04/05/2024
Warren Buffett's frugal lifestyle has been a focus of interest and for good reason – the Oracle of Omaha has been prudent with both his investments as well as his life beyond Berkshire Hathaway.
Buffett's philosophy is also rather simple – from cheap breakfasts to living in the same house and not buying flashy toys or cars, the legendary investor's frugal lifestyle habits are easy to incorporate into your daily lives.
1. Living In The Same House
Buffett still lives in his Omaha house that he bought for $31,500 in 1958. The 66-year-old 6,570-square-foot home has five bedrooms and is protected by a fence and security cameras.
Apart from regular maintenance and some renovations, Buffett has not done anything major or converted it into a palatial bungalow. He doesn't have any plans to move out, either.
In a 2010 letter to Berkshire Hathaway shareholders, Buffett called it "the third best investment I ever made."
2. Sticking To The Basics
Buffett could afford the best cooking staff and chefs in the world who can cook him fancy meals every day, but he likes sticking to the basics.
In HBO's 2017 documentary, Becoming Warren Buffett, he said he does not like spending more than $3.17 on his breakfast. While prices have since gone up, Buffett explained his routine includes sausage patties and Coke, or a bacon, egg, and cheese biscuit when he's feeling "prosperous."
3. The Ultimate Luxury
The "do what you love" advice is cliched, but it's the "ultimate luxury," says Buffett.
In an interview with CNBC, he said, "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 every day — that’s really the ultimate luxury."
4. Stay Away From Credit Cards
Buffett does not believe in using credit cards. He thinks cash is better, even though it might seem a bit old school at a time when contactless and card payments are commonplace.
Paying interest on credit card debt is like throwing away money, according to Buffett. Instead, he suggests buying only those things that you can afford.
5. Wants Versus Needs
Lastly, it's important to differentiate between wants and needs. Although he can afford the best gadgets out there, he rocked a $20 flip phone as recently as 2020, when he finally upgraded to an iPhone.
He doesn't splurge on materialistic things like cars or yachts, either. "Do not save what is left after spending, but spend what is left after saving," he once said.
