How Warren Buffett’s Grocery Shopping Habits Save Him Thousands Annually
When someone's worth more than $100 billion, you'd expect their grocery cart to be filled with expensive steaks, imported cheeses and other luxury foods. But Warren Buffett has built a reputation for treating everyday purchases the same way he treats investments: He looks for value and always avoids overpaying.
The billionaire investor still lives in the same Omaha home he bought in 1958 and is known for his frugal spending habits, including how he shops for food.
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Here are a couple of his grocery-shopping habits worth learning from.
He Sticks To Simple Meals
Buffett isn't known for gourmet cooking or expensive grocery hauls. His diet famously includes hot dogs, fries, popcorn, limited veggies, candies and cookies.
Though it’s far from healthy, it helps him keep his grocery list pretty straightforward. According to Bill Gates, Buffett’s long-time friend, he even once opened a package of Oreos for breakfast while staying at Gates' house.
Of course, that doesn’t mean you should follow the same junk food diet but sticking to simple meals that you know you'll actually eat can help you save tons of money on grocery bills.
He Doesn't Pay More Just Because He Can
One of Buffett's best-known financial principles is avoiding overpaying for anything, and that mindset extends to his meals as well. He has joked about choosing breakfast based on how the stock market performs.
"When I'm not feeling quite so prosperous, I might go with the $2.61, which is two sausage patties, and then I put them together and pour myself a Coke. $3.17 is a bacon, egg, and cheese biscuit, but the market's down this morning, so I'll pass up the $3.17 and go with the $2.95,” he said in his 2017 HBO documentary "Becoming Warren Buffett."
You don’t have to go with the cheapest option every time you go grocery shopping, but you’ll want to be mindful of your spending, regardless of how much you earn.
He Avoids Lifestyle Inflation
As Buffett's wealth grew, his grocery habits and diet didn't suddenly become extravagant. He still likes to eat the same affordable meals he did decades ago.
Many people fall into the trap of lifestyle inflation after getting a raise or a better job. They start spending $100 more on groceries every week, taking vacations more often or upgrading to a premium gym that they can barely afford.
But what helps Buffett save thousands of dollars on groceries every year is simply keeping his spending relatively consistent even as his net worth grows.
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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