In today’s world, spending money wisely has become a rare quality as there are countless ways to splurge — from expensive cars and luxury houses to branded items and even the pressure to show off on social media. If you are someone who often spends money unnecessarily or mindlessly and wants to break this habit, it might be time to listen to Warren Buffett, one of the most successful investors of all time. Known for his simple yet powerful financial wisdom, Buffett has valuable lessons on saving and investing that can change the way you think about money.
Buffett’s life is an example of the fact that it is possible to live a simple life and make successful investments without any frills, even if you have billions in assets. One of his most popular Buffett quotes is – “Rule No.1: Never lose money. Rule No.2: Never forget Rule No.1.”
These rules are not just applicable to the stock market but also apply to every financial decision made in everyday life. Buffett, the 94-year-old billionaire and CEO of Berkshire Hathaway, believes that only one who knows where not to waste money can protect money.
Also read: Warren Buffett’s 7 golden rules for mutual fund investors
Let’s take a look at 5 common but useless things that Buffett advises people to never spend their money on.
1. Buying a new car
Whenever someone gets a new job or promotion, the first thing that comes to their mind is to buy a shiny new car. But Buffett considers this one of the biggest mistakes made by most people. He says that the value of a new car depreciates as soon as it comes out of the showroom, and this value keeps falling year after year, and goes down by up to 60% in just 5 years.
Buffett himself, despite having assets worth billions of dollars, owns a 2014 Cadillac XTS, and that too he bought from General Motors at a huge discount. He believes: Why buy something that loses value the moment you drive it off the lot? The message here is that a car is just a means of transportation, not a measure of one’s success. A car that is serving its purpose but is becoming a burden on your balance sheet every day is not wise.
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