Most people associate wealth with luxury and carefree spending. The reality, however, is different. Successful people usually prefer living in a modest home.
I often talk about Warren Buffett on this channel, so we’re going to use him as an example.
So, Warren Buffett, everyone’s favorite billionaire investor, lives in a modest home in Omaha, Nebraska.
He purchased the property for $31 500 back in 1958 (which would be about 250 thousand dollars today). Now, this same property is worth an estimated $652 619
Not “cheap” by any means, but entirely affordable, especially for someone as successful as him.
By his own words, this 6 570 square foot property was the “third-best investment” that he’s ever made.
It consists of:
- 5 bedrooms
- 2.5 bathrooms
- a simple fence
- a couple of cameras for security
And … that’s it!
Why is he staying in such a modest home?
When asked by the BBC, he said that it’s because he “feels happy” living in a modest home.
Because it’s all about the mindset.
Of course, he can afford to buy an extravagant mansion. He could easily afford a castle. But he doesn’t need one.
And most people realize this during their journey to success.
If you want to succeed in the long term, you need to be good at managing your expenses. You need to master budgeting and carefully regulate your finances. So, you adopt this mindset of thinking forward and only spending when you absolutely have to.
And, once you get to a point where you do have more than enough resources to spend, you realize that … you don’t feel the need to spend them anymore. You realize that you’d be better off investing your money into assets that you could use in the future.
This is also why I’m such a huge fan of minimalism and having a modest home. It fits perfectly into my mindset, it helps me stay on track with my financial goals, and it also keeps my carbon footprint in check (because I’m also big on eco-friendliness). Check out my other blogs such as, “Why Is Warren Buffett Selling These Stocks?“.
Thank you for reading, and I’ll see you all next time!
Recommended books for further reading:
- Stock Market Investing For Beginners: The Investment Guide
- The Barefoot Investor: The Only Money Guide You’ll Ever Need
- Stock Market Investing For Beginners: The Investment Guide – How to benefit from the crisis, invest in stocks and generate long-term passive income incl. ETF and Stock Picking Checklist
- The Stock Market Investing Guide #2020: From Beginner to Intelligent Investor within 30 Days – How to Save Money, Generate Passive Income and Reach Financial Freedom
- The Financial Times Guide to Investing:The Definitive Companion to Investment and the Financial Markets: The Definitive Companion to Investment and the Financial Markets
If you are looking to open an investment account, follow these links below:
- Passive income
- Silver & Gold coins
- Interactive Brokers
(‘68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.)