Did you know that Warren Buffet is one of the most successful investors in the world? Knowing the savings tricks he uses every month could change your financial life.
While his wealth was not built overnight. This responds to habits and strategies that he has used for a long time to obtain the results that are visible and internationally recognized today.
That is why we want to share with you some of the tricks he uses, which were compiled by the media Business Insiderand that surely you can also put into practice to achieve your financial and professional goals.
Warren Buffett Savings Tricks
Possibly, the times of inflation that we are experiencing are the reason to start saving.
Before you start, answer yourself, do you usually save money in a recurring and automated way?
It is never too late to start. So if you don’t, start today; Well, your financial freedom is not something that happens overnight.
Sure, there are times when income isn’t enough to save money, but if you commit to starting small, you’re sure to see a difference in your finances.
The habit of saving is something that we are not normally taught at a young age, and that could make a big difference.
Those who have been exposed to this financial habit from a young age, more easily manage to incorporate it into their lives. However, this is not an excuse or limitation for you to learn it too.
How does Warren Buffett save money?
First, we will tell you a little about this businessman who has managed to become one of the most relevant investors in the business world.
Their achievements have become visible and are a point of reference for successful investors and entrepreneurs around the world.
This North American businessman, born in 1930, is today the largest shareholder, president and executive director of Berkshire Hathaway.
From a very young age, he was interested in learning about business, so he was dedicated to selling candy and using his income wisely at a very early age.
He was learning about the world of investments, supported by experts and putting his own knowledge into practice.
He is also a philanthropist, he has decided to donate his fortune in the future.
All of this, we believe, is enough to study their tactics and convince us that they are doing something right and we too could apply it to see our finances flourish.
Save money with these tips from Warren Buffet
1. Own home
One of the best investments that Warren Buffett has made is his house, bought in the 50’s, to which he has undergone modifications and today it is valued at one million dollars.
The key to this trick is that this investor does not need to live in luxury homes or have more than they really need. In this way he can use his money more intelligently.
Beyond home equity, the true financial education is found in a minimalist lifestyle.
2. To invest, never borrow money
This is one of your biggest keys to building one of the great wealth and successes at a financial level.
Whenever you have decided to invest money, it has been with your own resources and the money you have saved or generated throughout your life.
This way you avoid falling into debts that you might not be able to pay later and you are also aware that you can make movements according to your real finances.
And above all, avoid consumer debts that do not produce returns or are used to buy assets that appreciate or produce income.
3. Spend little on eating out
Although this investor could eat huge banquets whenever he wanted, he decides that his day to day should be frugal, including his breakfast.
He is known for his stories of breakfasts for less than 3 dollars on the way to work.
Perhaps you can think of options that are a little healthier than those of the fast chains but that do not demand large sums of money.
4. Save on everything
It is true that many times we need to spend money on the goods we need to live, but the reality is that being resourceful and taking advantage of what we already have is key to financial success.
5. Use cash
This investor is used to making all his payments in cash.
Possibly for him it is a little easier, but the idea of this is to avoid the use of credit cards as much as possible so as not to fall into high and unnecessary interest payments.
This is certainly something that banks do not want you to know.
6. Take advantage of discount coupons
This millionaire businessman has no problem using coupons with discounts.
The anecdote of when he invited Bill Gates to eat at a McDonald’s is famous, paying with discount coupons that he had in his pocket.
7. Live from your passion
This may sound a bit romantic, but the truth is that if you don’t enjoy what you do, you will hardly be able to succeed in your professional life, even personally.
Therefore, you have to have a good balance between what you know how to do well, what you enjoy and what you identify as having a good future.
8. Buy functional cars, not luxury ones.
This is certainly one of the points in which many people fall without thinking twice.
The allure of a luxury car can be very striking when you have the money available to buy it, however Warren Buffett recommends that you make this investment strategically.
Look for cars that offer good service, that are from a brand that promises durability, and that you don’t change it so regularly.
In fact, successful people no longer buy cars or fancy houses.
9. Don’t buy expensive brands
Sometimes luxury brands offer products of the same quality as more massive brands.
Buying just for recognition will lead you to lose money that you will never recover and that will not represent true happiness.
Warren Buffett You know this and don’t be lured into unnecessary purchases from these opulent brands.
10. Ask for loans, only if you need them
The only time this businessman took out a loan was a mortgage on his summer home.
Even so, he had the resources to buy it, but he preferred to use them for other investments that were more strategic for him at the time and that ultimately allowed him to repay the loan without problem.
Save, invest and be smart with your money
The keys that we have just shared with you are so simple that there is no excuse for you to put them into practice.
In fact, you don’t have to wait to do it, it all depends on your determination, discipline and that you start to change the way you relate to money.
These tricks can help all of us without exception.
Continue reading: This is how you save thousands of dollars with the Kakebo method easily