Too much credit card debt, student loan debt, and mortgage debt? Trying to get ahead with your finances so that you can start building equity?
Have no fear, because there is a solution for you!
That’s of course if you start living like this billionaire.
Warren Buffet, the CEO, and chairman of Berkshire Hathaway is one of America’s richest and most successful investors; and yet, he’s just a simple man with simple tastes.
Despite amassing a $75 billion net worth, he still lives a very humble and down-to-earth lifestyle.
With that said, how could we not love and be inspired by him? ❤️❤️❤️
Though we may not become as frugal as he is, we can still learn a thing or two about his lifestyle. And the best part is, he’s passionate and happy about his life!
That’s right! If you want some inspiration, then read on and start living like this billionaire!
1) Keep up with the Buffetts 💸
Instead of keeping up with the Joneses, try keeping up with the Buffetts!
In other words, live below your means.
He avoids expensive luxuries that he doesn’t need. In fact, he finds that the fancy gadgets give him a headache. At the end of the day, it adds no joy nor value to his life.
Based on that, it doesn’t look like Buffet’s going to be purchasing the latest iPhone nor Android anytime soon.
But that doesn’t mean we shouldn’t be buying the fancy gadgets either. We just need to prioritize what’s most important to us and spend less than what we make. Save the extras, invest it, and let the money work for you!
2) He lives in the same house since he first bought it in 1958.
Buffett purchased a modest home in Omaha, Nebraska, for $31,500 ($260,000 in today’s dollars), which he still resides.
At his annual shareholder’s meeting in 2014, he said “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.”
If you want to live like this multi-billionaire, consider buying less house than you need. This will allow you to squirrel away more in savings and use that towards investing and vacations. Not to mention, you’ll also be able to spend on the things that you love.
3) He once owned a license plate that read “THRIFTY”
He’s definitely a man of thrift!
Despite his massive wealth, he chooses to drive a regular car over a Bentley or Rolls Royce. Not just that, but he also rarely purchases new cars.
In 2014, the multi-billionaire switched to a $45,000 Cadillac XTS when his daughter told him it’s embarrassing to keep his old car.
“You’ve got to understand, he keeps cars until I tell him, ‘This is getting embarrassing — time for a new car,'” said his daughter.
He said, “The truth is, I only drive about 3,500 miles a year so I will buy a new car very infrequently.”
After all, cars are depreciating assets!
The Oracle of Omaha got into the investing game early… and I mean… REALLY early!
Though the word “investing” doesn’t cross our minds at that age, we can still learn an important point.
That is, to start investing as early as possible because time is your greatest asset.
I highly recommend starting in your 20s. If you’ve got the mentality to start even sooner, then kudos to you! Who knows – you might just become a billionaire one day 😉
But if you’re in your 40s or 50s, don’t sweat it! There’s no better time to start than now!
In addition to starting early, it’s important to not get emotional about your investments. Don’t be the spidey guy down there! That said, avoid timing the market at any cost!
“Rather than trying to time your investments, buy and hold for the long term,” Buffett tells CNBC. It’s what he’s been doing since the 1940s and what he still does today, regardless of the headlines.
“I’ve owned stocks consistently since 1942,” Buffett tells PBS. “I was buying stocks the day before the  election. I was buying stocks the same day after the election. Had Hillary been elected, it would’ve been the same thing.”
So, what are you waiting for?
Stop keeping up with the Joneses! It will only delay you! Instead, pay off your debts, save, and invest now!
I wrote a post about the basics of ETF (exchange-traded fund) investing to get you started. You can learn more about it here!
5) Ba da ba ba ba 🎵🎵… he’s lovin’ it! 🍟
On most mornings, Buffett would purchase a breakfast sandwich ($2.61, $2.95, or $3.17) on his way to the office. When the markets are up, he might splurge on the bacon, egg, and cheese on a biscuit for $3.17. But, when they’re down for the day, he might opt for the $2.95 sausage, egg, and cheese sandwich.
It may not be the healthiest option, but who can resist that delicious breakfast sandwich?
