I was reading a very interesting article about Warren Buffet, the Oracle of Omaha, who runs Berkshire Hathaway and is ranked among the world’s richest men. Turns out, Buffet doesn’t care one iota about appearances, material things, or even technology.
Today, Warren Buffet lives in the same house he purchased in 1958 (he bought it for $31,500 by the way). He loves to watch sporting events, grab a McDonald’s hamburger, and keep a cold bottle of Coke handy at all times.
Many have cited Warren Buffet as the master of value investing. He often says, “The first rule of investing is don’t lose money; the second rule is don’t forget Rule No. 1.” He employs this strategy in his personal life by living well below his means. As a matter of fact, Buffet earns a base salary of $100,000 a year (and has for the last 25 years), despite a net worth measured in billions. He avoids accumulating toys and other trappings of wealth because he views their maintenance and expense as a burden to the lifestyle he chooses to live: simple.
In an interview, he was asked what young people should be doing about money: “Stay away from credit cards,” he replied. Paying interest on credit cards means that not only are you living beyond your means, it also means you’re losing money. Both run contrary to Buffet’s philosophy.
When it comes to success and luxury, Buffet provides additional insight into his philosophy. “Success is really doing what you love and doing it well. It’s as simple as that. Really getting to do what you love to do everyday – that’s really the ultimate luxury…your standard of living is not equal to your cost of living.”
If your outgo is greater than your income, your upkeep becomes your downfall. It’s just better to hear it from a billionaire, isn’t it?
