Warren Buffett's 9 Frugal Habits: How a Billionaire Saves with Coupons

Lisa Bakker · 2026-04-20

Warren Buffett is one of the richest people on the planet, but you would never guess it from his spending habits. The man famously still lives in the same house he bought in 1958 for $31,500, drives a modest car, and yes—he uses McDonald's coupons. It is not about being cheap. It is about being intentional with every dollar. Most people think wealth comes from a high salary. But real financial freedom is built on habits, not income. Here are nine of Buffett's frugal habits that can help anyone save more, spend smarter, and build lasting wealth. ### 1. He Still Uses Coupons Buffett is known for picking up a McDonald's breakfast on his way to work. But he does not just pay full price. He uses coupons and often chooses the $2.89 breakfast sandwich over the $3.19 one. It is a difference of thirty cents, but to him, every penny counts. This habit is about mindset. When you treat small savings as meaningful, you naturally become more mindful about larger purchases too.  ### 2. He Lives in the Same House In 1958, Buffett bought a five-bedroom house in Omaha, Nebraska, for $31,500. Adjusted for inflation, that is around $340,000 today. He still lives there. No mansion. No gated estate. Just a comfortable home that meets his needs. - He avoids lifestyle inflation - He prioritizes function over status - He proves that happiness does not require a bigger house ### 3. He Drives Practical Cars Buffett drives a Cadillac DTS that he bought several years ago. Before that, he drove a Lincoln Town Car with over 100,000 miles on it. He does not care about luxury brands or flashy vehicles. He cares about reliability and value. ### 4. He Keeps a Simple Office His office in Omaha is famously modest. No fancy artwork or expensive furniture. Just a desk, a phone, and a lot of annual reports. He spends his days reading and thinking, not decorating. > "The business schools reward difficult complex behavior more than simple behavior, but simple behavior is more effective." - Warren Buffett ### 5. He Eats at Affordable Restaurants Buffett loves Dairy Queen, McDonald's, and a good steakhouse. But he never orders the most expensive item on the menu. He knows what he likes and sticks to it. This saves money and eliminates decision fatigue. ### 6. He Avoids Debt Buffett has said that the best way to build wealth is to avoid credit card debt. He pays off his balances in full every month. Interest payments are a wealth killer. If you cannot afford it with cash, you probably cannot afford it at all. ### 7. He Buys in Bulk Buffett is a fan of buying everyday items in bulk. Toilet paper, cereal, and even soda. He knows that buying larger quantities saves money over time. Just make sure you have room to store it and will actually use it before it expires. ### 8. He Values Experiences Over Things Buffett spends money on what matters most to him: time with family, bridge games, and reading. He does not waste money on things that do not bring real joy. This is a lesson in intentional spending. ### 9. He Teaches His Kids the Same Values Buffett's children did not inherit a fortune. He plans to give away 99% of his wealth to charity. He believes that leaving too much money to kids can ruin their drive. Instead, he teaches them the same frugal habits he practices. These nine habits are not about deprivation. They are about making conscious choices that align with your values. Whether you earn $40,000 or $4 million a year, the principles are the same. Spend less than you earn. Invest the difference. And never underestimate the power of a coupon.