When it comes to spending, Warren Buffett isn’t an average billionaire. Instead of buying anything he wants, the Berkshire Hathaway CEO still values his dollar.
In fact, his money-saving philosophies are so down-to-earth, the average person could benefit from them. Here’s a look at seven of Buffett’s rules for saving money on everyday expenses, while still getting everything you need.
Focus on Value
Despite his wealth, Buffett doesn’t care about designer names. For example, instead of buying new cars, he’s been known to purchase slightly damaged vehicles and have them repaired for less than the cost of buying a new vehicle.
You can apply this philosophy to any standard expense by seeking out well-made products with the features you need. This might mean focusing on store-brand products instead of their name-brand counterparts. Regardless, focusing on value ensures you’re stretching your dollar as far as you can in the right direction.
Get Creative
When Buffett’s first child was born, he converted a dresser drawer into a bassinet to save the cost of buying one. This creative mindset can apply to everyday expenses, as well.
For example, if you’re redecorating your living room, you might search for items on local “Buy Nothing” groups and Facebook Marketplace. This can allow you to fill your space for free, or at a low price, instead of paying top-dollar for all new items at a store.
Seek Quality Over Quantity
There’s a difference between buying cheap and scoring a bargain. For example, in his 1989 letter to Berkshire Hathaway shareholders, Buffett wrote, “It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.
Keep this in mind when shopping. An item might have the best price, but if it’s low quality, it’s better to pay more for a product that’s actually worth your money.
Clip Coupons
Even Buffett clips coupons. In his and now-ex-wife Melinda’s 2017 annual letter, Bill Gates shared a story about not paying full price when dining with his fellow billionaire friend. “Remember the laugh we had when we traveled together to Hong Kong and decided to get lunch at McDonald’s? You offered to pay, dug into your pocket, and pulled out … coupons!”
If Buffett can spare a few moments to clip coupons, you can, too. The savings might seem minimal, but it adds up over time.
Limit Nights Out
Buffett has the money to dine out anywhere he wants, any night of the week, but he doesn’t. Instead, he stays in and enjoys a simple diet.
In his biography, “The Snowball: Warren Buffett and the Business of Life,” author Alice Schroeder quoted him as saying, “I like eating the same thing over and over and over again. I could eat a ham sandwich every day for fifty days in a row for breakfast,” Mashed reported.
There’s nothing wrong with enjoying nights out, but stay on budget by doing so in moderation.
Don’t Chase Trends
When something is just a fad, it typically doesn’t last. Therefore, it’s surely not a coincidence that Buffett doesn’t tend to follow market trends. Near the peak of the tech bubble in 1999, he wrote “The key to investing is not assessing how much an industry is going to affect society… but rather determining the competitive advantage of [a] given company…”
This philosophy can easily apply to everyday expenses. Instead of purchasing every overpriced trendy item you see, stick to more affordable tried-and-true classics.
Take Advantage of Sales
Even Buffett loves a good sale. He’s quoted as saying, “Whether we’re talking about stocks or socks, I like buying quality merchandise when it is marked down.”
A great way to stick to a budget, seeking out sale items can allow you to get quality products at an affordable price.
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