3 Frugal Habits of Warren Buffett That Anyone Can Follow

Does your lifestyle actually compare to one of the world’s richest people?

According to Forbes, the “Oracle of Omaha” Warren Buffett is currently worth $143.6 billion. That puts him among the 10 richest people in the world. You don’t get to that status by throwing money away — and Buffett is particularly frugal.

His money-saving lifestyle choices are worth knowing, because they could help you follow a similar path.

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He Has Lived in the Same House for Nearly 7 Decades

You might think that Buffett has at least invested in a mansion for himself and his family, but that’s not true. According to Architectural Digest, Buffett has lived in the same house in Omaha, Nebraska, since 1958.

The house was built in 1921 and has five bedrooms with two and a half bathrooms. At the time, Buffett purchased the home for $31,500. Now that sum would be the equivalent of $329,505, which is still less than the average price of a home in the United States, according to Zillow. This means Buffett doesn’t have to worry about rising interest rates or a huge mortgage payment.

However, that’s not the entire story. Rising home values in excess of income and inflation leave the billionaire’s residence worth somewhere in the range of $1.5 million were he to sell it, according to Investopedia. He also used to own a second, more expensive home in California, but he reportedly sold it in 2018 at significant profit.

He Uses Coupons

Buffett says there’s no shame in the coupon game. According to Bill and Melinda Gates’ 2017 Annual Letter, Buffett once took the Microsoft founder out to lunch at McDonald’s and used coupons to pay for the meal.

Bill recalled that Buffett always appreciates a good deal, even at his billionaire status. He’s famously a fan of McDonald’s even without the coupons, but not even billionaires can resist sweetening that Value Menu deal.

He Doesn’t Go Into Debt

According to the Independent, Alice Schroeder’s book “The Snowball” quoted Buffett as saying he lives by the rule, “never lose money.” He expanded on that by saying he advises people to never go into debt or borrow money from others.

While not everyone has that privilege if they want to afford the cost of living, it’s certainly a solid principle to reach for as long as you’re able to. Every debt must be paid, usually with interest. Buffett prefers to keep costs low so his money makes more money, and that’s something everyone should emulate.

This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.

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