Trying to save money, pay off debt, and get the most out of your money? You may want to try living like a billionaire, but only if Warren Buffett is the billionaire. Berkshire Hathaway CEO Warren Buffett is the investor renowned as the Oracle of Omaha. But this American business mogul is more than simply a profession. Despite his $105.6 billion net worth, Forbes reports that the world’s sixth-richest man lives a life of simple taste, modest lifestyle, and generous charity.
Warren Buffett’s House Is the Same One He Bought in 1958
He still lives in the same house in Omaha, Neb., that he purchased in 1958 for $31,500 (approximately $285,000 in 2020 currency). Buffett has no plans to sell his own residence. He told CNBC earlier this year, “I wouldn’t swap it for anything.”
Buffett would have spent approximately $43 per square foot for the 6,570-square-foot house in today’s money. According to the current valuation given by the tax assessor’s office in Douglas County, Nebraska, where Buffett resides, the house is valued approximately $161 per square foot.
If you want to live like Warren Buffett, purchase a smaller house than you can afford. You’ll be able to put more money toward savings, retirement, or vacations instead of making high mortgage payments. If you must borrow money, Buffett advises getting a 30-year mortgage, which he describes as “the greatest instrument in the world.” In fact, when Buffett purchased a vacation house in Laguna Beach, California in 1971, he took out a 30-year mortgage.
“If you’re incorrect and rates go to 2%, which I don’t believe they will,” he added, “you pay it off.” “The renegotiation is a one-way street. It’s a very appealing tool for the house owner, and it’s a one-way gamble.”
Buffett Starts His Day With a Cheap Breakfast
You may imagine millionaires eating eggs Benedict and endless mimosas at the most opulent eateries. Alternatively, they can employ a personal chef to prepare anything they want, whenever they want — right?
Wrong. Paying exorbitant costs for daily gourmet French toast cooked in the comfort of your own home is not part of Buffett’s lifestyle.
When it comes to food, the billionaire investor is renowned for eating fast food to save money. In fact, according to CNBC, he may start his day with a stop to McDonald’s on his five-minute commute to work.
If he’s feeling really wealthy, he’ll splurge on a $3.89 bacon, egg, and cheese biscuit sandwich. He could instead spend $3.19 on a sausage, egg, and cheese sandwich if the market is down. On a particularly terrible day, he buys two sausage patties for $2.38, assembles them, and drinks a Coke that he pours himself.
Buffett is also renowned for eating inexpensive cuisine when on the road, but don’t expect him to order the cholesterol-laden bacon and eggs at a local eatery. Buffett’s vacation breakfast might be a bag of Oreos, according to his pal Bill Gates — yes, the Microsoft founder — who wrote about it on his blog.
“One unexpected fact about Warren is that he has essentially adhered to eating what he loved when he was 6 years old,” Gates wrote. “Of course, he’s moved on from baby food, but he still enjoys hamburgers, ice cream, and Coke.”
In a 2015 interview with Fortune, Buffett described his diet: “According to the actuarial statistics, 6-year-olds have the lowest mortality rate. So I made the decision to eat like a six-year-old. It’s the safest option for me.”
Buffett Buys Reduced-Price Cars
Although other CEOs drive million-dollar vehicles, you’re more likely to see Buffett in a far more modest vehicle.
Susie Buffett, his daughter, claimed in a BBC programme that he purchased vehicles at low prices, such as ones that had been damaged by hail. The vehicles were repaired and no longer seemed to be hail-damaged, and they became a regular part of Buffett’s lifestyle.
“You have to understand,” his daughter remarked in the video, “he retains vehicles until I tell him, ‘This is becoming embarrassing — time for a new car.”
Buffett also revealed his car-buying habits (or lack thereof) to Forbes in 2014. “The fact is, I only travel around 3,500 miles each year, so I don’t purchase new cars very often,” he said.
Keep this in mind the next time you’re looking for a car: Because cars depreciate rapidly, it may be better for your finances to retain your well-running vehicle for as long as possible — or at the very least, purchase a used car rather than a new one.
Buffett Enjoys Affordable Hobbies
It’s not all work and no pleasure if you want to live like Warren Buffett. Even millionaires have hobbies, after all. Buffett’s interests, however, are considerably more inexpensive than those of other well-known CEOs, investors, and entrepreneurs. For example, he loves playing bridge.
During a CBS News “Sunday Morning” interview, Buffett said, “If I play bridge and a nude lady comes by, I don’t even notice her.” According to a Washington Post article from 2017, Buffett is a self-described bridge addict who spends approximately 8 hours a week playing the game.
“I once remarked that if I had the proper three cellmates, I wouldn’t mind going to prison as long as we could play bridge all the time,” he added in the interview.
Buffett may be seen playing his ukulele and singing when he’s not busy being a business magnate. He’s performed for investors and charities. After being uploaded on Gates’ blog in 2016, a video of him playing the instrument with him went viral.
