Warren Buffett is the second richest man in the world with a net worth of more than $73 billion. However, if there is one thing that he’s known for aside from his brilliant investing mind, it’s his supposed frugality. We’ve written the ways in which Buffett is frugal before, and they are many.
For example, Buffett routinely eats at McDonald’s, he still lives in the same house purchased in 1958, and he lacks many of the extravagances of other billionaires his class. He has a jet plane for traveling but in most other ways he’s not all that different from many of us. He doesn’t hire five-star chefs and he drives himself to work. However, he isn’t quite as frugal as you might think.
In fact, Buffett himself has said that he doesn’t consider himself frugal or cheap, and that he buys absolutely everything he could want. However, he doesn’t count those possessions as important.
“There are things money can’t buy. I don’t think standard of living equates with cost of living beyond a certain point,” Buffett said at the 2014 Berkshire Hathaway shareholder’s meeting. “There’s a point you start getting [an] inverse correlation between wealth and quality of life. My life couldn’t be happier. In fact, it’d be worse if I had six or eight houses. So, I have everything I need to have, and I don’t need any more because it doesn’t make a difference after a point.”
After all, when you have as much money as Buffett has (he is the second richest man in the world at the time of writing), there is only so many things you can buy. Buffett has said on multiple occasions that at some point, possessions begin to own you. However, he isn’t frugal because he buys whatever he wants; the difference is that unlike many people, his wants are simple.
To Buffett, relationships are far more important than monetary things, and instead of worrying about owning things, he worries more about the people in his life.