rookie investor to become an expert.
#10. Put Fancy Food Away
Buffett could eat anything he wants at every meal, but his eating habits are restrained if not super healthy. Buffett said he preferred a McDonald’s hamburger over a $100 lunch. According to his daughter, Buffett often takes his grandkids and great-grandchildren to lunch each month but not to a five-star restaurant. They go to a dairy queen owned by “Berkshire Hathaway.”
#11. Don’t Overspend On A Fancy Wedding
An engaged couple might easily spend hundreds of thousands of dollars on a laddish wedding. That is not Buffett’s style. In a brief civil ceremony held at Buffett’s daughter’s home, he married his second wife in 2006. The formal supper at a laid-back seafood restaurant occurred after the 20-minute ceremony, according to the “New York Times.”
At a “Berkshire Hathaway” owned jewelry shop in Omaha, Buffett’s daughter assisted her father in choosing the engagement ring for his new marriage. When the “NYTimes” questioned Buffett’s daughter about whether or not dad took advantage of the employee Discount on the purchase, she assured them he did.
#12. Drive The Same Vehicle For Many Years
Buffett does not, however, drive the most affordable vehicle. He discussed his pick of a “Cadillac XTS premium vehicle” in an interview with Forbes in 2014. However, compared to someone with his money account, Buffett doesn’t replace his automobile as often. Buffett acknowledged that he seldom buys a new automobile. He said, “the truth is I only drive about 3,500 miles per year so I will buy a new car very infrequently.”
#13. Begin Investing Early
Buffett had a very early concentration on being wealthy. As a young boy, he delivered hundreds of thousands of newspapers in addition to earning money in other ways. Around the age of 10, he purchased his first stock. Buffett, who is 91 years old at the time, has been investing in stocks for an incredible 80 years.
If we invested for 80 years, it would be difficult for us not to become wealthy, even if our returns were far lower than Buffett’s 20% increase. If you invested $1,000 only once some 80 years ago and it increased by 10% yearly, it would have grown more than 2000-fold to more than $2 Million.
Also Read: 7 Steps To Become Wealthy with Modest Salary (2022)
Of course, if you invested $1,000 every year, you’d have more than $22 Million. The takeaway from this is not that you must invest for 80 years. Rather, it is that you must recognize the importance of time. You’ll see that the strength of money’s growth increases with the amount of time it has to grow.
#14. Select Cheap Hobbies
Playing “Bridge,” which needs a deck of cards and a few buddies with the same interests, is one of Buffett’s favorite pastimes. Buffett doesn’t care where his pals come from, saying once, “if I ever go to jail, I’d want my cellmates to be Bridge players.”
#15. Give From Your Heart
Buffett has the option of lavishing his friends with expensive presents, but he opts to give them time instead of cash. Buffett is the type of buddy everyone aspires to have, said his billionaire friend “Bill Gates” on his blog “Gates Notes.” And his acts of kindness cost him nothing, such as personally picking Gates up from Omaha airport. Mailing him materials he knows would be of interest, or simply picking up the phone to call and chat.
Also Read: 5 Best Online Side Hustle To Start Right Now
#16. Recognize The Dangers Of Having Too Many Things
According to Buffett, a large accumulation of belongings often leads to the owner being possessed. He said this in his giving pledge, in which he pledged to contribute more than 99% of his fortune to charitable organizations. Although, Buffett doesn’t obsess about vast collections of houses or vehicles. Besides his health, he said his long-lasting friendships with fascinating people were his most prized possession.
#17. Put Fancy Clothing Away
Buffett has around 20 business outfits in his closet, but this isn’t because he’s a close source. He’s thinking of having met a Chinese businesswoman, “Madam Lee,” who measured him for a single suit and has since sent him fresh ones. Buffett claims that if it weren’t for “Madam Lee,” he probably wouldn’t possess more than five suits, and those he bought would be older than ten years.
Also Read: How To Develop Investing Mindset For Teenagers?
#18. Don’t Lavish Material Goods On Your Children
Susan Buffett, the daughter of Buffett, claims that her parents raised their children normally rather than with the silver spoon-rich lifestyle portrayed in “Richie Rich” comics. She told “People Magazine” that they lived in a fine home, but not the largest in town. She also said that they went to public schools, didn’t get cars until they were 16, got an allowance, and had chores around the house.
Also Read: 8 Investment Mistakes Beginners Should Avoid in Stock Market
Suppose you are serious about achieving financial independence and living a frugal lifestyle. In that case, you should read our article “Best Frugal Living Strategies To Save Money.“
