10 Expensive Spending Habits Warren Buffett Avoids, and the Simple Swaps That Keep His Life Calm
Have you ever looked at a rich man and wondered why he still drives a plain car and lives in a plain home. Warren Buffett is one of the richest people in the world, yet his daily life looks like the life of a normal neighbor in Omaha.
Buffett still lives in the same five bedroom home in Omaha that he bought in 1958 for $31,500. He eats simple food that costs a few dollars each day, and he spends his money on good work rather than on grand shows.
I once read a story about Buffett eating a simple breakfast that cost less than four dollars, while his firm held billions in the bank. The story stayed with me, because it showed a man who was free from the need to impress anyone at all.
Most people think that rich people spend without care, and that a large fortune must mean a grand life full of luxury. Buffett proves the opposite with his daily choices, because he avoids the costly habits that drain most rich people dry.
This article lists ten costly habits that Buffett avoids, each with the plain reason behind it and a simple swap you can use. Each habit looks grand from the outside, yet each one hides a cost that is easy to miss, so read them one by one and pick the swaps that fit your life.
The short answer: Buffett avoids brand new luxury cars, fancy suits, big showy homes, private jets used for show, and lavish parties. He also avoids costly clubs, gold plated gadgets, fancy meals each day, costly collecting, and a large staff for simple chores, and he picks plain, useful, and calm instead.
Key Takeaways
- Buffett keeps a plain car for years, because a car is a tool, not a prize.
- Plain suits that fit well look smart, and they cost far less than fancy names.
- His 1958 Omaha home still fits his life, so he never traded it for a palace.
- Travel stays plain and purposeful, never a grand show in the sky.
- A warm meal at home beats a lavish party that guests soon forget.
- Good friends meet in plain places, not in costly private clubs.
- Gold gadgets add shine, not speed, so the plain model wins each time.
- Simple food each day keeps the body calm and the wallet full.
- Collect books, skills, and memories, not rare items that gather dust.
- A small team keeps your days your own, so hire only for real need.
1. Brand New Luxury Cars
Warren Buffett drives a plain car, and he keeps it for years instead of trading it for a new model each season. He has often been seen in a modest car that looks like the car of any neighbor on his street.
A brand new luxury car loses a large share of its value the moment it leaves the showroom floor. The same car, bought a few years old, can do the same daily job for far less money.
The luxury car also brings high costs that hide behind its shiny paint and soft seats. Service costs more, parts cost more, and a small scratch can cost a small fortune to fix.
| Choice | A plain car kept for years | A brand new luxury car |
|---|---|---|
| Price to buy | Low | Very high |
| Yearly upkeep | Low | High |
| Worry each day | Little | A great deal |
| Value after five years | Holds up well | Drops a great deal |
Buffett once said he buys a car that gets him from one place to another in safety, and he does not need more than that. The car is a tool, not a prize, and a tool should be judged by how well it works.
The simple swap is easy, and it works for nearly every driver on the road today. Buy a solid car that is a few years old, keep it in good shape, and drive it for many years.
Many people buy a luxury car to feel important, yet the feeling lasts only until the next new model appears. Then the car that felt grand starts to feel old, and the owner starts to dream of the next one.
Ask yourself what your car truly needs to do for you each day, and write the list on a small piece of paper. If the list says safe, dry, and steady, then a plain car will do the job well.
2. Fancy Suits and Costly Clothes
Buffett wears plain suits, and he has worn the same simple style for most of his long life. His suits are neat and clean, yet no one would call them grand or costly at first sight.
A fancy suit can cost as much as a month of groceries for a family, yet it does the same job as a plain suit that fits well. The cloth may feel a little softer, yet the man inside the suit is the same man.
Costly clothes also bring a quiet worry that plain clothes never bring to your day. You fear a stain, a tear, or a rainy walk that could spoil a costly jacket.
The simple swap is to buy fewer clothes, choose ones that fit well, and keep them clean and neat for years. A plain shirt, a neat jacket, and clean shoes can look smart in any office or meeting.
Shops will tell you that a costly suit shows success, and they will praise your taste the moment you try it on. Their praise is part of the sale, and it fades the moment you walk out of the door.
Think of the people you truly respect in your own life, and ask what made you respect them in the first place. It was their work, their honesty, and their kind words, not the price of their coat.
If you need one good suit for work, buy the best plain suit you can afford, and wear it with care for many years. Keep it clean, keep it pressed, and let it serve you well through many seasons.
3. Big Showy Homes
Buffett still lives in the same five bedroom home in Omaha that he bought in 1958 for $31,500. He could buy the grandest home in the land, yet he stays where his life feels calm.
A big showy home is not just a large price on the day you buy it, because it keeps asking for money year after year. More rooms mean more heat, more cleaning, more repairs, and more time spent on upkeep.
