Warren Buffet, though worth billions, still practices plenty of frugal money-saving techniques. His frugal life is one of the many reasons we love him, and while he doesn’t have to live quite so frugally it isn’t a bad idea to start implementing some of his strategies! Here are 5 of the easiest ways that you can be frugal just like Buffett.
1) Don’t Treat Yourself Too Much
This is pretty obvious advice for anyone looking to live a more frugal life. Even though he has billions, though, Buffett still doesn’t blow money on expensive luxuries.
In fact, Buffett once said that most luxuries are just a pain in the neck. For the most part, he practices what he preaches. Keep in mind that if the second richest man in America doesn’t need a yacht or sports car, you don’t either.
2) Shop the Sales
While Buffett does focus on long term profit rather than short term growth, he is no stranger to shopping the sales. It’s a basic concept, the greater the discount the more profitable the return. Buffett is very patient in waiting for the right price to make his move.
You can practice this as well, just by taking the time to find sales and coupons for purchases you need to make!
3) Keep it Modest
“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,” Buffett said in his 2014 shareholder meeting.
Warren Buffett’s modest home is probably the most famous display of his frugal life. Rather than spending his billions on a huge mansion or multiple destination homes, Buffett still live in the home he purchased in 1958 located in Omaha, Nebraska for about $260,000 of today’s dollars. He lives very modestly for a man of his worth.
4) Stay in Your Standard of Living
“I’m not interested in cars and my goal is not to make people envious. Don’t confuse the cost of living with the standard of living,” Buffett once said. This is actually one of my favorite Buffett quotes!
The octegenarian, in an interview with various business schools, estimated that he lives on about $100,000 a year, which is the same base salary he has received for the last 25 years at Berkshire Hathaway.
“Keep up with the Buffetts,” he says, “We’ve always been fans of living within your means and income.” There is no need to chase a lifestyle that you cannot afford to live, instead focus on being happy with the life you can afford to live.
5) Invest Cautiously
“The first rule of investing is don’t lose money; the second rule is don’t forget rule number on,” Buffett is very often quoted for saying. This is pretty self-explanatory, as is a lot of Buffett’s advice, saying that you should not be making investments unless you’re guarenteed to profit. While that might be a little extreme, you should at least be very contemplative when making financial decisions. Go through all of the pros and cons and avoid any irrational committments.
6) Follow Your Dreams
“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 everyday— that’s the ultimate luxury,” Buffett says.
Buffett thinks it is important to keep in mind that money is not the sole measure of wealth. He acknowledges that there are plenty of things money simply cannot buy, among those happiness!
Doing what you love is probably considered a luxury for a lot of people, but Buffett doesn’t think that should be the case. Since he loves working at Berkshire, that cuts back on a lot of leisure and and travel that he might pursue if that wasn’t the case. You can try to implement the same idea by picking up an inexpensive hobby or even some internet activities to boost your income, therefore cutting back on spending money.