In fact, I indulge in McDonald’s breakfast sandwich once every 2-3 weeks. It’s personally my go-to on their menu, but I’m lovin’ it (even more) when they have coupons – my next point!
6) He still uses coupons
Not to mention, he used a McDonald’s coupon when he treated Bill Gates to lunch.
Bill Gates wrote “Remember the laugh we had when we traveled together to Hong Kong and decided to get lunch at McDonald’s? You offered to pay, dug into your pocket, and pulled out… coupons!”
After all, a multi-billionaire isn’t ashamed when it comes to finding a good deal.
7) He can taste the feeling (for those who don’t know, it’s Coca-Cola’s slogan)
There’s no doubt he’s thirsty for the stock as much as he’s thirsty for Coke.
According to a Fortune article, his secret to staying young is to eat like a six-year-old. He drinks about five to six cans of coke per day.
Buffet says “If I eat 2700 calories a day, a quarter of that is Coca-Cola. I drink at least five 12-ounce servings. I do it every day.”
When asked to explain how his high sugar diet keeps him healthy, he replied:
“I checked the actuarial tables, and the lowest death rate is among six-year-olds. So I decided to eat like a six-year-old. It’s the safest course I can take.”
Though it’s not recommended to drink that much amount of Coke, I thought it’d be a fun fact to mention here.
8) He reads 6 hours a day 📚🤓
Buffett’s huge success comes from reading… A LOT!
At seven years of age, he picked up a booked called “One Thousand Ways to Make $1,000” and he was hooked.
When asked how he became so successful, he pointed to his books and said, “Read 500 pages like this every day. That’s how knowledge works. It builds up, like compound interest. All of you can do it, but I guarantee not many of you will do it.”
Not only is reading an affordable hobby, but science shows that a Buffett-inspired reading habit could benefit you in several ways.
On top of becoming smarter, you’re more likely to become rich by reading self-development books. Not to mention, it increases emotional intelligence, as well as your overall well-being according to the same article.
With that said, we should commit to reading at least 2 hours per day. Whether we’re on our lunch, in our beds, or on the train (going to work or home), there’s no better time to pull out a book, newspaper, or blog on your phone!
9) He’s a hardcore hustler 💰💪
At a very young age, Buffett fell in love with the idea of making money.
As mentioned above, he was hooked on “1,000 ways to make $1,000” at age seven.
With a strong entrepreneurial mindset, he took on various gigs. Here’s how he hustled his way up:
– sold gum, pop, and magazines door to door
– sold popcorn and snacks at local football games
– worked at his grandpa’s grocery store
– bought cases of Coke and sold them individually for a profit
– delivered newspaper
– sold golf balls and stamps
After earning from those gigs, he eventually invested the money. By the age of 16, he already amassed $53,000. Imagine how much that $53,000 is worth in today’s dollars!
Now, my question to you.
If he can hustle (back in the good ol’ days), then so can you!
With our access to technology, making extra money should be a walk in the park compared to Buffett’s childhood days.
Seriously, you’d be surprised how much extra you can earn with your side hustles. With extras, you’ll have the option to punch debt in the face, save for an emergency fund, and invest! 💰💰💰
10) He knows that money cannot buy friendship
Aside from investing his dollars, he also invests his time with friends.
His longtime friend, Bill Gates wrote:
“Even though he keeps up a hectic schedule, Warren finds time to nurture friendships like few other people I know. He picks up the phone and calls to say hello. He regularly sends articles he’s read in the mail that he thinks Melinda or I will find interesting.
I’ve learned many things from Warren over the last 25 years, but maybe the most important thing is what friendship is all about. It’s about being the kind of friend you wish you had yourself. Everyone should be lucky enough to have a friend who is as thoughtful and kind as Warren. He goes out of his way to make people feel good about themselves and share his joy about life.”
After reading that, ask yourself this question. As you think about it, be honest with yourself.
“Do I invest enough time with my family and close friends?”
Over to you
I hope you learned a thing or two about Warren Buffett frugal lifestyle.
So, do you have what it takes to live like this billionaire? How would your lifestyle be if you were as rich as Warren Buffett?
Feel free to share your thoughts and comments!