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Warren Buffett may be best known for his investing success, but his diet has also made headlines for years. He’s known to, like many people, drink Coca-Cola, eat McDonald’s and enjoy ice cream.
Those inexpensive foods may not be what you’d expect from one of the richest people in the world. But the legendary investor is famously frugal, and his spending habits provide three lessons for people who are working toward long-term financial goals.
1. Buy based on value, not trends
Buffett’s diet includes cheap and simple staples — and the same goes for much of his investing strategy. He’s long been known to recommend low-cost index funds for most investors, and to warn investors against chasing exciting, speculative trends in the market.
You can apply this grocery (and investing) lesson to all spending categories. Instead of chasing flashy cars and expensive brands, sticking to simple, time-tested products pays off. But also, you shouldn’t buy cheap items that have no value. When shopping, consider which items will add value to your life and are durable, and go with those.
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2. Prioritize consistency over convenience
Buffett chooses what he likes and sticks with it. “If I eat 2,700 calories a day, a quarter of that is Coca-Cola. I do it every day,” the investor told Fortune in 2015.
While we’re certainly not advising you to do the same, his love for the soda does point to a lesson you can take for your finances: If you find a product or strategy that works for you, don’t constantly be tempted to change it up. It takes time and effort to make each decision. If you browse too many products, you might fill your shopping cart with unnecessary items. Knowing how you will spend your money and going into a grocery store with a shopping list can help keep your expenses under control.
3. Spend on what makes you happy
Buffett lives frugally. He still resides in the home in Omaha, Nebraska he bought in the 1950s, and has often advised people to live below their means. But he’ll still spend on what makes him happy, like junk food (he told CNBC he’d give up a year of his life to eat how he wants).
You can apply this lesson by listing what makes you happy and cutting items from your spending that don’t fit into that category. Frugality doesn’t come down to how much money you have. As Buffett illustrates, some of the wealthiest people are careful about how they spend, not buying expensive homes and cars just because they can.
A small move like cutting an unnecessary subscription if it doesn’t bring you happiness means you’ll have more money to put into your savings and investments.