He’s worth over $70 billion, which is more than the Gross Domestic Product (GDP) of Uruguay.
He’s worth more than a country! WTF!
Warren Buffet has been one of the wealthiest people in the world for several years and he started his obsession with numbers as a young child.
So he had a little practice to hit those big numbers. lol
In order to improve our connection with money as Millennials, I’m studying the strategies, successes, and failures of the wealthy.
Success leaves clues to how to get there, we just have to take the time to study it.
Grab some Oreo cookies, get inquisitive, and read up! You’ll be surprised at the simplistic life Mr. Buffet lives!
1. He’s Super Frugal
There’s a saying that goes, “the rich get richer by living like they are poor and the poor stay poor by living like they are rich.”
This saying is something you can definitely relate to Warren’s spending habits. Warren’s frugal habits have been consistent throughout his life but is a major contributor to his wealthy state.
Here are just a few ways he remains frugal:
Warren bought his house for $31,000 and still lives there to this day.
He buys cars with hail damage because they are cheap and runs them to the ground before buying another.
His children went to public school.
He only takes out $100k for his CEO salary (the average CEO salary for major corporations is $16 million)
His frugality is exactly what intrigues most people to him. Growing up in the recession was how he developed the thrifty habits.
As Millennials, we can use this knowledge to change our spending habits.
We don’t have to go so far as going back to flip phones, but can we cut some of the extra spending we do and enjoy what we have now.
Do we really need all those pairs of shoes, the most expensive tech toys, or a brand new car?
Most of the time, we have clothes in our closets with the tags still on or we’ve worn it only once.
What about all those modern decorations we bought from CB2 and never used, only to find them when we are moving.
If one of the wealthiest men in the world chooses not to buy 10 homes across the world but he can certainly afford it, then we should take a second look at our consumption.
Even if we can easily afford something, ask yourself do we really need to buy it or will it cost us more in time and maintenance to keep it?
2. Do What Others Would Not (Independent Thinker)
Warren was great at doing things that would make him money, but these might be habits that would seem inconvenient for others.
He’s very confident in his decision making even if it’s outside of the norm.
As a kid, he woke up early to deliver the newspaper for the Washington Post before school. He would make as much money as some people did working full-time in that era.
Plus, he later owned a portion of that newspaper when it was going under during the Nixon era.
What are things that might seem inconvenient for us but by putting in the hard work now, may pay off major dividends in the future.
Are you willing to put in extra work before or after your daily routines, read books on socializing so you can network with more folks?
3. Be Creative and Look for Opportunities
Like I said earlier, Warren was a numbers guy even from his childhood. During the recession era, he would buy a 6 pack of soda for 25 cents and sell them for 05 cents each.
As an adult, he looked for stocks that weren’t the popular choice but still had some good money potential in them.
Keeping his eyes open for opportunities was his biggest strength. He’s an avid reader and doesn’t even have a computer on his desk because he’s always reading on current affairs or financial statements.
With the information he gathers from reading, he then buys multiple amounts of stock in a company he feels is undervalued at the time.
Sometimes going through our daily routines, we get blind spots towards opportunities that are right in front of us.
Keeping our eyes, ears, and mind open to possibilities might be the trigger for more success in our future.
4. You Can Make Money and still be Honest and Ethical
Warren values having a reputation of high integrity. He is actually the guy to call when other businesses are in trouble.
In fact, he was the go to guy when the company Solomon Brothers was in a major Financial Scandal. Warren was able to give his word to the SEC and delay the liquidation of Solomon Brothers stocks.
In 2011, He won the Presidential Medal of Freedom which is only given to honorees that helped the securities and national interests of the US.
When we get frustrated with money, we can hastily look at the super rich as greedy, unethical, and money hungry.
But Warren Buffett stands as proof to rethink that myth and to realize not every wealthy investor is out to trick us out of our money!
5. He’s Comfortable with Money
He’s totally comfortable and confident with his money.
So much so, He gave away $37 billion worth of stock to charity and didn’t flinch. That’s Billion, with a B.
He doesn’t buy the super expensive cars or homes to show how rich he is to the world. He’s perfectly happy with his cherry coke in hand.
He states he does not want his children to inherit all his money and not have any motivation in life.
He wants to give them enough money to enjoy but then he will donate the rest of his money to charities.
Sometimes it’s hard to give an extra tip to a waiter, but Mr. Buffett gave away $37 Billion!
He knows he’s better at making money and is okay with giving it to the less fortunate.
How can we get this comfortable with our money?
Learning about Warren Buffett, I was astonished of how much my perspective was changed on some areas with money.
Could there be some improvements you can make to being more frugal or comfortable with money?
Leave a comment below and let me know your thoughts on Warren's uncommon financial Habits.