It has been a tough week this week.
To buy or not to buy! that is the question. I was searching for a good mountain bike or bmx this week. The convenient website for buying items is sulit.com.ph or ayosdito.ph if you want the value for your money.
By searching diligently, you will come across different stores and vendors. You can check the specs that you want, from color, size, shapes, etc. But the main factor is how much money are you willing to spend. How much budget you have in your pocket.
My first choice is a Mirraco BMX from Glorious Ride Bike Shop that is worth P7,500. This model is 3x cheaper than the MTB yet it has limited features.
My second choice is a Cannondale Trail 4 MTB from Ryan Bike Shop that is worth P26,500. It has lot of features and can go off road or road routes.
And the verdict is.. I will deferred my purchase until September 2014 because I have a more important financial commitment for this year.
And as Warren Buffet suggests Avoid expensive toys and luxuries and rather Pursue your passion relentlessly.
The question of reality bites, do I really needed a bike? The answer is No. :)
Till next week guys.
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Billionaire on a Budget: 7 Unbelievable Ways Warren Buffett Practices Frugality
When you first think about billionaire chairman and CEO of Berkshire Hathaway
Warren Buffett,
you probably can’t help but think about how much wealth, power and
business success he’s accumulated over the last half-century.
However, Buffett is most proud of
being frugal with his spending and
savings, prompting him to share
frugal living tips during interviews and public appearances on several occasions.
Living frugal might not be at the top of a to-do
list for many people, yet that’s exactly what Buffett practices on a
day-to-day basis. With a net worth of $46 billion, according to Business
Insider, it’s undeniable that Warren Buffett must be doing something
right when it comes to managing his personal finances.
7 Ways to be Frugal Like Warren Buffett
We’ve gathered the seven best
frugal habits Warren Buffett practices so that you too can live like a billionaire on a budget.
1. Buy a Modest and Affordable Home
Believe it or not, Warren Buffett has lived in the same five-bedroom
Omaha, Neb., home since 1958, when he bought it for just $31,500 — the
equivalent of roughly $255,000 in today’s money.
Although buying a lavish home in a wealthy neighborhood can be
tempting at times, buying a modest and comfortable home like Warren
Buffett will free up extra money you can use to build your savings and
retirement accounts.
Being frugal when it comes to owning a house will pay off in the long
run, especially when you avoid substantial mortgage payments that could
quickly escalate into mortgage debt if you’re unable to keep up.
2. Handle Investments Carefully
When it comes to making investments, Warren Buffett is often quoted
saying, “The first rule of investing is don’t lose money; the second
rule is don’t forget rule No. 1.” As far as investing goes, Buffett
discourages anyone going into debt unless they’re certain they’ll make a
profit later
However, Buffett also stresses that one of the best investments you
can make is in yourself, according to San Diego Union-Tribune.
“Anything that improves your own talents; nobody can tax it or take
it away from you,” Buffett said. “You can have all kinds of things
happen. But if you’ve got talent yourself, and you’ve maximized your
talent, you’ve got a tremendous asset that can return ten-fold. ”
3. Avoid Expensive Toys and Luxuries
This might seem like one of the more obvious frugal habits, but if
you have billions like Warren Buffett, sometimes it can be a hard one to
employ. According to Business Insider’s “15 Frugal Billionaires Who
Live Like Regular People,” Buffett doesn’t own a yacht or other
stereotypical luxury items because, as he said, “Most toys are just a
pain in the neck.”
Take a hint from Warren Buffett and avoid splurging on a new sports
car or expensive wardrobe. Instead, take your extra cash and place it in
a certificate of deposit with great interest rates. You can sit back,
relax and watch your money grow.
4. Pursue Your Passions Relentlessly
While this may seem like a luxury to some people, Buffett does not
consider it one. Buffett has said countless times that he loves what he
does for work, meaning he doesn’t have to spend much money on travel or
leisure.
Although you might not be as in love with your job as Buffett, you
can find an inexpensive hobby that you do enjoy. You can even possibly
earn a side income while being frugal, rather than spending hundreds of
dollars on spas, relaxing therapies or exotic
vacations to de-stress.
5. Never Pay Retail Price
For all you bargain hunters out there, you’ll be happy to know that
Warren Buffett also shares your love for a good sale. By practicing
patience and waiting for sales on the market, Buffett often finds a
great company he can purchase on clearance.
Don’t be hesitant to take the extra time to find sales, clip coupons
or wait for deals on big purchases like cars, houses or vacation
getaways.
6. Give Back to Others
Philanthropy is an art Buffett has no doubt mastered thanks to his
significant net worth, and many people wouldn’t consider it an act of
frugality.
That said, donating old clothes to
Goodwill or canned goods to food drives can be a great way to give back to others — while clearing your home of unnecessary items.
7. Weigh the Pros and Cons
Sometimes we forget to think things through and review the pros and
cons before making personal financial decisions. This can often lead to
hasty spending and money trouble. Buffett often credits his commitment
to thinking decisions through thoroughly to his financial success.
“You ought to be able to explain why you’re taking the job you’re
taking, why you’re making the investment you’re making, or whatever it
may be, ” Buffett told the U-T. “And if you can’t write an intelligent
answer to those questions, don’t do it.”
http://www.gobankingrates.com/savings-account/7-ways-warren-buffett-lives-frugally/
