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I’ve been inspired by Warren Buffett’s quotes lately, so I thought I’d write a post about him. I’ve read a lot about him in the past to help me with my personal finance and investing journey.
On top of that, I also handpicked and shared these 20 passive income quotes by Warren Buffett and Robert Kiyosaki, because their sayings inspired me to wake up and smell the coffee.
Like me, are you always feeling broke with no money, no matter where you are in life?
Do you feel like a failure when it comes to managing your money or achieving your desired life goals?
Well, I hope you don’t because I’m here to tell you that you can achieve whatever you want. You just gotta believe in yourself.
Related content:
- 13 Epic Passive Income Ideas That Make Real Money
- 10 Things I Did To Get Out of Debt and Build Wealth
- This One Amazing Quote From Warren Buffett Will Inspire You To Become Rich
The Warren Buffett Quotes That Inspired Me To Save and Invest
Many years ago, my boyfriend (now husband) and I were struggling financially.
We were determined to break free from the vicious cycle of living paycheck to paycheck while paying off our student loans. Not only were we navigating these financial challenges, but we were also trying to support our parents, who didn’t earn much. It’s daunting when the entire family relies on minimum wage incomes and is trapped in a relentless cycle of facing fee after fee, especially those levied on the less affluent.
With that in mind, my husband and I became serious about our finances. We started saving, being more resourceful, and, most importantly, investing. This approach not only helped us pay off our student loans but also enabled us to build wealth over the years.
I recall our days as students, trying to make money on Swagbucks by taking surveys. This effort helped us secure free gift cards. We sought out opportunities for free money and also looked for ways to score free stuff online. Every little goes a long way when you’re poor.
Additionally, we pursued various side hustles to earn extra money. This not only assisted our low-income families but also allowed us to indulge a bit more. However, the most significant gains came from concentrating on the following:
- Seeking ways to boost our salaries and negotiating our pay.
- Saving as much as possible from both our regular paychecks and side earnings.
- Keeping tabs on our budget worksheet and printables.
- Living below our means and investing the majority of what remained.
- Taking a little bit of risk (but not too much) even if it meant losing some of our money along the way.
Having reached a combined net worth of our first $2,000,000 in our 30s, we recognize that we are just regular people, and we’re NOT rich at all. Nevertheless, I’ve written a separate article on how to become a millionaire in your 30s, even if you’re starting from scratch as a low-income individual. This is aimed at helping the vast majority of people who are either burdened with debt or living paycheck to paycheck, struggling to get their finances in order.
Throughout our financial journey, my husband and I were always inspired by Warren Buffett and his financial wisdom. We can say with 110% confidence that his wisdom has made a positive impact on our lives today. If you follow his advice and start putting them into action, you will find your way out of a financial rut. Believe me, I have extremely high confidence in you!
So, over the weekend, I re-watched his documentary, Becoming Warren Buffett, by HBO to continue motivating myself for this year. The documentary talks about his general life, how he became successful, and other things that don’t involve money.
But in today’s post, we are going to focus on some wealth and money tips from this humble billionaire.
PIN (OR BOOKMARK) THIS PAGE: I’ll be updating this post so make sure to pin this image and save it to your Pinterest board. That way you’ll be able to come back to this page and check out all of Warren Buffet’s quotes about money and investing!
Money Quotes From Warren Buffet (Life Changing Quotes)
These tips (or quotes) from Warren Buffett will improve your financial health and life. Some are from HBO’s documentary and some are from the Internet. I thought it would be nice to put together some inspirational tips that will help you jump-start your financial goals.
As you read on, always remember that passion, patience, and perseverance are keys to your success!
Anyway, enough with my rambling. Let’s take a look at these five money tips from the multi-billionaire, Warren Buffett, shall we?
1) “Someone’s sitting in the shade today because someone planted a tree a long time ago”
Photo by Todd Quackenbush on Unsplash
We all know that success doesn’t come with the wave of a magic wand. It takes OH-SO-MANY years of learning (investing in yourself and learning from others), experiences, failures(yes, a lot of failures), and building a network, to see results. It takes time tobuild the foundationfor success and this simply doesn’t happenovernight.
