Borrow These Spending Habits

By Kurt Real Estate Nov 23, 2019

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.