Warrant Buffett’s Humble Abode
Recently I was going over the PowerPoint from Coffee Cents which I heard about from J. Money over at Budgets are Sexy and one particular slide caught my attention. I was unable to attend, and even though the PowerPoint was obviously made for you to be there while it was being presented, I still enjoyed going over it and think that Coffee Cents would be a great time!
The slide that caught my attention was entitled “Inspiring Works”, had a picture of Warren Buffett’s actual house, and the title “Millionaire Next Door” by Thomas J Stanley among a few other things. After seeing a picture of Warren Buffett’s house, I instantly knew I was going to write about it. INSERT PICTURE HERE. Here you have one of the richest men in the world, and yet he is still living in the same house he bought for $31,500 in 1958 (assessed now at around $700,000). If ever you needed some inspiration to live within your means, I’d say look no further. The man could buy a theme park, multiple companies, multiple airplanes, still have enough cash liquid to buy everything again, and yet he still lives in a house worth $700,000.
Next time you feel like you want to go ahead and splurge a little, maybe buy some nice new 55 Inch Samsung LED TV, consider this-Warren Buffett still lives in a $700,000 house. As a matter of fact, let’s apply that philosophy to other things. Next time you want to eat that big fat juicy double quarter pounder with cheese as opposed to a much healthier salad, keep in mind, that Warren Buffett still lives in a $700,000 house. And fear not, for the next time you come up against a very intimidating adversary in your tennis league, fear not, for Warren Buffett still lives in a $700,000 house. Finally let not your heart be troubled when faced with upcoming deadlines, massive amounts of work, and incompetent employees, for we can all take comfort in the fact that Warren Buffett lives in a $700,000 house.
Ok enough of that. I should also mention that it is reported that Warren has a second home in Laguna Beach, California which is said to be worth $4 million. I’d say the point still stands. With an estimated net worth of 36 billion, or 36,000,000,000 (just to get the point across), a $4 million house is like chump change to him. My point in all this? For one, I like to look at billionaire homes, and two, I think this really is a testament to being frugal. Though my examples above were a little….weird….the essence of my message should hit home. Think twice before you purchase an extravagant gift to yourself, do you really need it?
Cool Billionaire Homes slide show from Forbes which I also obtained my figures from.
March 20, 2010
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myfinancialobjective · 
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Tags: Billionaire Homes, Warren Buffett · Posted in: Good Finds
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I know that frugality is commonly explained in many “Get Rich Slowly” book as the ultimate way to become rich but this method is highly over-hyped.
The reality is that you can only cut your spending up to a certain point (unless you want to live on the street with the same pair of shirt and pants your whole life). On the income side, there is simply no limit to how much you can earn so you should really focus on increasing your income and not decreasing your spending.
That being said, of course you should try and buy the black shirt at 20$ if the store next door sells it at 50$. But don’t obsess over buying a black coffee instead of a cafe latte to save .50$.
The reason I say this is that I see way too many people waste countless hours trying to save a few dollars. For example, I have a friend who was looking for a used car and he spent like an hour a day for 4 months reading reviews, checking car websites and going to dealerships to try and bargain for a better deal. That is simply a waste of time! He could have overspent 500$ on the car instead and worked on a side project or business that could have made him so much more money then he had saved.
All I am saying is focus your energy on earning more, not on cliping coupons and driving an hour out of town to save 15$ on a lamp.
Remember, Buffett didn’t become a billionaire by saving his pennies. He became a billionaire because he MADE more money then others.
Buffett is gr8!
Warren Buffett: What a Genuinely GREAT GUY! | My Financial Objectives - July 22, 2010
[...] I followed that up, which led to a link about Warren’s investment strategy here, a link about Buffett’s house there, and before you know it, I stumble upon a ton a stories about Warren Buffett donating a lot [...]
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