The same concept applies to building wealth. That person sitting in the shade today started his learning journey a long time ago. Not only did he start saving money and investing for his future, he also educated himself on topics that would improve his situation. He also surrounded himself with others better than him, so he could learn from them. Of course, his journey had twists and turns. But overall, to be where he’s at today (i.e. financial independence), he planted his seed a long time ago.
If you haven’t started, don’t fret! There’s always time regardless of how old you are. The most important part is getting started. So, start now by following these best ways to save money. They can help you build a foundation for the next step, which is investing.
“It takes 20 years to make an overnight success.” – Eddie Cantor
2) “If you don’t find a way to make money while you sleep, you will work until you die.”
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This “make money while you sleep quote” is one of my favorite quotes by him that got me thinking about what I want out of life. Read here for more inspiration and meaning behind this quote.
To keep it short, it basically means you’ll never be financially independent to pursue your passions if you need to work for money. And don’t even think of relying on a company pension and/or government aid. The only person you can rely on is yourself.
Most of the time, we work and do things we don’t like for the sake of making money.
Don’t you want to stop working for money, and do things that bring passion, meaning, and fulfillment to your life? I know, it’s easier said than done. But you need to change your mindset about money and plant your tree today with the best passive income ideas.
“You reach the point where you don’t work for money.” – Walt Disney
3) “If you buy things you don’t need, soon you will have to sell things you need.”
How many of you folks are caught buying and accumulating a lot of stuff that you don’t need?
That was once me when I was spending money on unnecessary things, but eventually, these were the list of silly things I stopped buying to save money.
“Buy one get one free!”– free?? who doesn’t likefree?(although that’s really just 50% off each item, so no… nothin’ was for free, guys!)
“Original price for this Michael Kors handbag is $500. Save 60% off!”– Sweet, it’s only $200 now(before taxes)!!! It may be a great deal, but the problem is you don’t even use it.
It’s no wonder why many people get themselves into consumer debt. If this spirals out of control, and you lose your job, you may end up scrambling for money at the last minute. As a result, you may be forced to sell your car(s), investments, and/or even your home!
If you’re forced to sell your investments, you’re essentially forced to sell your future or financial freedom. In other words, your excessive spending and credit card debt is not only robbing your money today, it’s also robbing your future away.
Scary, huh?
So, it’s important to ask yourself whether you really need that item before tapping your credit card or hitting that “checkout” button online.
To help you stay focused, I created this freebie inspirational print out so that you can frame it and hang it on your wall. It also makes a pretty home decor item without spending a load at HomeSense! 😉
Related: Lessons I Learned From a No Spend Challenge
4) “I always knew I was going to be rich. I don’t think I ever doubted it for a minute.”
This is what Warren Buffett always told himself and y’all may think it’s crazy. But guess what? It’s usually the crazy people with rich mindsets that get what they want!
These “crazy” people truly believe in their dreams and aspirations. They take risks and challenge themselves every single day. They believe the impossible is possible. Simply put, they do things that are the opposite of everyone else.
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In their minds, they are more than capable and they ignore what others think of them. Even after many (and I mean MANY) failures and becoming the BIGGEST laughingstock, they remain strong and keep persisting until they get it.
Believe it or not, your mindand how you think are critical to your success!
“Your only limit is you.” – Anonymous
Do you want to dive into the minds of rich people?
Here are two fantastic books I highly recommend if you want to increase your chances of becoming rich:
- How Rich People Think
by Steve Siebold. - Rich Dad Poor Dad: What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not!by Robert Kiyosaki.
I’ve read both books and they’ve completely changed my mindset about money. To be honest, I regret not reading them sooner. And when I say “changed my mindset about money,” it goes beyond the simple personal finance advice of living below your means. That is, you will need to start thinking outside the box to learnhow to make money work for you instead of you working hard for money. As Robert Kiyosaki would say along the lines: “Think of each $1 that you invest in your asset column as an employee gained. They now work for you 24 hours a day, seven days a week. Keep building your employees.”I wrote an honest review of Rich Dad Poor Dad, so learn more about the book here.
