Warren Buffett’s Money Advice for 2016

piggy bank wearing glasses and looking at calculator

Warren Buffett is a good person to listen to when it comes to advice about money, and not just because he has lots of it: he’s also good at managing other people’s money. He’d like to manage yours, too, with some of his best practices and tips and tricks for building wealth and investing wisely in 2016. Here’s what he has to say.

Don’t lose money.

“Rule number one: never lose money. Rule number two: never forget rule number one,” Buffett says. What that means is never to risk something you need to get something you want. If you can’t afford it, don’t buy it. Even if there’s a good chance that something will work out fine, that’s not a guarantee. Don’t buy what you don’t need.

Shop smart.

Buffett urges you to consider price versus value. “Price is what you pay, value is what you get,” he says. If you buy something that turns out to not be a very good product, you’re losing money. Or if you get a credit card with a very high interest rate that adds up, everything you have is more expensive than it’s worth. Buy good products when they’re on sale and keep an eye out for deals.

Hammer out better financial habits.

Habits can be hard to break, but it is possible to break them, even for the very entrenched. “The biggest mistake is not learning the habit of saving properly,” Buffett says, stressing the importance of saving and budgeting. He says to consider using automatic deductions from your paycheck or automatic transfers that draw money into a savings account to make sure you can stay on top of your finances.

Set long-term goals.

Most people think about money in the short-term: what can I buy now? What can I buy in a month? But Buffett urges people to think in longer spans of time. “Invest with a multi-decade horizon,” he says. Be focused on increasing purchasing power over your lifetime, not just into next month.

Check out the link above to see the rest of Warren’s advice!

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About DevonJ140
I am currently an Accounting Director living in New York City. I love reading and learning more about business, finance, tech, and current events.

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