Warren Buffett's Best Money Advice

Warren Buffett is a hugely successful investor, and his financial tips are surprisingly accessible. Most of his methods are simple, straightforward and timeless. Here’s some of Buffett’s best money advice.

Borrow Wisely

Buffett warns against excessive borrowing. Credit card debt or unnecessary loans can quickly get you into lots of financial trouble: “I’ve seen more people fail because of liquor and leverage—leverage being borrowed money. You really don’t need leverage in this world much. If you’re smart, you’re going to make a lot of money without borrowing.”

Pay Yourself First

If you want to make saving a priority, take a look at how you budget.

“Don’t save what is left after spending; spend what is left after saving.”

Paying yourself first is basically an automatic way to prioritize your savings. To do this, you can set up automatic monthly deposits into your savings account. Thinking of your savings and investments as a monthly bill may help.

Break the Paycheck-to-Paycheck Cycle

It’s easier said than done, but Buffett illustrates just how important it is to break the paycheck-to-paycheck cycle: “Should you find yourself in a chronically leaking boat, energy devoted to changing vessels is likely to be more productive than energy devoted to patching leaks.”

Invest Long Term

Buffett always promotes big picture. He warns to not get caught up in daily valuations. Instead, think long term.

“If you aren’t willing to own a stock for ten years, don’t even think about owning it for ten minutes. Put together a portfolio of companies whose aggregate earnings march upward over the years, and so also will the portfolio’s market value.”

These are just a few tips that will help you become more financially sound. Be sure to like us on Facebook and follow us on Twitter for more money advice, and don’t forget to check back in on our blog for more great tips for maintaining your wealth.