It’s no secret that billionaire investor Warren Buffett tends to live a frugal lifestyle. In fact, that’s one of the many reasons we love him!
Probably the most famous aspect of Warren Buffett’s frugal life is his modest home. Buffett still lives in his home in Omaha that he purchased in 1958. It’s not a small house, sporting 5 bedrooms, but it’s certainly not the type of home we see most billionaires in. His frugal life doesn’t stop there thought, and here’s why— as told by Warren Buffett.
“Bella Eidenberg was a Polish Jew at Auschwitz and some of her family didn’t make it… she said she was slow to make friends, and that the real question in her mind was always, ‘Would they hide me?’ If you have a lot of people that would hide you, you’ve had a very successful life. That can’t be bought. I know people that have billions of dollars and their children would say, ‘he’s in the attic.'”
Warren Buffet, though wealthier than pretty much everyone, values relationships a lot more than his wealth. He acknowledges that there are some things you simply cannot buy, no matter how much money you acquire, among those health and love.
Buffett also avoids expensive luxuries that he finds unnecessary. He once said that most toys are just a pain in the neck, and he practices what he preaches for the most part. The exception to this rule is Buffett’s most expensive toy, his private jet “The Indispensable.” Buffett has defended his jet on multiple occasions, saying that it really improves his life as the head of Berkshire Hathaway. Once, he even commented that he wasn’t sure if he would be able to choose between his jet or his computer.
Aside from his private jet costs, Warren Buffet estimates that lives on about $100,000 a year. He goes on to put this in perspective for us: Buffett explains that by taking out $3 billion of his Berkshire stock he would be able to pay 30,000 people a salary of $100,000 each or 50,000 people $60,000 a piece.
“Don’t confuse the cost of living with the standard of living,” he advises. “Keep up with the Buffetts. We’ve always been fans of living within your means and income… You shouldn’t increase your cost of living without improving your standard of living.”