The simple swap is to choose a home that fits your real life, with room for family, work, and rest, and nothing more. A home that fits is easy to keep clean, easy to heat, and easy to love through the years.
Many people buy a grand home to show the world that they have made it, yet the world soon stops looking. Friends visit once or twice a year, and the grand rooms sit empty for the other fifty weeks.
Buffett raised his family in that plain Omaha home, and his children grew up with the same simple rooms and the same quiet street. The home gave them safety, warmth, and a steady life, and it never tried to impress a stranger.
Before you dream of a grand home, count the rooms you truly use in your own home each day. Count the hours you spend cleaning, and count the money you spend on upkeep each year.
A calm home leaves room in your money for holidays, learning, and help for people you love. A showy home eats that room, and it leaves you with grand walls and a tight purse.
4. Private Jets Used for Show
Buffett avoids costly travel that is bought only for show, and he keeps his trips short and plain when he can choose. His company owns jets for real business trips, yet he does not use a jet as a toy to impress people.
A private jet can cost thousands of dollars for a single short trip, and it needs a crew, fuel, and a place to park. The same trip on a plain flight costs a small share of that price, and it arrives at the same time.
The simple swap is to travel in a plain way, plan your trips with care, and spend the saved money on things that last. A neat hotel, a good book for the flight, and a calm plan can make any trip feel fine.
Costly travel often looks grand in photos, yet it rarely adds joy to the trip itself. A grand seat does not make the meeting better, and a grand hotel does not make the talk kinder.
Many rich people buy jets to show that they have arrived in life, yet the jet soon becomes a costly habit that is hard to stop. The crew must be paid, the jet must be kept in shape, and each trip adds a large bill to the pile.
If you travel for work, pick the plain flight, pack light, and use the travel time to read or rest. You will save money, you will feel lighter, and you will still reach your goal on time.
Buffett spends most of his days reading and thinking in his plain office, and he travels only when the trip truly matters. He does not chase grand journeys for the sake of a photo or a story.
5. Lavish Parties and Grand Events
Buffett is known for simple gatherings, plain food, and honest talk, not for grand balls with costly lights and rare dishes. His yearly meeting in Omaha feels more like a fair than a palace party, with simple food and plain chairs.
A lavish party can cost as much as a small home, yet the guests forget the food and the lights within a week. They remember the talk, the laughter, and the warm welcome, and those things cost very little to give.
The simple swap is to host a plain meal at home, cook food you love, and invite people who truly matter to you. A warm kitchen, a full table, and honest talk can beat the grandest hall in the city.
I have watched hosts spend a fortune on one night, and then worry for weeks about the bills that followed. They smiled for the photos, yet their hands shook when the final bill arrived at the door.
Grand events also bring a race to outdo the last grand event, and the race has no end in sight. Each party must be bigger, brighter, and more costly than the one before it.
Think of the best evening you ever spent with friends, and ask what made it the best of all. It was likely a simple meal, a good story, and a friend who listened well, not a costly show.
If you love to host, host often and host simply, with food you can cook well and a home that feels warm. Your friends will come for you, not for the show, and they will stay for the talk.
6. Costly Private Clubs
Buffett does not belong to costly private clubs, and he has never needed a grand club to feel at home in the world. He plays bridge with friends, eats simple meals, and talks in plain rooms that anyone could enter.
A costly club charges a large fee to join, and then it charges more each year just to stay a member. The food costs more, the drinks cost more, and the talk is often about who spent the most.
The simple swap is to build your circle from people you like, and to meet them in plain places that feel warm and open. A park bench, a small cafe, or a kitchen table can hold the best talks of your life.
Clubs sell a feeling of being special, yet that feeling fades the moment you leave the grand room. Outside the club, you are the same person, with the same work and the same family waiting at home.
Many people join a costly club to meet rich friends, yet they soon find that the friends they meet are also paying to be seen. The talk stays shallow, because no one wants to show a weak side in a grand room.
If you want a circle of good people, start with one friend, meet often, and be honest in your talk. Share a book, share a walk, and share a simple meal, and watch the trust grow with time.
Buffett reads for hours each day, and he learns from books and from plain talk with people he trusts. He does not need a club to teach him how to live, and he does not need a fee to prove his worth.
7. Gold Plated Gadgets and Flashy Tech
Buffett used a plain flip phone for many years, long after most rich people carried the newest smart phones in their hands. He did not need a gold case or a bright screen to run his life, and his plain phone did its job well.
A gold plated gadget costs many times more than the same gadget in plain form, yet it does the same daily work. The gold adds shine, not speed, and it adds worry, not joy, because you fear a scratch or a fall.
The simple swap is to buy the plain model that does the job, keep it safe, and use it until it truly wears out. A plain phone, a plain laptop, and a plain watch can serve you for years without a fuss.
