11 Ways Warren Buffett Lives Frugally
11 Ways Warren Buffett Lives Frugally
GOBankingRates By Amanda Garcia Wed, July 20, 2022
Trying to build your savings, pay off debt and make the most of your money? You might want to try living like a billionaire — but only if that billionaire is Warren Buffett. The investor — known as the Oracle of Omaha — is the CEO of Berkshire Hathaway. But there's more to this American business magnate than just his job.
Despite his roughly $125.1 billion net worth, according to Forbes, the eight-wealthiest man in the world enjoys a life of simple taste, frugal living and generous philanthropy. Here's a look at Warren Buffett's tips for living frugally.
Despite his roughly $125.1 billion net worth, according to Forbes, the eight-wealthiest man in the world enjoys a life of simple taste, frugal living and generous philanthropy. Here's a look at Warren Buffett's tips for living frugally.
Warren Buffett's House Is the Same One He Bought in 1958
Billionaires live in mansions, right? Not Buffett. He lives in the same residence in Omaha, Neb., that he bought in 1958 for $31,500, the equivalent of roughly $285,000 in 2020 dollars. Buffett has no intention of putting his own home up for sale. "I wouldn't trade it for anything," he told CNBC earlier this year.
POLL: Do You Think You Will Be Able To Retire at Age 65?In today's money, Buffett would have paid about $43 per square foot for the 6,570-square-foot home. But these days, the home is worth about $161 per square foot, according to the home's current value listed by the tax assessor's office in Douglas County, Nebraska, where Buffett lives.
If you want to live like Buffett, consider buying less home than you can afford. Instead of paying pricey mortgage payments, you'll be able to put more of your money toward savings, retirement or vacations. And if you must take out a loan, perhaps get a 30-year mortgage — it's "the best instrument in the world," Buffett told CNBC.
In fact, Buffett took out a 30-year mortgage in 1971 when he bought a vacation home in Laguna Beach, California. "If you're wrong and rates go to 2%, which I don't think they will, you pay it off," he said. "It's a one-way renegotiation. It is an incredibly attractive instrument for the homeowner and you've got a one-way bet."
Buffett Starts His Day With a Cheap Breakfast
You might assume billionaires brunch at the most extravagant restaurants, ordering eggs Benedict and bottomless mimosas. Or, they hire a personal chef who can whip up whatever and whenever they want — right? Wrong. Adopting Buffett's lifestyle doesn't include paying high prices for daily gourmet French toast prepared in the comforts of your own home. When it comes to food, the billionaire investor has been known to save money by taking the fast-food route.
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