Frugal Hack #10: Money Lessons from Warren Buffett
The true power behind Warren Buffett is that he is so trusted by both investors and non-investors alike. His integrity is never questioned and he has become a beacon of hope in difficult economic times. How does this translate to your life and your personal economy? Simple. Follow his example.
5 Life Lessons from Warren Buffett:
~ Ignore What Others Are Doing – Warren still lives in the modest Omaha home he bought in 1958 for today’s equivalent of $250,000. He is still seen driving around town in a Cadillac, eating burgs from Mickey D’s.
He could afford to live wherever he wants and drive the most expensive cars in the world, but he just doesn’t give a rip about possessions and owning the biggest and the best, it just doesn’t bring him happiness. What a great character trait to strive toward, especially for someone like me who has a weakness for bright and shiny objects.
He has a clear grasp of the concept that material things are not the end goal and has clearly reached the top of Maslow’s hierarchy of needs known as self-actualization. Buffett has become all that he can be and is now a teacher of his own philosophies. After all, anyone who plays a ukulele in public with the Texas A&M logo on it obviously doesn’t care what others think of him.
~ Have Full Transparency – Every January, Buffett takes off all his clothes and lets the world see his assets. While the assets in question may be in the form a performance letter to investors, he still has full transparency about how his investments have done and what his outlook for the future is.
I would urge you to carry this over into your finances. Be completely honest with yourself about where your spending habits have gotten you and how you plan to make changes in the future.
~ Be Patient – Buffett on patience, “You can’t produce a baby in one month by getting nine women pregnant.”
In terms of frugal living, if you’re trying to get out of debt and pay off high interest credit card bills it is very easy to fall into the trap of “I need to get out of debt NOW!” This type of thinking leads to failure, and often, even more debt. It requires a great deal of patience to stay on the correct path to achieve your financial goals.
~ Be Yourself – Uncle Warren always preaches the importance of staying true to yourself and your core values. This is seen in the way he invests, how he interacts with the media, and how he lives his life. When you try to emulate others you become a clone. The true power of building financial success, or maintaining a frugal lifestyle, is best seen when you stay true to who you really are. Not only will you sleep better at night but you’ll enjoy the added benefit of not having to compare yourself with anyone else. Be an original.
~ Find What You Love To Do and Do It With Integrity – Buffett on integrity, “Somebody once said that in looking for people to hire, you look for three qualities: integrity, intelligence, and energy. And if you don’t have the first, the other two will kill you.
You think about it; it’s true. If you hire somebody without [integrity], you really want them to be dumb and lazy.”
You might argue that it’s easy to be all of these amazing character traits when you are a billionaire and never have to worry about the bills being due or looking for your next job.
I would make the argument that it is because of Buffett’s character that he has achieved his success. All of his fame and continued success are not because of what he did after he became rich but are a direct result of what he did when he was a nobody from Nebraska.
What is your opinion of Warren Buffett? I look forward to your comments and please feel free to disagree with me. I promise I won’t delete your comment. This time at least. 😉
By Kyle James