Buffett Treats His Friends Well
What do you get a millionaire who is also a friend? Buffett and Gates have had a long-standing relationship. On the occasion of Warren Buffett’s 90th birthday, the Microsoft billionaire wrote on his blog on what has kept their friendship intact through the years:
“Of all the things I’ve learned from Warren, the most essential thing I’ve learned from Warren may be what friendship is all about,” Gates wrote. “Warren is someone I respect and like. My buddy, I wish you a happy birthday.”
Buffett didn’t win Gates’ appreciation by making big, costly gestures. Instead, it’s about how he interacts with others. Gates described Buffett as a caring and considerate friend in a 2016 blog post, citing instances such as Buffett personally driving to the airport to pick up Gates whenever he visits Buffett’s hometown, phoning often, and sending news articles by mail that he believes Gates and his wife would like.
Anyone personal touches that matter so much to friends may be the greatest lesson for those aspiring to follow the Warren Buffett way of life.
Buffett Used a Nokia Flip Phone Long After Smartphones Existed
Buffett is unlikely to spend a lot of money on the next iPhone, despite the fact that he already has one. In a February 2020 CNBC Squawk Box interview, the billionaire claimed that he had received numerous iPhones, including one from Tim Cook.
He said that the Nokia flip phone, which he had had for years, is no longer with him, and that he now uses the most recent iPhone model, which at the time of the interview was an iPhone 11.
While it’s tempting to constantly get the most up-to-date technology, follow Buffett’s lead and only update your phone when absolutely necessary. If you must have the most recent iPhone, look for alternative methods to save your phone costs, such as utilizing a no-contract phone plan or purchasing a family plan that allows you to share data.
Buffett Doesn’t Splurge on Designer Suits
Buffett avoids wearing expensive designer outfits. Instead, he only wears suits designed by Madam Li, a Chinese sewing businesswoman whom he met in 2007.
In a 2017 CNBC interview, he remarked of the suits, “They fit wonderfully.” “They receive a lot of positive feedback. I haven’t had comments on my appearance in a long time, but now that I’m wearing Madame Li’s suits, I receive them all the time.”
The takeaway: Rather of purchasing anything simply because it has a brand name connected to it, choose quality products that will last you a long time.
Buffett Clips Coupons
Buffett demonstrates that even billionaires value the ability to save money. Bill Gates mentioned in his and Melinda Gates’ 2017 annual letter a trip he made with Buffett, during which Buffett paid for their fast-food meal using coupons. He also supplied photographic evidence to back up his claim.
“Remember how much fun we had when we went to Hong Kong together and chose to eat at McDonald’s for lunch? You offered to pay and then reached into your pocket, pulling out… coupons!” Bill wrote an essay. “Melinda just discovered this photograph of myself and “the big spender.” It reminded us of how important a good bargain is to you.”
Use relevant discounts, which you can readily discover on internet coupon sites, to save money on your next purchase, even if it’s something as simple as a McDonald’s lunch.
Buffett Has Worked in the Same Office Building for More Than 50 Years
Since joining Berkshire Hathaway in the 1960s, Buffett has worked in the same office building.
In the 2017 HBO documentary “Becoming Warren Buffett,” Buffett remarked of the company’s Omaha headquarters, “It’s a different kind of place.” “We have 25 employees in the office, and it’s the same 25 if you come back. They’re the same ones. At Berkshire, we don’t have any committees. There is no public relations department at our company. We do not have an investor relations department. We are without a general counsel. We just don’t go for things that others do for the sake of appearances.”
You can profit from Buffett’s style of thinking even if you aren’t a company owner. It all comes down to this: if it ain’t broke, don’t repair it.
Buffett Thinks Outside the Box To Save Money
According to Forbes, when Buffett’s first kid was born, he turned a dresser drawer into a place for the infant to sleep instead of spending money on a cot, according to Roger Lowenstein’s biography of the tycoon, “Buffett: The Making of an American Capitalist.” He borrowed a crib for the family’s second kid rather than purchasing one.
Making your kid sleep in a drawer may seem excessive, but it’s an example of thinking outside the box. To avoid needless expenditure, make use of the resources you currently have.
Buffett Values Relationships Over Material Things
During a 2009 Q&A session with a group of business school students, Buffett discussed his decision to live frugally.
According to the Underground Value blog, Buffett remarked, “You can’t purchase health and you can’t buy love.” “I’m a member of any golf club I want to be a member of […] I’d rather play golf with friends here than at the world’s most opulent golf course. […] I’m not interested in automobiles, and my aim isn’t to make others jealous of me.”
Susie Buffett stated about her father in a 2017 interview with People, “…it’s truly true that he doesn’t care about acquiring a lot of money.” Instead, she claims, he places a premium on family.
“I don’t believe people understand that he has a lot of great-grandchildren and could tell you everything about what they’re up to. He knows every single one of those kids and is well-versed in their lives,” she said.
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