Legendary investor Warren Buffett says this decision of life is paramount

The house of Warren Buffett is the same one that he bought in 1958

Billionaires live in mansions, right? No Buffett.

He lives in the same residence in Omaha, Nebraska, which he bought in 1958 at a price of $ 31,500, the equivalent of about $ 270,000 in 2017 dollars. Is not planning to put his own house up for sale. "I will not trade for nothing," he told CNBC earlier this year.

With the money today, Buffett would have paid about $ 41 a square foot for the 6,570 – square – foot house. But these days, you will pay about $ 143 per square foot for a house in Omaha of this size and time, depending on the list of a house located near the multibillionaire.

If you want to live like Buffett, consider buying less housing than you can afford. Instead of paying expensive mortgage payments, you can spend more money on savings, retirement or vacation.

And if you have to take out a loan, you may be able to take out 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 buying a vacation home in Laguna Beach, California.

"If you make a mistake and the rates go up to 2%, which I do not think, it will be profitable," he said. "It's a one-way renegotiation – it's an incredibly appealing instrument for the owner and you have a one-way bet."

Buffett starts his day with a cheap breakfast

You might assume that billionaires are eating lunch in the most extravagant restaurants, ordering Benedict eggs and bottomless mimosas. Or, they hire a personal chef who can prepare whatever and when they want – right?

False. Adopting Buffett's lifestyle does not include paying high prices for a gourmet daily French toast in the comfort of your own home.

In terms of food, the billionaire investor is renowned for saving money by taking the fast food route. In fact, he may well start his day with a trip to McDonald's during his five-minute drive to get to work, reports CNBC.

If he feels rich, he will spend $ 3.17 for a bacon sandwich, egg biscuits and cheese. If the market is down, he could spend $ 2.95 on a sausage, egg and cheese sandwich. In a very bad day, he buys two sausage pies for $ 2.61, puts them together and washes them with a Coca-Cola that he pours himself.

Buffett is also known for opting for cheap food when he is on the go – but forget about bacon and cholesterol-soaked eggs at a local restaurant. Buffett's breakfast could consist of a package of Oreos, wrote his friend Bill Gates – yes, his good friend is the founder of Microsoft – written on his blog.

"One thing that was surprising to learn about Warren, is that he remained committed to eating what he liked at the age of 6," wrote Gates. "Of course, he went past baby food, but he's eating mostly hamburgers, ice cream and coca-cola."

Buffett explained his diet in an interview with Fortune in 2015: "I've checked the actuarial tables, and the lowest death rate is for children aged 6. So I decided to eat like a child of 6. This is the safest course I can take. "

Buffett buys cars at a reduced price

Although some CEOs use million dollar cars, you will likely find that Buffett is driving something much more modest.

In a BBC documentary, her daughter, Susie Buffett, said that he had bought cars that he could get at a reduced price – like those that had been damaged by hail. The cars were repaired and did not look damaged by hail and were now part of Buffett's lifestyle.

"You have to understand, he keeps the cars until I tell him:" It gets embarrassing – it's time to take a new car, "said his daughter in the documentary.

Buffett also informed Forbes in 2014 of his habits of buying cars – or their absence. "The truth is that I drive only 3,500 km a year, so I will very rarely buy a new car," he said.

Remember that the next time you look for a car: cars tend to depreciate quickly. Your financial situation may be better if you try to keep your car running well for as long as possible – or at least opt ​​to buy a used car instead of nine.

Buffett loves affordable hobbies

A commitment to live like Warren Buffett does not mean any work and no play. After all, even billionaires have hobbies. But compared to other CEOs, investors and famous entrepreneurs, Buffett's hobbies are much more affordable. For example, he likes to play bridge.

"If I play bridge and that a naked woman passes by, I do not even see her," laughed Buffett during an interview with CBS News in "Sunday Morning." Yes, Buffett is a self-proclaimed deckhand, and you might even surprise him playing the game about 12 hours a week.

"Once, I said that I would not mind going to jail if I had the three good cellmates so we could play bridge all the time," he said. he also said during the interview.

When Buffett is not busy becoming a business mogul, you may find him scratching his ukulele and singing. He has played for investors and at charity events. A video of him playing the instrument with Gates even became viral after being published on the Gates blog in 2016.