Shops love to sell gold gadgets, because the shine makes the price feel fair to a buyer in a hurry. They place them under bright lights, and they tell you that you deserve the finest of all.
Flashy tech also ages fast, and the gold model of today looks old when the next model arrives next year. The shine fades, the price drops, and the buyer is left with a costly gadget that feels plain.
Ask yourself what you truly need from a gadget, and write the list before you walk into a shop. If the list says calls, notes, and photos, then a plain model will meet every need on the list.
If you love tech and you use it each day for work, buy a solid plain model and take good care of it. Keep it clean, keep it charged, and let it serve you well for many years.
8. Eating at the Fanciest Places Every Day
Buffett eats simple food, and he is famous for his love of plain burgers, ice cream, and a cold drink from a small shop. He could eat at the fanciest place in any city each night, yet he often picks a simple meal that costs a few dollars.
A fancy meal each day can cost more than a week of groceries for a family, yet it rarely tastes better than a good home cooked meal. The fancy place sells the view, the name, and the soft music, not just the food on the plate.
The simple swap is to cook at home most days, learn a few good meals, and save the fancy place for a rare treat. A home cooked meal can be warm, fresh, and full of flavor, and it costs a small share of a fancy bill.
Eating out each day also steals time that could be spent with family, with books, or with rest after work. You wait for a table, you wait for the food, and you wait for the bill, while the evening slips away.
Buffett once said he likes his food simple, and he has kept that habit for most of his life without shame. He does not pretend to love rare dishes, and he does not pay for a name on a menu.
A small rule in my own kitchen has saved me a great deal over the years, and it is simple to follow. I cook five days a week, eat out once for joy, and keep one day for leftovers and rest.
If you love fine food, enjoy it once in a while as a real treat, and taste every bite with a glad heart. A rare treat feels special, while a daily fancy meal soon feels dull and costly.
9. Costly Collecting Just for Show
Buffett collects good businesses, not rare things that sit on a shelf to impress guests who visit his home. He does not fill his rooms with costly art, rare stamps, or shiny items that do nothing but look grand.
Costly collecting can eat a fortune in a quiet way, because each rare item leads to the next rare item. You buy one watch, then you want the set, and then you want the case to hold the set.
The simple swap is to collect things that grow your mind or your health, such as books, skills, or good memories with family. A book can teach you for years, a skill can earn for years, and a memory can warm you for years.
Collectors often say their items will grow in value, yet most rare items are hard to sell and costly to keep safe. The market for rare things is small, and a buyer may not appear when you need one.
A collection bought for show also brings a quiet fear that plain owners never feel in their homes. You fear theft, fire, and a small scratch that could cut the value in half.
If you love one kind of item with a true heart, keep a small set that you enjoy each day, and let that be enough. Look at it, use it, and share the joy it brings you with friends who care.
Buffett shows that a rich life is built from work, learning, and giving, not from shelves full of rare things. His books, his notes, and his long talks with friends are his true collection.
10. A Large Staff for Daily Chores
Buffett runs his life with a small team, and he drives himself, reads his own papers, and keeps his office plain and small. His company office has only a few dozen people, which is tiny for a firm of its size.
A large staff for daily chores can cost a fortune each month, and it can make a simple life feel grand and slow. Each new helper needs pay, time, and care, and each one adds a new voice to your daily plans.
The simple swap is to do the small things yourself, and to enjoy the calm that comes with a simple day. Make your own tea, drive your own car, and read your own mail, and feel the freedom in those small acts.
Many rich people hire a large staff to show that they have arrived, yet the staff soon runs the house, not the owner. The owner must manage the staff, check the staff, and pay the staff, and the simple home becomes a small firm.
Doing simple chores yourself also keeps your body moving and your mind clear through the day. A short walk to the shop, a meal cooked with your own hands, and a room kept neat by you can bring a quiet joy.
If you need help for a real reason, such as health or a busy season of work, then good help is a wise and kind choice. The waste starts when help is hired for show, not for need, and the team grows while your own skills fade.
A calm life needs few hands, a clear plan, and a heart that enjoys simple work each day. Buffett shows that less staff can mean more freedom, more money, and more peace.
Conclusion
The ten habits in this article share one clear trait, and it is the same trait that runs through all of Buffett’s life. Each habit promises praise, grand looks, and a feeling of arrival, yet each one delivers bills and worry.
You do not need a fortune to live like Buffett, and you do not need to change your whole life in a single day. Pick one habit from this list, try the simple swap for a month, and watch how your money and your mood respond.
I hope this list helps you see that a rich life is not measured by grand things or costly shows. It is measured by calm days, good work, true friends, and time that is truly your own.
Start small, stay steady, and let your swaps grow into a way of life that fits your own heart. Your money will last longer, your days will feel calmer, and your family will feel the change in ways that matter.
