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The Low Down on Warren Buffet Giving Away A Ton of His Money

By Erik Folgate

It put a smile on my face to see that Warren Buffet was going to be giving away a big chunk of his wealth.  He is giving away about $37 billion dollars, which is about 85% of his wealth.  Although, I know there are some cynics out there, and that is why I chose to write about this current event.  First let’s break down one of the largest philantropic events ever. 

30 billion of it is going to Bill Gates’ charity foundation.  I did not know they were such good friends!  The Gates foundation is a great charity, but it raises the question of whether this will give one man way too much charitable power.  And obviously, Buffet is going to be a chairperson on the foundation’s board, so he will obviously have an influence and control on where his money is going. 

The other 7 billion is going to children’s and grandchildren’s various charities of legitimate and worthy causes.  So, the rest of it pretty much stays in the family, but let’s hope that these charities are reputable enough to make sure these funds get used properly. 

These are probably the two main thoughts that are going through a cynical person’s head.  However, I would like to think that Warren Buffet is a model citizen and someone to look up to when it comes to American icons.  If there is anyone that you can learn from financially, it is him.  Even with tons of wealth, his philosophy and foundation, and roots about how to handle money are everything that I believe in.  And the fact that he is taking away some or most of the control of the empire he built, really makes me admire him more. Also, Buffett pays himself a salary of $100,000 from his investment company, and he still lives in the same house that he bought in 1958 in Omaha, Nebraska.  (yeah, I know he has a second home in Laguna Beach and he is worth billions despite his “salary”, but you get my point).  The man is unpretentious and very frugal.

This goes to show that the pursuit of earthly success and wealth is to set yourself up for the chance to change our world.  The Gates foundation now has the ability to change the world in a positive away.  The only concern is that the change truly is positive.  Wealth is intended to be shared, and that should be what motivates young people to be successful and gain extreme amounts of wealth.  The greatest joy we can experience is from giving, whether that is giving our time, money, or possessions. 

If you want to have a six figure income or strike it rich with an entrepreneurial venture solely because you like the idea of owning fancy yachts and big houses, then you are in it for the wrong reasons.  Regular people like Warren Buffet become extremely wealthy because their eyes are not on the flash and the glitter of wealth.  They are in it to change lives and change the world they live in.  That is what you can do with wealth, and that is why you should never feel guilty for being wealthy unless you hoard all of it.

Erik Folgate
Erik and his wife, Lindzee, live in Orlando, Florida with a baby boy on the way. Erik works as an account manager for a marketing company, and considers counseling friends, family and the readers of Money Crashers his personal ministry to others. Erik became passionate about personal finance and helping others make wise financial decisions after racking up over $20k in credit card and student loan debt within the first two years of college.

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  • Steve

    I wouldn’t feel guilty at all if I made a ton of money and hoarded it. Mr. Buffet and Mr. Gates are under no obligation to givew their wealth away to anyone.
    The fact that you think they should fell guilty means that you are envious of their success and ashamed of yours, thereby implying that they owe you and society something. FYI, they don’t. Other than that, a great article. Keep them coming.

  • Iaga

    warren was the ritchest person in the world in 2008 and the third ritchest in 2011, what a man

  • Xxx

    he is a pretty impressive guy and i wanna b best friends wiv him xoxoxoxoxoxxoxoxooxxxooooooooooooooooooooooooooooooooooooooooooxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

  • IGAL


  • ME

    I wouldn’t feel guilty at all if I made a ton of money and hoarded it. Mr. Buffet and Mr. Gates are under no obligation to givew their wealth away to anyone.
    The fact that you think they should fell guilty means that you are envious of their success and ashamed of yours, thereby implying that they owe you and society something. FYI, they don’t. Other than that, a great article. Keep them coming.

  • Amy

    How do you sign up for the online class?

  • roger

    look for a house loan been live at same house for 52 year wife got sick and have to move look for a small loan to get a new house

  • dtownprof

    The question is, if they give all this money away, how are they climbing the charts of the richest people in the world? Gates and Buffet are big on the “Giving Pledge” where billionaires commit to giving away half their wealth, but 10 of the people on the list have been increasing in wealth over the past 3 years, so those pieces don’t compute.

  • tom

    Money corrupts absolutely. Think of all the people these so called rich great men have destroyed to get to where they are today. What a load of bullshit. They are nothing but corporate raiders and tax evaders.

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