Buffett treats his friends well, but not extravagantly

What do you give to a friend who is also a billionaire? Buffett's long-standing friendship with Gates is legendary. The Microsoft magnate explained on his blog what has maintained their friendship over the years:

"I've learned a lot from Warren over the last 25 years, but perhaps the most important is the quality of friendship," he said. "It's about the kind of friend you'd like to have yourself – everyone should have the chance to have a friend as caring and kind as Warren." He goes to great lengths to ensure that people feel good and share their joy about life. "

And these little touches do not have to be expensive. For example, Buffett personally travels to the airport to pick up Gates whenever he's in town, calls frequently and sends newspaper clippings that he thinks Gates and his wife will appreciate. .

These little touches that matter to friends may well be the best thing for anyone looking to live Warren Buffett's lifestyle.

Buffett used a Nokia Flip phone long after the existence of a smartphone

Buffett will probably not spend $ 999 for the iPhone X. The billionaire revealed in an interview with CNN in 2013 that he was still using a Nokia clamshell phone.

"It's this one that gave me Alexander Graham Bell," he joked about his phone. "I do not throw anything until I'm 20 or 25 years old."

Even if it's tempting to always indulge in the latest technology, grab a page from Buffett's book and upgrade your phone only when you really need it. If you insist on buying the latest iPhone on the market, look for other ways to save on your phone expenses, such as using a phone plan without a contract or buying a family plan to share data.

Buffett does not crack for wallets and designer costumes

In an interview with CNN, Buffett revealed that he had been using the same black wallet for 20 years. It also avoids high-end costumes. Instead, he wears exclusively costumes created by a Chinese sewing entrepreneur, Ms. Li, whom he met in 2007.

"They are fine," he said about the costumes in an interview with CNBC in 2017. "We receive compliments about them." It's been a long time since I've received compliments on my but since I have been wearing Ms. Li's costume, I have been receiving compliments all the time. "

Take away: opt for quality products that will last a long time, rather than buying something just because it has a brand name.

Buffett Clips Coupons

Buffett proves that even billionaires still enjoy saving money. In Bill and Melinda Gates' 2017 annual letter, Bill remembered a trip with the investor during which Buffett had paid his fast food lunch with the help of coupons. He even provided a photographic proof.

"Do you remember the laughter we had when we went together to Hong Kong and decided to go to McDonald's for lunch?" "You offered to pay, dig in your pocket and go out … coupons! " Bill wrote. "Melinda just found this picture of me and the" big spender. "It reminded us of how valuable you are to a good deal."

Save on your next purchase – even if it's something as inexpensive as a McDonald's meal – using the applicable discounts, which you can easily find on coupons websites online.

Buffett has been working in the same office building for over 50 years

Buffett has stayed in the same office building since arriving at Berkshire Hathaway in the 1960s.

"It's a different place," Buffett said of the company's headquarters in Omaha in the 2017 HBO documentary, "Becoming Warren Buffett," reported CNBC. "We have 25 people in the office and if you go back, it's exactly the same 25. It's exactly the same We have no committee in Berkshire We do not have a public relations department. investors, we do not have a general attorney, we just do not do anything people just do for reasons of form. "

Even if you are not a business owner, you can still benefit from Buffett's way of thinking. That goes back to the old adage: it's not broken, do not fix it.

Buffett thinks to think outside the box to save money

In the biography of Roger Lowenstein's business man, "Buffett: The Making of an American Capitalist," the author says that after the birth of his first child, Buffett converted a dresser drawer into a space where to sleep instead of spending money on a crib. , reports Forbes. When it was the second child of the family, he borrowed a cradle instead of buying one.

Maybe having your baby sleep in a drawer may seem a bit extreme, but it's just one example of innovative thinking. Use the resources already available to avoid unnecessary expenses.

Buffett Values ​​Relationship on material things

Buffett explained his choice of living frugally during a 2009 Q & A session that he had conducted with a group of business school students.

"You can not buy health and you can not buy love," Buffett said, according to the Underground Value blog. "I'm a member of all the golf clubs I want to join […] I prefer to play golf here with people I like on the world's most chic golf course. […] Cars do not interest me and my goal is not to make people envious. "

And in an interview with People in 2017, Susie Buffett said about her father: "… it's really true that he does not care about a lot of money." Instead, she says, he insists on the family.

"I do not think people realize that he has many great-grandchildren and that he could tell you everything about what they do. He knows each of these children and he knows their life, "she said.