5 Life-Changing Lessons from Warren Buffett

Billionaire Warren Buffett, the chairman and CEO of Berkshire Hathaway, is the fourth richest person on the planet with a $121 billion fortune. Known for his financial acumen and profound insights into success, Buffett is a gem of wisdom. And you can use this wisdom to shape and change your life.

First, you must understand that Buffet’s was not an overnight success. It took him practicing small habits and setting boundaries for himself for years to achieve success.

Buffett has been a firm believer in the power of habits. He says,

I think that people underestimate — until they get older — they underestimate just how important habits are, how difficult they are to change when you’re 45 or 50, and how important it is that you form the right ones when you’re young.

Now, you might wonder what those extraordinary habits behind the success of the mega-mogul were. Well, these are some small, frugal, ordinary habits that provided astronomical results later in Buffet’s life.

Here is a quick list of Warren Buffet’s habits for success in life:

• Choose the career you love.
• Develop a lust for reading.
• Don’t make an investment with borrowed money.
• Cars are just a mode of transportation. So, don’t waste your money on flashy, luxurious cars.
• Don’t trap yourself in unnecessary loans and debts.
• Quality is more important than brand name.
• Avoid unnecessary expenses no matter how much you have.
• Eat good food.
• Buffett still uses coupons.
• Use cash for purchases so you feel the weight of every penny spent.
• Shop during sales to save your hard-earned money.
• Invest in things with cash flow.

You see, all of these are simple habits. They just need patience and determination. So, begin your journey today and start noticing the difference.

Life Lessons from Warren Buffett

Now, let’s find out Warren Buffett’s life lessons, which are sure to have astronomical results later in life:

#1 Avoid Taking Unnecessaries Debt

Avoiding unnecessary debt is a prudent practice that can help you maintain your financial health and stability. Buffett is cautious about taking on debt, especially high-interest debt. He recommends avoiding loans and paying off credit card balances in full to prevent the accumulation of costly debt.

Buffett said in a 1991 speech at the University of Notre Dame:

“You really don’t need leverage in this world much. If you’re smart, you’re going to make a lot of money without borrowing.”

#2 Live below your means

This is a fundamental principle of personal finance that Warren Buffett has emphasized throughout his life. Despite being one of the wealthiest persons in the world, Warren Buffett is known for his modest and frugal lifestyle.

He still lives in the same house he bought in 1958 and drives a relatively inexpensive car. He doesn’t even spend lavishly on food and prefers to have an inexpensive breakfast at McDonald’s.

He knows that a small amount of money today if invested, will become a huge amount years from now.

Yes, that’s a bit extreme, but the point is clear: any unnecessary expenses today will cost you a lot in the long term.

#3 Invest in Yourself

“Anything you invest in yourself, you get back tenfold,” Buffett said. And unlike other assets and investments, “nobody can tax it away; they can’t steal it from you.”

Warren Buffett’s advice to “invest in yourself” underscores the importance of continuous learning, self-improvement, and personal development as essential components of achieving success in both personal and professional life, whether it’s through education, mentorship, reading, or character development.

He also emphasizes the importance of physical and mental health. He invests in his health by maintaining a relatively simple and healthy lifestyle, which includes regular exercise and a balanced diet.

#4 Develop Your Love For Reading

Buffett is a voracious reader and is known for spending a substantial amount of his day reading books, annual reports, newspapers, and other educational materials. One notable thing is that Buffer does not limit his reading to one specific area.

He sees reading as a way to accumulate knowledge over time. So, he often advises others to read and learn as much as possible, as knowledge is an invaluable asset.

#5 Do what you love.

This is another one of the most important Warren Buffett life lessons. Buffett often advises people to do things that they are passionate about. He believes that doing what you love not only leads to professional success but also contributes to your personal happiness.

Also, work with people you enjoy and respect. Surrounding yourself with like-minded, trustworthy individuals can make your work more enjoyable and fulfilling.

#6 Research Before You Invest

Buffett emphasizes the importance of thoroughly understanding the business you’re considering investing in. This includes understanding the company’s products or services, industry dynamics, competitive advantages, and long-term prospects.

He says to work with the people whom you trust and stick to the areas where you have expertise. Buffett famously said:

“Price is what you pay, and value is what you get.”

Did we miss anything important in this list of Warren Buffett life lessons? Do you want us to talk about another leader? Please let us know in the comment below.