Legendary investor Warren Buffett is the sixth richest person in the world, as reported by manofmany.com in April 2021. You might think the American business mogul leads a lavish lifestyle like most of the rich and famous. . On the contrary, Mr. Buffett has simple tastes and lives modestly.
the Berkshire Hathaway The CEO makes tons of money investing but doesn’t waste it and throw caution to the wind. Canadians can accumulate their savings, pay off debt and get the most out of their money by adopting GOAT’s investment methods. Here are four ways to live on the cheap like this well-known billionaire.
1. Spend less that you can afford
Living beyond your means is the oft-repeated advice if you wanted to avoid financial dislocation. Buffett bought a house in Omaha, Nebraska, in 1958 for US $ 31,500, but continues to live in the same property in 2021. It has not improved to become a mansion. His advice is to buy less home than you can afford. Buffett prefers to invest more in savings, retirement and vacations than paying expensive mortgages.
2. Avoid follies
Buffett is not ostentatious like other billionaires. He doesn’t wear designer suits, drive luxury cars, or chase the latest smartphone models. Your finances should be better if you don’t buy things that depreciate quickly in value. The Oracle of Omaha throws parties or treats friends on occasion but not in an extravagant way.
3. Think outside the box to save money
The frugal gentleman thinks outside the box to save money. That’s why he prefers the fast food route for breakfast and no-contract phone plans. The business mogul also has hobbies, but they are affordable, like playing bridge. Buffett cuts coupons so he spends less or takes advantage of discounts.
Best reopening game
Buffett’s Berkshire sold all of its holdings in Restaurant Brands International (TSX: QSR) (NYSE: QSR) or RBI. He didn’t think the fast food chain’s business would survive closures due to the pandemic. He held the Canadian title for the longest time until COVID-19 changed his long-term position.
However, the restaurant stock has proven to be resilient. Plus, this should be one of the great choices for a reopening. In the first quarter of 2021 (quarter ended March 31, 2021), the $ 25.41 billion company recorded a 13.2% increase in net income compared to the first quarter of 2020. Burger King franchisor, Tim Hortons and Popeyes Louisiana Kitchen is back on track for growth, according to RBI CEO José E. Cil.
The current share price of $ 82.78 (+ 5.76% year-to-date) is 17.4% higher than a year ago. Besides the growth potential in the recovery phase, the dividend offer is decent at 3.17%. Buffett has dropped out of RBI, but there is still a premium income stock.
Be an atypical billionaire
Warren Buffett is a super rich guy. However, his ways are different from the typical billionaire. Long-term investing fascinates him, but massive wealth will not push him to engage in unnecessary spending. Be like him and save money where possible.
This article represents the opinion of the writer, who may disagree with the position of an “official” recommendation of a premium Motley Fool service or advisor. We are Motley! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer, so we’re posting sometimes articles that may not meet recommendations, rankings or other content. .
Silly contributor Christopher Liew has no position in any of the listed securities. The Motley Fool owns shares and recommends Berkshire Hathaway (B shares). The Motley Fool recommends RESTAURANT BRANDS INTERNATIONAL INC and recommends the following options: short January 2023 purchase $ 200 on Berkshire Hathaway (B shares), short June 2021 calls $ 240 on Berkshire Hathaway (B shares) and long January 2023 calls $ 200 on Berkshire Hathaway (B Actions).