Warren Buffett
In an economic perspective, when an individual’s income raises, the cost of his lifestyle will also raise. Nevertheless, not for this billionaire.  He is arguably the world’s greatest stock investor but also probably the most frugal person you will ever meet.

His name is Warren Buffett. Started from his humble beginnings when he was young, as Schroeder notes, Buffett immediately set to work making money with the most traditional of hustles — dutifully delivering newspapers. Now, Buffett is the Chairman, CEO and, largest shareholder of Berkshire Hathaway. He is also consistently ranked among the world’s wealthiest people.

Here is the list of the 20 wealthiest Americans and Buffet ranks second next to Bill Gates.

However, you won’t believe how frugal Buffett is. He has lived in the same five-bedroom Omaha, Nebraska home since 1958. He bought it for just $31,500 — the equivalent of roughly $255,000 today. 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, or even invest.

Photo of Buffet’s house at Omaha, Nebraska

In his office, Buffett doesn’t keep a computer on his desk, and he chooses to use a flip phone rather than a smartphone. According to Business Insider‘s 15 Frugal Billionaires Who Live Like Regular People, Buffett doesn’t have a yacht or other common luxury things billionaires own.  He once said, “Most toys are just a pain in the neck.”

At his annual shareholder’s meeting in 2014, Buffett explained that his quality of life isn’t affected by the amount of money he has. “My life couldn’t be happier. In fact, it’d be worse if I had six or eight houses. So, I have everything I need to have, and I don’t need any more because it doesn’t make a difference after a point.”

Despite being a billionaire, Buffett is simply happy to have a big-screen television, a bucket of popcorn, and sit in his sweats watching football games. He lives the way he invests: simply and without much fuss. He eats burgers, fries, and cherry cokes. His doctor gave him a choice: eat better or exercise. He chose exercise.

Warren Buffett, chairman of Berkshire Hathaway Inc., eats an ice-cream bar at the Dairy Queen booth on the exhibition floor prior to the Berkshire Hathaway shareholders meeting in Omaha, Nebraska, U.S., on Saturday, May 3, 2014. Yesterday, Berkshire Hathaway Inc. said first-quarter profit fell 3.8 percent on reduced earnings from Chairman Warren Buffett’s derivatives wagers and underwriting at insurance businesses. Photographer: Daniel Acker/Bloomberg via Getty Images

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.

From his humble beginnings, Buffett’s success story shall remain an inspiration to all of us and a reminder that having the discipline in your expenses is always a good idea.

Follow Moneymax for finance tips.