Written by Sharvan Kumar

Warren Buffett: 7 Things Poor People Waste Money On

March 4, 2025

Buffett emphasizes that the most important investment you can make is in your own knowledge and skills. He recommends reading daily and growing smarter over time, similar to how compound interest works. 

Invest in Yourself

Buffett dislikes credit card debt and prefers paying with cash whenever possible. He uses his American Express card infrequently and advocates for being cautious with borrowing. 

Avoid Credit Card Debt

 Buffett advises investing in high-quality assets, whether it’s stocks or everyday purchases. He believes it’s better to buy something great at a fair price than to get something cheap but of lower quality. 

Quality Over Quantity

Buffett doesn’t indulge in the latest tech gadgets or luxury items. He recommends saving first and spending only what’s left afterward, not the other way around. 

Cut Unnecessary Spending

Cars are depreciating assets, and Buffett suggests purchasing used vehicles rather than new ones, especially since new cars lose a significant amount of their value within the first year. 

Buy Used Cars

Buffett is known for finding bargains and uses coupons even for meals with billionaires like Bill Gates. His philosophy is to always look for a good deal, even when making everyday purchases. 

Look for Deals

Buffett calls gambling a "tax on ignorance" and strongly advises against it, urging people to avoid wasting money in this way. He views it as a poor financial habit that leads to lost opportunities. 

Avoid Gambling

From East West Hunt

Up Next

Follow For More Stories