Wow! People Waste 70% of Their Money on These 3 Things! Do YOU?
Save time so you have it in retirement. This slightly modified proverb shows quite well that the idea of saving for later is not a completely new one. Unfortunately, for many people, mainly women, retirement still means hardship. The reasons for this are well known, but there is no improvement in sight on the political or economic level. As is so often the case in life, the only help with regard to providing for later is self-help. But instead of throwing one's laboriously saved money into the greedy maw of dubious pension insurances, private asset provisions or even highly speculative investment projects, saving can be made much simpler and, above all, safer with a few simple calculations. When saving, it pays to learn from the masters. In this article we exclusively present the three top saving tips of self-made billionaires Warren Buffett and Gordon Sabatier.
1. Living with Warren Buffett
Financial mogul and investor Warren Buffett is one of the richest people in the world. On the famous Forbes list of the super-rich, he currently ranks sixth with an estimated fortune of 104 billion dollars. But he is also in great demand as a speaker and is not stingy with his enormous knowledge on the subject of money and its increase. Once asked where he saw the greatest savings potential for the average earner, he said housing. Most people spend about 30% of their net income on rent or home purchases. Buffett himself lives in a modest single-family home in Omaha that suggests absolutely nothing of the wealth of its occupants. The financial genius puts the value of his house at 0.001% of his wealth. Now this is admittedly easier said than done for a billionaire than for the rest of us. But the moral of this story is actually: Saving starts with a smaller home, which ideally should be as close as possible to your workplace. The next big chunk of change we unwittingly spend is our own car. You might be able to guess what millionaire Gordon Sabatier thinks of that.
2. Millionaires ride bicycles
No, they actually prefer to walk to work. At least Gordon Sabatier emphasizes this fact again and again when he shares tips for saving and increasing money on his website. After all, someone like him, who was able to retire early as a millionaire at age 30, should know. His tip: In addition to the goal of owning as small a home as possible as early as possible, this should also be within walking distance of your workplace, because not everyone is retiring as a millionaire at age 30. The way to work and back is a cost factor, but also costs time that can be filled with much better things. Car payments can cost hundreds of dollars per month, depending on the model. Those who can save here will save a substantial sum – a nice way to supplement the retirement fund. Those who then have to pay extra for parking, of course, are wasting another large part of their hard-earned income on their piggy bank on four wheels. However, the idea of parting with their own car is still unthinkable for many people. They spontaneously feel transported back to their schooldays at the thought of public transportation, and walking or biking even equates to a loss of social face for some. But not only would you save a lot of money. Public transportation is usually a great way to get work done. The daily commute would thus actually add value to your day. And besides, anyone who takes to the bicycle or walks is doing their health a great deal of good in passing, so to speak. Speaking of good things, the third tip for saving money is the second most beautiful thing in the world. The good thing about it is that you not only save a lot of money, you gain quality and maybe even a new hobby.
3. Your own hearth is worth its weight in gold
While this German saying actually refers to the feeling of independence between generations, it can just as easily be taken literally. Spending on food and drink can be drastically reduced if you wield the wooden spoon yourself, and the best way to do that is to start from scratch. Eating out in restaurants is still the clearest example of how quickly money can be devoured within a few short moments of enjoyment. It does absolutely no harm to take a moment to note down the expenses here. You'll probably be quite surprised, but it's the little things here that add up to a lot of spending. The hype of coffee-to-go, which has been going on for a few years now, is not only damaging the environment, but also our budget. Based on a conservative estimate of three dollars per cup, this comes to at least 15 dollars per working week, which causes a minus of 780 dollars in our finances per calendar year. That could instead be a frugal week's vacation, for example. In general, trendy gastronomy, the fast pace of our times, and the desire for a snack in between meals cost us a lot. If you take your coffee from home in a to-go mug and make your lunch in a reusable lunch box instead, you can not only save a lot of money, but you also know exactly what's in that meal and drink. But saving money on food doesn't stop at home. It truly is best to make food from scratch – there are expenses lurking in the freezer department. A critical look at the prices of ready-made pizza over a period of at least one month, can be a real awakening in terms of savings potential. If you still have doubts, it's best to take a second critical look at the labels with the ingredients and nutritional information. So you might consider investing in a cooking course or doing some Internet research. Some influencers, such as the Englishman Miguel Markei, for example, offer entire blogs full of recipe ideas that cost only one English pound per person, which is just about $1.50 per person. An average visit to a restaurant, including a drink, by contrast, rarely costs less than $20. Gordon Sabatier has saved $13,000 per year in this way. To visualize this sum on a retirement account statement should be motivation enough to at least give the savings experiment a chance.
Today’s Conclusion: Learn from the best
Just as relationship tips are best taken from couples after their 50th anniversary and not from eternal bachelors, this also applies to money. These tips are easy to follow in theory, but in practice, of course, the average life often looks quite different. Factors like time pressure or family like to get in the way in the here and now when you should be thinking about your golden years. But the important lesson of Buffett and Sabatier is actually this: You don't need a small fortune to create a big one. Many small steps can lead to that same goal. Warren Buffett began his career as a schoolchild. He bought Coke six-packs for 25 cents in the supermarket and sold each can for 15 cents to his classmates. If you want to be a champion, you have to start early. That's it for today.