Warren Buffett Answers the Age-Old Question: Does Money Buy Happiness?
At 95 years old, Warren Buffett is known as one of the most successful investors in the world. Currently, his net worth is more than $140 billion. Even so, the nonagenarian has never been a big spender and lives well within his means.
Here's his take on whether or not money buys happiness.
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Does Money Equal Happiness?
According to Buffett, he has everything he wants in life. "It's a very simple thing; If there's anything money could buy that I wanted, I'd do it this afternoon," he said in an interview alongside the late Charlie Munger.
Buffett explained that, in his opinion, money can make a significant difference up to a certain point by providing necessities like good housing, healthcare and transportation. However, he added, "I do not think that standard of living equates with cost of living beyond a certain point. If anything, you start getting inverse correlation ... My life would not be happier ... it'd be worse if I'd had six or eight houses or a whole bunch of different things I could have."
So, no, Warren Buffett does not believe that spending his money is the key to happiness.
Buffett's Lifestyle Align With His Beliefs
Although some might expect him to live a lifestyle befitting of a billionaire, it's anything but. For one, Buffett lives in the same house that he purchased in Omaha in 1958 for $31,000. In 2009, Buffett told the BBC that he continues to live in the same house because he's happy there: "I'd move if I thought I'd be happier someplace else," he said. "I couldn't imagine having a better house."
As far as his car, Buffett said it would probably take him half a day to go through the process of buying a car and reading the owner's manual, and he's not willing to do that when it's not necessary. "If I could write a check in 30 seconds and be in the same position I'm in now with a newer car, I'd be glad to do it this afternoon," he explained. But, he said that he doesn't want to trade when it doesn't benefit him, and he's happy with the car he owns.
Buffett drives a 2014 Cadillac XTS that has hail damage. His daughter, Susie, said in a BBC interview that her father prefers buying vehicles with cosmetic damage because they're more affordable yet still functional.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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