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Warren Buffett is widely considered one of the most successful investors of all time.

From 1964 to 2021, his company Berkshire Hathaway delivered compounded annual gains of 20.1% — substantially outperforming the S&P 500’s compounded annual return of 10.5% during the same period.

Buffett’s legendary investment career has also made him one of the richest people on Earth, with a net worth of over $114 billion, according to Forbes.

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Despite his massive wealth, Buffett doesn’t live a lavish lifestyle. In fact, he still owns the same house in Omaha that he bought back in 1958 for $31,500.

Here’s a look at three valuable lessons from Buffett’s famously frugal approach to money.

Buy quality and value

Buffett’s frugality is particularly evident in his investing style.

“Whether we’re talking about socks or stocks, I like buying quality merchandise when it is marked down,” he wrote in his 2008 Berkshire Hathaway shareholder letter.

In particular, Buffett is a proponent of value investing, which is a strategy that involves buying stocks that are trading below their intrinsic value.

Interactive Brokers* offers low commissions and margin rates, along with tools to find stocks that have that intrinsic value. You can get started* in just a few minutes and with access to a range of tradable securities and global markets across 150 exchanges, users can easily diversify their portfolios with confidence.

Get in the habit of saving

It’s not easy to save money in today’s economic climate. Stubborn inflation continues to deplete savings and living paycheck to paycheck has become the norm for many.

During an episode of the Dan Patrick Show, Buffett was asked what he thought was the biggest mistake people make when it comes to money.

“Not learning the habits of saving properly early,” he replied. “Because saving is a habit … it’s pretty easy to get well-to-do slowly. But it’s not easy to get rich quick.”

If you’re looking to save up and make the most of your money, you can do that through Acorns* — an automated savings and investment app that puts your spare change to work.

When you make a purchase on your credit or debit card, Acorns rounds it up to the nearest dollar and invests the rest in a diversified portfolio of ETFs. Plus, when you sign up*, you can get a $20 bonus to help get you started.

Read more: Thanks to Jeff Bezos, you can now use $100 to cash in on prime real estate — without the headache of being a landlord. Here’s how

Forget that Lambo

If money is no object, what type of vehicle would you drive? A Mercedes, Bentley, or perhaps the prancing horse from Maranello?

Those might be what we think of as “rich people cars,” but you won’t find them in Buffett’s garage.

“You’ve got to understand, he keeps cars until I tell him, ‘This is getting embarrassing- time for a new car,” his daughter once said in a documentary.

Luxury cars often cost more to maintain and insure than economy cars. Instead of carrying a high car payment and insurance premium every month for that flashy sports car, look for value and longevity in your next vehicle and make sure you’re not overpaying on your car insurance.

BestMoney.com* is an online platform that helps you find auto insurance coverage that works for you — and your wallet. They can help you find the most cost-effective coverage so you’re not paying more than you have to. Simply fill in a few details* about yourself and your vehicle, and BestMoney.com will present you with a curated list of policy options in your area.

A better way to find value?

Buying value stocks isn’t the only prudent way to invest. In an uncertain economy, veteran investors are still finding ways to effectively invest their money outside of the stock market.

Prime commercial real estate, for example, has outperformed the S&P 500 over a 25-year period. With the help of First National Realty Partners*, these kinds of opportunities are now available to retail investors,not just the ultra-rich.

With FNRP, investors can own institutional-quality properties* leased by brands like CVS, Kroger and Walmart and collect stable grocery-anchored income on a quarterly basis. FNRP’s team of experts manages every aspect of the investment process, making the allocation easy to keep track of.

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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.