Follow Warren Buffett's Shopping Strategy To Avoid Wasting Money In The Long Run

In a world where overspending seems to be the norm, it's not always easy to break bad spending habits. But if you follow one expert's shopping strategy, you can avoid wasting money in the long run. You've probably heard of the savvy investor Warren Buffett, CEO of Berkshire Hathaway. What you may not know is that, despite being one of the wealthiest men in the world, Warren Buffett is actually quite a frugal person who makes big money moves that you can try yourself. In a 2008 letter to Berkshire Hathaway shareholders, Buffet stated, "Whether we're talking about socks or stocks, I like buying quality merchandise when it is marked down." He also related advice from Ben Graham, whom he quoted as saying, "Price is what you pay, value is what you get."

So, how can these statements help you avoid wasting money? Think about it like this: Imagine you bought a cheap frying pan for $20. That pan will serve you a few times, but most likely, you'll end up replacing it before too long. But if you choose to spend $100 on a higher-quality frying pan, you might have that piece of cooking equipment for many, many years. In the long run, you'll save money buying quality items that offer value by not having to replace them as often. Buffett stresses getting a good deal, meaning you should wait until items you need, not want, are on sale, instead of rushing out to buy them immediately.

Impulse buying is one of the best ways to waste money. Warren Buffett doesn't buy new cars, and he lives in the same house he bought in the '50s. This is because he understands the difference between needing something and wanting something. His Omaha, Nebraska, home still serves him well, so why would he buy another house? New vehicles depreciate rapidly, losing as much as 20% of their value within the first year of ownership. So, buying a new car just for the heck of it can be a pretty unsound investment.

This doesn't mean you should never buy the things you want. If you're shopping wisely, you can occasionally afford to spend money on things that bring you joy. But it's important to recognize the difference between buying the things you need, like food and shelter, and buying the things you want. So, consider holding off on picking up the newest iPhone if your current phone still works alright, and maybe resist the new pair of shoes you'll hardly wear.

When the day comes that you do need a new phone or shoes, look for the best value. Consider buying a phone that's been around for a few years instead of splurging on the newest option. Look for new shoes from a quality brand when they're on sale or discounted. Buffett didn't get wealthy by wasting money, so use his money tips and tricks to start growing your own wealth.