- MarketWatch Home
- Picks
- Money
MarketWatch Picks highlights items we think you’ll find useful; the MarketWatch News staff is not involved in creating this content. We might earn a commission from links in this content. Learn more
By
comments
The Oracle of Omaha on saving money.
Warren Buffett, the infamous Oracle of Omaha, is worth roughly $100 billion —and could clearly spend frivolously. But Buffett is notorious for his spendthrift ways (remember, he eats at McDonald’s frequently) and his emphasis on creating financial security. He’s also a big fan of learning to save money properly.
You might be thinking — why save now in times of high inflation? But pros say that even now, it’s key to have savings (thankfully savings accounts are paying some of the highest rates in about 15 years now; you can see some of the best-paying savings accounts here). The guidance is that you will need roughly 3-12 months of essential expenses somewhere safe like a high-yield savings account. Need a little inspiration to make that happen? Here are a few of Buffett’s most famous quotes about saving money.
“The biggest mistake is not learning the habit of saving properly.”
In a speech to college students, Buffett noted that the “biggest mistake” is “not learning the habit of saving properly.” He also noted that “most behavior is habitual” and that “they say that the chains of habit are too light to be felt until they are too heavy to be broken.”
One way to easily do this? Make it automatic. It’s advice you’ve probably heard a thousand times but that doesn’t make it any less effective. Set up automatic transfers directly from your paycheck soon after you get paid into your savings and retirement accounts at regular intervals. This way you’re never touching that money yourself; it’s just going right into savings. Then each year if you can, try to up your savings (many people use the start of the year to review their finances and do something like this).You can see some of the best-paying savings accounts here.
“Whether we’re talking about socks or stocks, I like buying quality merchandise when it is marked down.”
In his 2008 Berkshire Hathaway shareholder letter, Buffett said, “price is what you pay; value is what you get.” To avoid losing money as a result of paying a price that doesn’t match its value, Buffett suggests that you can save by buying discounted items. “Whether we’re talking about socks or stocks, I like buying quality merchandise when it is marked down,” said Buffett.
The good news for consumers is that with regards to both stocks and stocks there are deals right now, as the markets are down this year, and there is excess inventory now on plenty of items at spots like Walmart because inflation is spurring consumers to spend less.
“Do not save what is left after spending, but spend what is left after saving.”
Essentially, save first and foremost and once you’ve socked away as much as possible, then you can allow yourself to spend money. For his part, Buffett is all about spending in cash too. “I’ve got an American Express card, which I got in 1964,” he told Yahoo Finance. “But I pay cash 98% of the time.”
This story was originally published in 2022.
Read Next
Read Next
I’m 69, retired and my husband and I have about $675,000 invested. I’ve gotten returns of about 3.94% but my financial adviser is charging 1.5%. What’s my move?
Have an issue with your financial adviser or looking for a new one? Email picks@marketwatch.com.
More On MarketWatch
- ‘These so-called pros were jokers.’ I wanted a conservative portfolio, but my financial adviser picked individual stocks, and I lost $53,000. What’s my move now?
- Pros say interest rates will begin cooling soon — but these 2 savings accounts are still paying 6.17% (for now)
- This CD is now offering 6.5% — plus 9 more CDs with the best APYs for January 2024
- My wife and I are in our 60s. We’ll get $9,600 a month in income, so likely won’t have to tap the $1.55 million we’ve saved, which is all in equities. An adviser wants to charge $265 an hour to give us advice. What’s our move?
About the Author
Alisa Wolfson
Alisa Wolfson is a freelance writer for MarketWatch Picks.
Community Guidelines • FAQs
Partner Content
This content was created by a business partner of Dow Jones and researched and written independently of Marketwatch newsroom. Links in this article may result in us earning a commission. Learn More
- Cheap Renters Insurance Companies | January 2024
- Best Extended Car Warranty
- Best Car Insurance Companies
- Best LLC Services (2024 Reviews and Rankings)
- 8 Best Home Warranty Companies of January 2024
- The Best Pet Insurance Companies (January 2024)
- Best Auto Loan Rates
- The Best Solar Companies of January 2024
- Best Car Shipping Companies
- Best Personal Loan Rates of January 2024
- Best High-Yield Savings Accounts of January 2024
- Best Free Checking Accounts for January 2024