Borrow These Spending Habits

Dated: 04/24/2019

Views: 248

Image title

What is one thing Warren Buffett and Mark Zuckerberg have in common? Yes, both men are extremely wealthy, but both men also live routinely below their means. In doing so, they have created long-lasting wealth and habits we should all adopt. If you're looking to buy a house in the near future, then you know how important it is to avoid lavish spending. Unless you're stockpiling cash and have more than enough money to purchase all-cash, chances are you're a borrowing buyer just like the rest of us. After all, we do live in one of the most expensive counties and in a state that generously taxes.

Tip #1 - Drive inexpensive cars.

There are plenty of affordable options available to us that can get us from point A to point B. With technological advancements, there are affordable hybrid and electric vehicles that can get the job done while saving us even more money on gas. A Bugatti should not be at the top of the priority list. According to US News, Zuckerberg drives an entry-level Acura sedan.

Tip #2 - Buy an inexpensive home. 

You may be able to qualify for more, but you might not need that extra bedroom of 1000 square feet of living space. A smaller home may still meet all of your needs and, in choosing to live below your means, you can take the extra cash build your investment portfolio. Buffett still lives in Nebraska in a home he bought for $31,500 in 1958.

Tip #3 - Don't carry large amounts of cash. 

Stuffing our wallets with paper money can subconsciously have an effect on our spending habits. Our tendency to spend on unnecessary luxuries grows. Learn from the example set by oil mogul T. Boone Pickens. He shops with a grocery list and never brings with him more cash than is needed for that purchase.

Tip #4 - Look for bargains.

Be a bargain shopper. With a little planning, the use of technology and coupon codes you can save money in most areas of your life.  Buying certified pre-owned and driving a hard bargain can help save you thousands. On smaller items, opt for the gently used options on Amazon if you can rather than buying brand new. Take your savings and continue to build your investment portfolio or store them away in an emergency fund.

Blog author image

Kurt Galitski DRE#01348644

Distinctive Strategies that Deliver Record-Setting Results When you combine Kurt’s passion and knowledge of the real estate market, you really gain an appreciation for what makes Kurt different. Bu....

Latest Blog Posts

ADUs May Be Cheaper And Easier To Build Under New Bills

Several bills sitting on Governor Gavin Newsom’s desk would cut red tape and bring more in-law flats to backyards and garages across the state. The Legislature has sent the governor

Read More

Tips And Tricks For Selling Your Home With Pets

When it comes to selling your home, you want to get everything as close to perfect as possible. Decluttering and depersonalizing are a few of the many items on the checklist to get it "model home"

Read More

Ways To Improve The Marketability Of Your Home

As the busy summer months come to a close and we approach the fall and winter months, sellers with their homes still on the market or getting ready to list want to know how to make their home

Read More

Gen Z Prefers Real Estate Agents Over IBuyers

Nine out of 10 Generation Z adults, the youngest group to wade into the housing market, plan on using an agent to buy a home, according to a survey. The finding flies

Read More