Published on January 3, 2012
The most redundant advice we hear about money on a daily basis comes from the world of hip-hop. But in reality, majority of these rappers aren’t cashing in to the ‘big bucks.’ Aside from Sean ‘Diddy’ Combs, Curtis ’50 Cent’ Jackson, and Russell Simmons, the list isn’t significantly longer than the few. Jay-Z, also amongst the small crowd, dubbed himself the “Black Warren Buffet” on The Black Album. Since then, he’s had the pleasure of bragging about his dynamic story to riches alongside Buffet in Forbes Magazine.
Warren Buffet is respected around the world for several reasons. Not because he is a billionaire, but because he is a cheap billionaire. When he first began, he used a dresser drawer as a bassinet, borrowed necessities, and still remains in the same home today from the 1950s; He disowned his adopted granddaughter for participating in “The One Percent” documentary; donated billions of his dollars to thousands of charities; and has secured that none of his family will inherit his money, as 99% of his bank will be donated to charity after the death of he and his wife.
If I wanted to, I could hire 10,000 people to do nothing but paint my picture every day for the rest of my life. And the GDP would go up. But the utility of the product would be zilch, and I would be keeping those 10,000 people from doing AIDS research, or teaching, or nursing. I don’t do that though. I don’t use very many of those claim checks. There’s nothing material I want very much. And I’m going to give virtually all of those claim checks to charity when my wife and I die. (Lowe 1997:165–166)
Even though he was brought up in a wealthy family, his money today was allocated solely based upon his hard work, dedication, and smarts as a financial investor. While there are definitely more obstacles to overcome before having such a platform he grew up surrounded within, absolutely nothing is impossible with determination and drive. Forbes.com recently ran this list of a few of Warren Buffet’s spending habits according to Robert Lowensteins’ “Buffet: The Making of an American Capitalist.” Check out a few of my personal favorites below, and try to save as much money as you can this year. If you’re wise about buying what you need, you can be lucid about spending what you want.
- Brown bag breakfast and lunch at work.
- Cook meals instead of relying on takeout and ordering in. Eat at restaurants only on special occasions.
- Carry a refillable water bottle instead of buying bottled water. (purified fountains are becoming the new thing)
- Cut open squeeze tubes and pump bottles—for example, of shaving cream, sunscreen, cream rinse and moisturizer—once they yield nothing but air. (There’s usually at least another full ounce of liquid inside.)
- Wait for items you covet to go on sale—either in stores or online. (By then you may have decided you don’t them after all.)
- Look for items that can be dressed up or down.
- Leave your credit cards at home and pay in cash.
- Look for a partner whose money styles are compatible with your own.
- Shop for engagement rings at auction.
- To reduce the price of formula, nurse your baby for the first year, if possible.
- Hire painters and contractors during the winter. They are hungry for business then and likely to offer you a better price than if you ask for estimates during the busy summer months.
- Find the swankest hotel in town, and look for a cheaper place next door. (That way, you can enjoy the same desirable location, without paying top dollar for it.)
- Buy your own wine instead of drinking it at a restaurant.
Thinking like Warren Buffet doesn’t sound half bad! Do you think it’s possible to actually keep up?