Before I get started here, this list comes from Warren Buffett. I’m simply borrowing it to show you how I stack up. If you want to see his words, click HERE.
It seems kinda strange that Warren Buffett would know much of anything about “poor” people. He has been a multi-billionaire for as long as I have known him. Everyone knows the story about him living in the same house he purchased 60 years ago, but what they don’t tell you is that the house is now ten times the size it was back then. But, he is known as a spend-thrift, who presently has over $100 billion in assets.
I wonder what is his definition of poor? From the topics on the list, I would guess it is someone making less than $70,000 a year.
To keep things straight, each item starts with the topic and my parsed words of his advice. Following that is how well I have done in following his advice, those words are in italic.
I Earnings Power – Spend your money on improving your talents.
(I spent literally all I could earn to pay my way through college.)
II. Credit Card Debt – Only a fool would have this kind of debt.
(I have never carried any credit card debt. Everything is paid off monthly)
III Bars and Pubs – Alcohol at bars and pubs is expensive.
(Except for a couple of wild years, I have never frequented bars to any extent)
IV The Latest Technology – Don’t buy every version of the latest technology
(I am a techie, so I will admit that this one I am lousy at.)
V Expensive Clothes – Practice simplicity in your wardrobe. (Zuckerberg, Buffett, and Jobs, all have very limited wardrobes)
(All of my hanging clothes will fit in a 3-ft wide closet)
VI New Cars – Don’t constantly buy new cars. They lose their value rapidly.
(I presently have a 12-year-old car, and a 33-year-old camper, and I don’t plan on ever buying another vehicle)
VII Gym Memberships – gym membership don’t make sense if you’re not committed to working out regularly.
(Never owned one)
VIII Subscription Services – Don’t use them. They charge your credit card automatically. This can make keeping subscriptions you don’t use or forget about entirely easy.
(some of my streaming services are by monthly subscription, but I keep a close watch on them)
IX Overusing Skincare Products – Find a natural and simple hair, face, and body care routine and stick to it. Buffett would warn about falling for vanity marketing.
(my total skin care is a bar of Lever soap and a bottle of Prell Shampoo)
X Frequent Nights Out – It’s just too expensive. Eat your meals at home. While he does eat out weekly at his favorite steakhouse, he is also a regular at McDonald’s.
(Except for a couple of times a year, I have never been much for expensive restaurants).
XI Gambling – Plain and simple – Don’t Gamble
(except for about a half dozen coins in slot machines, I simply don’t gamble)
XII Smoking – It’s a nasty habit for your health and personal finances.
(I quit smoking 32 years ago – Thank heavens)
11 out of 12 seems pretty good to me.
How about you?
How do you stack up?
2 thoughts on “12 Things Poor People Waste Money On”
Being honest, I would say 10 out of twelve. Gym membership ($11/month) and streaming services are important parts of our health and enjoyment.
I quit smoking almost 35 years ago, have never carried a credit card debt, and find gambling silly. For the rest of Mr. Buffett’s lists, I think he would be happy with our lifestyle. It was nice to know he and I agree on a few things.
I quit smoking 32 years ago. I hardly carry cash anymore, but, like you, never carried any card debt.