Warren Buffett advice on spending money

His advice to young people: Stay away from credit cards and invest in yourself.

“I just naturally want to do things that make sense. In my personal life too, I don’t care what other rich people are doing. I don’t want a 405 foot boat just because someone else has a 400 foot boat.”

The sad truth is that our ever-sophisticated advertising industry has conditioned our mind to find happiness from consumption by spending our hard earned money on the possessions that never bring us lasting happiness. We spend our life-energy on those possessions that we seldom use. We worry about making payments for a luxury car that sits in our garage collecting dust only for the right to brag about it in an occasional social gathering. Keeping up with the Joneses is the worst epidemic among those who should never contemplate that notion in the first place. If a man who can possibly buy a nation with his cash never espouses the mantra of “more the better”, I need to learn not to spread my legs beyond the reach of the blanket. We are conditioned to spend money before we earn it. We are sold on the fake happiness of “Buy now, pay later dearly” – It’s nothing more than buying possessions that we cannot afford. Paying for purchases with cash creates awareness towards the impulse buy. I have also started red lining items on the credit card statement that I consider useless spending. All of these efforts have built my awareness towards my impulse purchases. I have been using mantra of – “less is more” to simplify every aspect of my life. It’s a work in progress but the results are astounding.

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