Warren Buffett is Crazy Rich, But Still Lives These 7 Frugal Tips Lifestyle – 1 hour ago

Jakarta, CNBC Indonesia – Some people may think that the lives of the richest people in the world are full of luxury because they can buy all the things they want. In fact, Warren Buffett’s life is far from glamorous, even though he is in 5th place on the list of the richest people in the world Forbes.

In 2023, Buffett is estimated to have wealth of US$ 113.6 billion or the equivalent of IDR 1,691.05 trillion. Even though his wealth is fantastic, Buffett has always been known as a believer frugal living.

In 2009 during a question and answer session with business school program students, he explained the reasoning behind his frugal lifestyle: “You can’t buy health and you can’t buy love.”

Here is a lifestyle frugal living that Warren Buffett lives by.

1. Live in an old house

Appearance of Warren Buffet's House (Colleen Kane @COLLEENKANE via CNBC.com)Photo: Appearance of Warren Buffet’s House (Colleen Kane @COLLEENKANE via CNBC.com)
Appearance of Warren Buffet’s House (Colleen Kane @COLLEENKANE via CNBC.com)

The 92-year-old legendary investor remains in the house he has lived in for 65 years.

Buffett faithfully lives in a five-bedroom house in central Omaha, Nebraska, which he bought for US$31,500 in 1958. The 610-square-meter house is located in a corner of Omaha, just a 5-minute drive from the offices of Buffett’s investment company, Berkshire Hathaway.

Buffett said in a letter to shareholders in 2010 that he loved his old house so much that the house he bought was the third best investment he had ever made, apart from a wedding ring.

In fact, Buffett has no plans to sell his house in Omaha for a more luxurious one in the near future.

“I’m happy living there. I’d move if I could be happier somewhere else,” Buffett told the BBC’s Evan Davis in 2009.

“This house is fine, really,” said the Berkshire Hathaway boss.

2. Cheap breakfast

When it comes to food, this trillionaire is known to save money by taking the fast food route. For breakfast alone, he never spends more than US$3.17 or less than Rp. 50 thousand.

On his way to the office for the past five decades, Buffett chooses to stop at McDonald’s and alternately order one of his three favorite menus, namely two sausages and bread; eggs and cheese; or bacon, eggs and cheese.

3. Drive a cheap car

Even though he has abundant wealth, Warren Buffett instead chooses a simple car.

In the BBC documentary, his daughter said Buffett bought cars he could get cheaper, such as cars damaged by hail. The cars were then repaired.

“You have to understand, he kept the car until I said, ‘The car is getting embarrassing, it’s time to buy a new car,’” his daughter said in the documentary.

He was never interested in owning a luxury car because for him it was not necessary.

His newest car is a Cadillac XTS which he purchased in 2014.

“Actually, I only drive about 3,500 miles a year, so I would very rarely buy a new car,” he told Forbes.

4. Have an affordable hobby

Committing to living like Buffett doesn’t mean you can’t enjoy the game. After all, even billionaires have hobbies.

However, compared to other famous CEOs, investors and entrepreneurs, Buffett’s hobbies are much more affordable. For example, he enjoys playing bridge.

“If I’m playing bridge and a naked woman walks by, I don’t even see her,” Buffett said.

Buffett admits to being a bridge addict. He plays the game about 12 hours a week.

“I once said that I wouldn’t mind going to prison if I had three proper cellmates so we could play bridge all the time,” he said in the interview.

5. Don’t give expensive items to other people

What do you give a friend who is also a billionaire? Do you give expensive items or something else? But this does not apply to Buffett.

Buffett’s long-standing friendship with Bill Gates is legendary. The Microsoft personality explained on his blog what has kept their friendship strong over the years.

“I have learned many things from Warren over the past 25 years, but perhaps the most important is about friendship,” he said.

“Everyone should be lucky enough to have a friend as wise and kind as Warren. He went out of his way to make people feel good about themselves and share his joy about life,” he explained.

And sharing happiness doesn’t have to be expensive. For example, Buffett drove himself to the airport to pick up Gates whenever he was in town, called frequently, and sent news clippings by mail that he thought Gates and his wife would like.

6. Avoid unnecessary expenses

Warren Buffett doesn’t care much about famous designer clothes or the latest iPhone models. He only used cheap phones for years before finally using an Apple smartphone in 2020.

Buffett avoids unnecessary spending and once said, “Don’t save what is left after spending, but spend what is left after saving.”

7. Find creative ways to save

When Buffett’s first child was born, he converted a dresser drawer into a crib. Then, when her second child was born, she rented a crib, instead of buying a new one. He always finds creative ways to save money.

[Gambas:Video CNBC]

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