Warren Buffett says this is the ‘biggest mistake’ people make with their money (and psst: it has to do with savings)

Warren Buffett


johannes eisele/Agence France-Presse/Getty Images

Warren Buffett, the infamous 91 year-old Oracle of Omaha, is worth roughly $100 billion dollars — and could clearly spend frivolously. But Buffett is notorious for his spendthrift ways (remember, he eats frequently at McDonald’s) 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 more 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…

Read complete post here:
Source link