What Can We Learn From the Frugal Habits of Billionaires?
Frugality doesn’t always mean sacrificing and not enjoying life. Billionaires are some of the most successful people in the world, and their frugal habits have likely contributed to their success. By being conscious of their spending, they can invest more in their businesses and personal ventures. This mindset probably applies to most areas of their lives, including breakfast.
Warren Buffett famously ate breakfast at McDonald’s almost every morning of his working life. However, it’s not just any menu item that he orders. Buffett opts for a simple breakfast. On his five-minute drive to the office, which he’s been doing for the past 54 years, he stops by the fast-food chain and, depending on how prosperous he’s feeling, orders one of three items: two sausage patties for $2.61, a sausage, egg and cheese for $2.95 or a bacon, egg, and cheese for $3.17. He also orders a side of hash browns and a drink. The total cost of his breakfast is under $5, which is impressive considering his net worth is over $107 billion.[1]
Why McDonald’s?
Buffett’s breakfast choice may seem surprising at first, but there are a few reasons why he prefers McDonald’s. First, he enjoys the consistency of the food. Regardless of which McDonald’s he visits, he knows he will receive the same quality and taste every time. Second, he enjoys the social aspect of eating at McDonald’s. He often brings friends or colleagues to the restaurant for meetings and enjoys the casual atmosphere.
In Bill and Melinda Gates’ 2017 annual letter, which they addressed to longtime friend Buffett, Bill tells the story of a particularly economical lunch Buffett took him out for years ago.
“Remember the laugh we had when we traveled together to Hong Kong and decided to get lunch at McDonald’s? You offered to pay, dug into your pocket, and pulled out … coupons!” writes Bill.
Buffett established many simple and repeatable habits early in his life and maintained them throughout his working career.
Avoiding Decision Fatigue
Warren Buffett’s daily breakfast routine perfectly exemplifies how simplicity and consistency can benefit our lives. By opting for a simple breakfast option at McDonald’s, he saves money and avoids the stress of deciding what to eat every morning. This consistency also saves him time and eliminates decision fatigue, allowing him to focus on his work and other essential tasks.
Decision fatigue is the concept that the quality of the decisions made by an individual deteriorates after a prolonged period of decision-making. Mental exhaustion arises from making too many choices or decisions, particularly when those decisions are complex or require a lot of mental effort, or must be made every single day, over and over again.
When people are required to make decisions frequently or in rapid succession, their ability to make good decisions can be compromised. This is because decision-making requires mental energy, a finite resource that can deplete over time. As decision fatigue sets in, individuals may experience reduced impulse control, increased procrastination, and difficulty focusing on complex tasks. On a daily time frame, it can set in if you must decide what to wear each morning, what to eat for breakfast, and what route to take to work.
Decision fatigue can be particularly problematic in settings such as work or school, where individuals are required to make important or repetitive decisions on a daily basis. To mitigate decision fatigue, it is often recommended that individuals prioritize their most important decisions for earlier in the day when they are fresh and to limit the total number of decisions made throughout the day, if possible. Additionally, delegating some decisions or automating routine decisions can help conserve mental energy and reduce decision fatigue.
While Buffett’s breakfast choice may not be for everyone, we can learn valuable lessons from his frugal habits. We can save money without sacrificing the quality of our life by choosing a simple breakfast option. Additionally, selecting a consistent breakfast spot can save time and avoid decision fatigue in the morning. While many consider this breakfast choice unhealthy, Buffett prefers to optimize his life for enjoying the foods and drinks he loves, like McDonald’s, Cherry Coke, and going to steak houses by maintaining his set parameters for calorie intake. His life is still one of moderation, enabling him to live to 92 years old. Much like Mark Zuckerberg and the late Steve Jobs, he keeps his habits simple and repeatable. Putting his mental energy into his business and investing career.
How to Embrace Simplicity and Consistency
Here are 20 ways to embrace simplicity and consistency in your daily life:
- Plan your meals for the week in advance: This helps you save time and money by avoiding last-minute decisions and impulsive purchases.
- Create a morning routine and stick to it: It helps you start your day with clarity and focus.
- Simplify your wardrobe: Reduce decision fatigue by having a minimal wardrobe of high-quality pieces that are versatile and easy to mix and match.
- Prioritize sleep: Develop a consistent sleep schedule and create a relaxing bedtime routine to improve the quality of your sleep.
- Practice mindfulness: Incorporate mindfulness techniques into your daily routine, such as meditation or deep breathing exercises, to help you stay present and focused.
- Use a planner or calendar: Keep track of your schedule and commitments to avoid overbooking and reduce stress.
- Practice the “one in, one out” rule: For every new item you bring into your home, eliminate one thing you no longer need or use.
- Limit social media and screen time: Reduce distractions and improve productivity by setting boundaries around social media and screen time.
- Focus on one task at a time: Avoid multitasking and focus on one task at a time to improve efficiency and reduce stress.
- Embrace a minimalist lifestyle: Simplify your life by embracing minimalism and focusing on experiences and relationships rather than material possessions.
- Create and stick to a budget: Develop a consistent budget and track your spending to help you save money and reduce financial stress.
- Practice gratitude: Cultivate gratitude by focusing on the positive aspects of your life and expressing gratitude for the people and experiences that bring you joy.
- Make time for self-care: Prioritize self-care activities, such as exercise, reading, or a relaxing bath, to improve your physical and mental well-being.
- Use time-blocking: Schedule your day in blocks to help you stay focused and productive.
- Reduce decision fatigue: Simplify your life by reducing the number of decisions you make each day, such as choosing your outfit or what to eat for breakfast.
- Automate tasks: Use technology to automate repetitive tasks, such as paying bills or scheduling appointments, to save time and reduce stress.
- Practice self-reflection: Reflect on your actions and decisions to help you learn and grow.
- Learn to say no: Set boundaries and say no to commitments and activities that do not align with your values and priorities.
- Embrace simplicity in your relationships: Focus on building deep and meaningful relationships with a few close friends and family members rather than trying to maintain a large social circle.
- Embrace simple pleasures: Find joy in simple pleasures such as tea, a walk in nature, or a good book. This helps you appreciate the small things in life and find happiness in the present moment.
Conclusion
The frugal habits of billionaires, such as Warren Buffett, may seem unusual, but they can provide valuable insights into our financial journeys. Adopting some of these types of habits can help us save money, invest more in our personal and professional endeavors, and ultimately achieve our financial goals.
So next time you’re considering what to eat for breakfast, take a page from Warren Buffett’s book and feel the benefits of simplicity and consistency. Small changes can lead to significant results, whether adopting a minimalist lifestyle, creating a morning routine, or simplifying your wardrobe. These habits can improve our lives and help us achieve our financial goals.