Berkshire Hathaway Inc. Chairman and CEO Warren Buffett is immensely wealthy and notoriously frugal.
His frugality isn’t for personal gain. He has given billions to various charities and signed the Giving Pledge, affirming that over 99% of his fortune will be dedicated to philanthropic causes during his life or upon his passing.
Microsoft Corp. Co-Founder Bill Gates, one of Buffett’s close friends, recalls an incident in the 2017 annual letter posted on Gates Notes. During a trip to Hong Kong, the billionaire duo decided to grab lunch at McDonald’s. To Gates’ amusement, when Buffett offered to pay, he pulled out a handful of coupons.
In the letter, Gates posted a photo of himself and Buffett, whom he jokingly referred to as “the big spender.” He continued, “It reminded us how much you value a good deal.”
Even though both are among the world’s richest men, Buffett saves money any way he can. On his way to the office, he stops at McDonald’s for breakfast and has one of his three favorites: two sausage patties; a sausage, egg and cheese; or a bacon, egg and cheese. Like Buffett, Gates is also fond of fast food, often opting for classic staples like cheeseburgers and Diet Coke.
Buffett’s simple choices don’t end with food. He has been living in the house he bought for $31,500 house since 1958. He still drives a 2014 Cadillac purchased with hail damage. Before that, he drove an 8-year-old Cadillac. When he decides it’s time for a new car, he auctions off the old one for charity.
Buffett embraces his frugality with pride. “My life couldn’t be happier,” he said at Berkshire Hathaway’s 2014 annual shareholder’s meeting. “In fact, it’d be worse if I had six or eight houses. So, I have everything I need to have, and I don’t need any more.”
Trending: Discover the compelling reasons behind the staggering $110.5 million price tag of this painting and explore the world of high-value art investments. Don’t miss out on the opportunity to understand the art market dynamics.
He has often said, “Do not save what is left after spending; instead spend what is left after saving.”
For those inspired by Buffett, investing wisely can be a powerful tool in building wealth. While traditional stocks and bonds are common, investing in startups is another avenue. These young companies, though riskier, can offer significant returns if they succeed. Having a diversified portfolio that includes such investments can potentially maximize growth over time.
Here’s a simple strategy to follow for anyone looking to manage their finances more effectively:
Set clear goals: Begin with a clear savings goal for the year. Whether it’s for an emergency fund, a major purchase or to grow wealth, having a target helps maintain focus.
Automate savings: To avoid the temptation of spending, set up automatic transfers to your savings or investment accounts. This ensures that a portion of your income goes directly into savings before you see it.
Budget wisely: After setting aside savings, use the remaining money for your monthly bills and necessities and allow a bit for leisure or unexpected expenses.
Guard your savings: Treat the money in your savings or investment account as sacred. Resist the urge to withdraw it for impulsive purchases.
Let your money work: With the right investments, such as in promising startups or other assets, your money can grow, yielding returns that can further boost your financial health.
Don’t miss real-time alerts on your stocks – join Benzinga Pro for free! Try the tool that will help you invest smarter, faster, and better.
This article Bill Gates Recalls The Time Fellow Billionaire Warren Buffett Treated Him To Lunch At McDonald’s And Paid Using Coupons — ‘You Offered To Pay, Dug Into Your Pocket And Pulled Out … Coupons!’ originally appeared on Benzinga.com
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.