Haters will call you cheap, fans will call you frugal, but if you can save half as much as Warren Buffett, you’re going to reach financial freedom.
If you don’t know much about the Oracle of Omaha, Mr. Buffett, just know he’s been the richest guy on the planet and is currently the third wealthiest man living.
And he’s famously known as the best investor of all-time—no big deal though.
Don’t be fooled. His investing talents aren’t the only weapon in his arsenal to build wealth. This guy is as thrifty as your grandma cutting coupons before every grocery visit.
Here are a few examples of Warren Buffett’s frugal ways that set himself apart from the rest of us:
- Lives in the same house that he bought in 1958
- Turned a dresser drawer into a crib for his first born child
- Drove a Volkswagen for the longest time until his wife replaced his car for him
- Never spends more than $3.17 for breakfast
By mixing an intense savings rate with wise investing, his wealth skyrocketed like you can’t imagine.
To be 100% clear, if he saved less he has less money to invest and a much smaller net worth. Taken to the extreme, with no savings then he has no money to invest, and no wealth.
So this article is going to focus on his top 1% savings rate since most articles on Buffett focus on his investing.
Now that Warren Buffett laid out the blueprint, all you have to do is follow it to master your money and build wealth.
Would Warren Buffett Approve Of Your Savings Rate?
How much do you shell out for breakfast? I’m convinced that 99% of you spend more than Warren Buffett does on an average day.
What’s your current car and living situation? Is it above your means, just at your means where if you lost your job you’d be screwed, or below your means to pocket extra cash?
We all know Warren would advocate to live below your means because he knows that with compound interest on your side, your money will double quicker than you realize. That’s how wealth is earned.
How much money do your currently save?
I recommend all young adults save at least 20% but ideally upwards of 50% if they truly want to be financially free in a short amount of time (around 10 years).
In all money matters, aim to be more like Warren Buffett and less like mainstream culture who is fixated on buying the new shiny object and trend of the month.
And when you think you’re saving enough, save just a little more. If you can do the hard work now, life gets much easier going forward.
Want more savings tips? Check out my Amazon bestselling book Freedom Mindset. It has everything you need to become a millionaire.
You don’t have to listen to me. By all means you can continue to spend money without a care in the world.
Except how long does that last until it comes back to haunt you?
Is it in eight months when you don’t have enough cash to buy a wedding ring and have to delay getting engaged?
Is it in three years when you can’t afford to quit your job and rely on your savings for six months until your side hustle starts making money?
Or is it in 10 years when you’re stuck at that same financial position you were a decade ago and are no closer to securing the financial future of your family and kids?
Procrastinate all you want. But fortune favors the frugal—just ask old Warren Buffett about that.
And the time is now for us young adults to be bold with our savings and investments so we can cash in like kings later.
P.S. Want to learn more about Warren Buffett? I read his biography Buffett: The Making of An American Capitalist and loved it.