23 April 2011

The Frugal Habits of the World's Richest Man

photo courtesy Google images
I watched a fascinating documentary today about Warren Buffet, who takes turns at being the world's richest man with Bill Gates. It's called The World's Greatest Money Maker: Warren Buffet

Mr Buffet has a personal wealth that is estimated to be more than $37 billion. His company, Berkshire Hathaway is worth $150 billion, he owns a quarter outright.

So what makes this billionaire different to all the other wealthy people in the world?

His attitude to money. This man lives life frugally, he embraces the Cheapskates way of life and is proud to say so.

He lives with his wife in the house they have lived in for over 50 years. He and his wife raised their three children in this home, and they were by no means spoiled. Indeed his son Peter tells the story of asking his dad for $5 so he go out with his friends and buy McDonalds for their dinner. His father gave him the $5, but he told him to bring the change back (which we have always done with our kids).  He said it with a smile, but he meant it. He wanted the change.

His wife clips coupons and shops on a budget. She runs the household on a strict budget and lights are turned off when no one is in the room, food isn't wasted and nothing is thrown away unless there is absolutely no other use for it.

Bill Gates says of Warren Buffett "he has never ramped up his ability to consume". What a testimonial!  he lives as he did when he had no money and was a struggling young husband and father! A lesson to learn for all of us.  In this day and age of out of control consumerism, knowing the richest man in the world shuns it is an incredible example for anyone wanting to live the Cheapskates way and enjoy debt free, cashed up life.

But for me the thing that sets Warren Buffet apart from other wealthy people is that he doesn't judge what he does by the standards of other people.

Instead, he lives the way he does and works the way he does so he can enjoy the things in life that are important to him.

Just like we do.  I've always said we choose to not spend our money on things that aren't important to us so we have the money to spend on the things that are.

It's why we are Cheapskates and live the Cheapskates way, to live life debt free, cashed up and laughing.


  1. Apologies: I'm such a Nosey.

    Nevertheless, it would be so interesting/informative to find out how much he has bequested, tithes & gives to Charity.

    However, I'm sure he is a very generous albeit happy man.

  2. Warren Buffet recently gave away over 50% of his wealth to charities on of which was the Bill Gates charity. He has told his children that he will be leaving no inherance to them as they are all well off.

  3. Thankyou for that update - that's an amazing amount to give away.

    Although we struggle to give our 10% we are richly rewarded in other ways.

    Leaving an inheritance for your children is sometimes a double-edged sword.

    However, it certainly has helped us out of some very tricky situations.



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