What Warren Buffett’s Food List Teaches About Smart Money
Warren Buffett may be best known for his investing success, but his diet has been making headlines for years. You are known, like most people, to drink Coca-Cola, eat McDonald’s and enjoy ice cream.
That inexpensive meal might not be what you’d expect from one of the world’s richest people. But the famous investor is seductive, and his approach to investing offers three lessons for people working toward long-term financial goals.
1. Shop based on value, not trends
Buffett’s diet consists of cheap and easy basics – and the same is true of much of his investment strategy. He has long been known to recommend low-cost index funds to many investors, and caution investors against chasing thrills and speculation in the market.
You can apply this grocery (and investing) lesson to all spending categories. Instead of chasing fancy cars and expensive products, sticking to simple, time-tested products pays off. But again, you shouldn’t buy cheap things that have no value. When shopping, think about what items will add value to your life and last a long time, and go with them.
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2. Prioritize consensus over compromise
Buffett picks what he likes and sticks to it. “If I eat 2,700 calories a day, a quarter of that is Coca-Cola. I do it every day,” the investor told Fortune in 2015.
While we certainly wouldn’t advise you to do the same, her love of soda points to a lesson you can take about your finances: If you find a product or strategy that works for you, don’t be tempted to change it. It takes time and effort to make each decision. If you browse too many products, you can fill your cart with unnecessary items. Knowing how you will spend your money and going to the store with a shopping list can help control your expenses.
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3. Spend on what makes you happy
Buffett lives frugally. He still lives in the home in Omaha, Nebraska that he bought in the 1950s, and has always advised people to live within their means. But she’ll still give up what makes her happy, like junk food (she told CNBC she’ll give up a year of her life to eat the way she wants).
You can use this lesson by making a list of what makes you happy and reducing the things you use that don’t fit into that category. Saving does not come down to how much money you have. As Buffett points out, some of the richest people are careful about how they spend their money, they don’t buy expensive houses and cars just because they can afford it.
A small move like canceling an unnecessary subscription if it doesn’t bring you happiness means you’ll have more money to put into your savings and investments.
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