7 Frugal Living Tips Inspired by Warren Buffett

Frugal Living Tips Inspired by Warren Buffett.

It's not uncommon to observe that many of the wealthiest individuals globally embrace a lifestyle of simplicity despite their vast fortunes. With the ability to indulge in all kinds of luxuries, many still prioritize frugality in their daily lives.

One notable example is Warren Buffett, a well-known advocate for living modestly. As of 2023, Buffett's wealth is estimated at approximately USD 113.6 billion.

So, what are some frugal living strategies inspired by Warren Buffett? The frugal habits that define Warren Buffett's lifestyle:

1. Staying in His Long-Time Home

Despite being labeled one of the richest people in the world, Buffett continues to live in a home that exudes simplicity rather than opulence. He has chosen to reside in the same house for over 65 years.

Buffett purchased his five-bedroom home in Omaha, Nebraska, in 1958 for US$31,500. The 610-square-meter residence is located just a five-minute drive from his investment company, Berkshire Hathaway.

Buffett has labeled this home as his third-best investment, besides his wedding ring. His attachment to the house is so strong that he has no plans to upgrade to a more luxurious space.

"I’m happy living there. I would move if I were happier somewhere else," Buffett stated.

2. Driving an Affordable Car

Warren Buffett prioritizes practicality over luxury when it comes to vehicles. His daughter revealed that he often opts for a less expensive car, even choosing vehicles damaged by hail that he subsequently repairs.

Buffett has never shown interest in purchasing extravagant cars, believing such purchases are unnecessary. His latest vehicle is a Cadillac XTS, which he bought in 2014.

"Honestly, I only drive about 3,500 miles a year, so I rarely buy a new car," said Buffett.

3. Enjoying Inexpensive Breakfasts

When it comes to meals, Buffett practices frugality by opting for fast food for breakfast. He typically spends no more than US$3.17 on breakfast.

For the past five decades during his commute to work, Buffett has regularly stopped at McDonald's, alternating among three of his favorite breakfast options: sausage with bread, egg and cheese, or bacon with egg and cheese.

4. Steering Clear of Unnecessary Expenses

Buffett is also known for avoiding needless expenditures. He pays little attention to designer clothes or the latest iPhone models. For years, he used inexpensive phones before finally switching to an Apple smartphone in 2020.

He once shared a crucial piece of advice: "Do not save what is left after spending, but spend what is left after saving."

5. Engaging in Affordable Hobbies

Even billionaires like Buffett have hobbies, but his are quite affordable. He has a passion for playing bridge.

Buffett, who describes himself as a bridge enthusiast, dedicates around 12 hours a week to playing the game. In fact, he once said in an interview that he wouldn’t mind going to jail if he had three ideal cellmates to play bridge with all day long.

6. Finding Creative Ways to Save

Warren Buffett employs innovative strategies to save money. For instance, when his first child was born, he transformed a dresser drawer into a crib. When his second child arrived, he opted to rent a crib rather than purchase a new one.

7. Avoiding Debt Unless Beneficial

Warren Buffett emphasizes that one should avoid debt unless the purchase is guaranteed to be advantageous in the future. Essentially, this means steering clear of unnecessary purchases that don't contribute to investment value.

There you have it—some insightful frugal living tips inspired by Warren Buffett. So, are you ready to adopt some of these practices in your own life?