A couple of weeks ago I wrote about the modest houses that Warren Buffett and his business partner Charlie Munger, had lived in for most of their lives. (Just in case there is a reader who is not sure, these men have been highly successful investors for decades and are two of the wealthiest men in the world)
Today I have some snippets of advice that I found from their comments, regarding good saving and spending habits for us simple men in the street.
- Avoid debt for depreciating assets (That’s basically everything except a house)
- Be careful of buying too many things you don’t need
- Avoid costly habits, like dining out and designer clothes
- Do not save what is left after spending; spend what is left after saving
- Live below your means
- Maintain a frugal mindset
- “Someone is sitting in the shade today, because someone planted a tree long ago.” (Ignoring the power of compounding. i.e. Time for your investments)
- Invest in assets that generate income
- Track your expenses: know where your money goes
I think they are saying: Save first, then live a simple lifestyle on what you have left.
Food for thought.