4 Ways Warren Buffett Spends Less Money That Everyone Should Try

young warren buffett
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Saving money is important. Not spending money is equally important.

Saving money and not spending on two different things. Saving money is taking money earned and putting it directly into the bank or account to accrue money over time.

Not spending is the act of paying less for the items you need or refraining from buying unnecessary luxury items.

Warren Buffett is the king of not spending money. He’s pretty good at saving money too, but as this article points out, Buffett’s “frugal” ways are legendary.

“The 90-year-old chairman and CEO of Berkshire Hathaway doesn’t exactly live like a Kardashian — although he could afford to do so. Instead, it is quite the opposite: Buffett even once had a vanity license plate that read “THRIFTY,” and that license plate wasn’t lying.

Even those of us whose personal fortunes will never reach $1 billion, much less $100 billion, can take a few lessons from Buffett’s relatively frugal lifestyle.”

The article explains 8 ways Buffett is frugal with his money, but these four acts of not spending money are the most notable.

All of the spending habits listed here will be hard for the average person to give up.

However, once a dollar value is added to each, and a person sees how much money they’ll save over a month, six months, and a year, dumping these habits will be an easier pill to swallow.

Warren Buffett Money-Saving Tips

1. Coupons

Check out this story about Buffett clipping coupons and using them at Mickey D’s.

“Bill Gates marveled in a 2017 letter that he was once at a McDonald’s in Hong Kong with Buffett.

You offered to pay, dug into your pocket, and pulled out … coupons!” Gates wrote, noting that his wife, Melinda, even took a photo of Buffett and his coupons. “It reminded us how much you value a good deal.”

If a billionaire can use a coupon in front of billionaire friends, so can you, and the guy even had coupons IN ANOTHER COUNTRY.

2. Don’t Smoke or Drink

According to the U.S. Centers for Disease Control and Prevention, Americans spend over $80 billion on cigarettes per year. This averages out to about $188 a month.

Depending on the city, the average spending on alcohol ranges from $512 to $1,218 a year.

Not only are both a waste of money, but they’re also not exactly good for your health, which could lead to spending more on doctor’s bills, medications, and hospital visits.

3. Don’t Gamble

Over the last year, the online gambling habits of people soared due to the lockdown and sheer boredom.

Regular gamblers were more than six times more likely to gamble online compared to before the COVID-19 pandemic.

Gambling is a sucker’s game, at least according to Buffett.

Buffett is quoted as saying, “gambling is a tax on ignorance,” and the billionaire went so far as to install a slot machine in his house and pay his kids their allowance in dimes. Buffett knew they’d gamble their money away in no time at all.

4. Don’t Upgrade

From the article…

“Buffett famously used a Nokia flip phone for years, although he’s since moved on to an iPhone. But his phone ownership history reveals a truth: Buffett’s not all about paying big money for the latest and greatest tech.

‘I don’t throw anything away until I’ve had it 20 or 25 years,” Buffett told Piers Morgan in 2013.”

Even if you’re eligible for new, don’t opt for new. It’s going to cost you money, the money you can be saving. Just use the technology until it dies.

Chris Illuminati

Chris Illuminati is the author of five books and has written about personal finance, wealth, debt management, and entrepreneurship for numerous outlets including Wise Bread, Grow or Die, and Bankrate.