Warren Buffett: 10 Things Poor People Waste Money On
Warren Buffett has a reputation for his simple financial wisdom. His advice is certainly worth listening to, especially if it helps you avoid making money mistakes.
According to Warren Buffett, here are 10 things poor people waste money on and what he does instead.
The most important investment you can make is investing in yourself. Anyone who hopes to be successful should read 500 pages a day.
1. Low-Value Investments
Buffett is also very against credit card debt. He prefers to rely on cash instead of using a credit card.
2. Credit Card Debt
Buffett suggests buying quality items that last longer rather than cheaper, lower-quality alternatives.
3. Quantity Over Quality
Buffett doesn’t care about having the latest technology or designer labels. he used a $20 flip phone for several years before upgrading to an iPhone in 2020
4. Unnecessary Spending
Cars are depreciating assets. most new vehicles have a 20% drop in value in the first year. So instead of buying a new car, Buffett prefers to buy used vehicles at reduced prices.
5. New Cars
Even Warren Buffett looks for good deals. Years ago, Buffett once treated Bill Gates to a meal at a fast food restaurant and used coupons to help pay for the meal.
6. Full-Price Purchases
Buffett has a very simple diet and doesn’t like to go out much. Eating out frequently can drain finances; cooking at home is more economical.
7. Dining Out
Buffett lives in a modest home he bought decades ago, emphasizing that a higher cost of living doesn’t equate to a better standard of living.
8. Expensive Homes
When you’re shopping and see something you like, ask yourself whether you really need it or just want it.