When it comes to spending, Warren Buffett isn’t your average billionaire. Instead of buying anything he wants, the former Berkshire Hathaway CEO still values his dollar.
In fact, his money-saving philosophies from over the years are so down-to-earth, the average person could certainly benefit. Here’s a look at four of Buffett’s rules for saving on everyday expenses while still getting all you need.
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1. Focus on Value
Despite his wealth, Buffett doesn’t care about designer names. Instead of prioritizing flashy purchases, Buffett has long emphasized buying what offers the best value for the price.
You can apply this philosophy to any standard expense by seeking out well-made products with the features you need. This might mean focusing on store-brand products instead of their name-brand counterparts. Regardless, focusing on value ensures you’re stretching your dollar as far as you can in the right direction.
2. Seek Quality Over Quantity
There’s a difference between buying cheap and scoring a bargain. For example, in his 1989 letter to Berkshire Hathaway shareholders, Buffett wrote, “It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.”
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Keep this in mind when shopping. An item might have the best price, but if it’s low quality, it’s better to pay more for a product that’s actually worth your money.
3. Don’t Chase Trends
When something is just a fad, it typically doesn’t last. Therefore, it’s surely not a coincidence that Buffett doesn’t tend to follow market trends. Near the peak of the tech bubble in 1999, he wrote “The key to investing is not assessing how much an industry is going to affect society […] but rather determining the competitive advantage of [a] given company…”
This philosophy can easily apply to everyday expenses. Instead of purchasing every overpriced trendy item you see, stick to more affordable tried-and-true classics.
4. Take Advantage of Sales
Even Buffett loves a good sale. He’s quoted as saying, “Whether we’re talking about stocks or socks, I like buying quality merchandise when it is marked down.”
A great way to stick to a budget, seeking out sale items can allow you to get quality products at an affordable price.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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