Click the books to shop. Start changing your mindset about money so that you can reach financial freedom sooner:
Related content: 10 Ways to Develop a Rich Mindset — #10 is seriously Mind-Blowing!
5) “When bills come due, only cash is legal tender. Don’t leave home without it.”
Generally speaking, cash is an undervalued asset.
And no, I’m not here to tell you that cash should be held in a savings account that earns you close to nothing. I’m actually quite the opposite.
For the past several years, I had an addiction of investing everything into the markets because I wanted my money to start working for me as soon as possible. Although it’s great to invest, we should still hold a sizable amount of cash.
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You never know when it will come in handy, or when you’ll need it.
Warren Buffett says:
“Cash, though, is to a business as oxygen is to an individual: never thought about when it is present, the only thing in mind when it is absent.”
In his letter from Berkshire Hathaway, it says:
American business provided a case study of that in 2008. In September of that year, many long-prosperous companies suddenly wondered whether their checks would bounce in the days ahead. Overnight, their financial oxygen disappeared.
At Berkshire, our “breathing” went uninterrupted. Indeed, in a three-week period spanning late September and early October, we supplied $15.6 billion of fresh money to American businesses.
We could do that because we always maintain at least $20 billion – and usually far more – in cash equivalents. And by that we mean U.S. Treasury bills, not other substitutes for cash that are claimed todeliver liquidity and actually do so, except when it is truly needed.
When bills come due, only cash is legal tender. Don’t leave home without it.
You can download here for the full letter from Berkshire Hathaway.
As you can see, it’s important to give yourself a cushion in case of an emergency. You don’t want to go into panic mode when you lose your job. And you certainly don’t want to be forced to sell your investments (at a loss) either. From an individual perspective, it means buildinga sizable emergency fund before something hits you. That’s why you plan ahead, right?
Don’t have one? Don’t you worry, my friend! Read here for 10 clever ways to build your emergency fund today.Seriously, you cannot afford to live without one! No pun intended here.
Once you build your fund, you’ll have enough oxygen to breathe when a crisis hits.
6) “Price is what you pay. Value is what you get.”
When you buy something, the “price” is the money you hand over. But “value” is what the thing is really worth to you. Just because something’s expensive doesn’t mean it’s valuable. So, always look for good value, not just a good price.
7) “Risk comes from not knowing what you are doing.”
Warren Buffett’s quote, “Risk comes from not knowing what you are doing,” means that the biggest danger in investments, and life in general, arises from ignorance.
If you walk into a situation without understanding it, you’re more likely to face problems. Knowledge and research reduce uncertainty. By being informed and understanding the nuances of an investment or any decision, you minimize the potential for unexpected negative outcomes. In essence, education and understanding are key to risk management.
8) “Never invest in a business you cannot understand.”
Warren Buffett’s advice, “Never invest in a business you cannot understand,” emphasizes the importance of clarity and knowledge in making investment decisions. Buffett believes that one should only invest in businesses where they can predict with reasonable certainty how it will perform in the future. If you don’t grasp a company’s operations, industry, or revenue model, you’re essentially gambling rather than making an informed decision. By understanding a business, you can better assess risks and potential returns, leading to wiser investments.
9) “The most important investment you can make is in yourself.”
This is one of my favorite quotes because it talks about the value of personal growth and self-improvement.
This quote by Warren Buffett emphasizes that while stocks and properties can offer financial returns, investing in one’s skills, knowledge, and well-being offers lifetime dividends. Such personal investments can lead to better decision-making, increased earning potential, and an enriched life.
By prioritizing self-development, we not only enhance our professional trajectories but also enrich our personal lives, ensuring long-term success and satisfaction.
10) “Rule No. 1 is never lose money. Rule No. 2 is never forget Rule No. 1.”
The meaning behind this quote is straightforward yet profound:
- Preservation of Capital: The primary objective for any investor should be to preserve their capital. It’s crucial not to lose money because once you have a loss, it takes a larger percentage gain to recoup that loss. For instance, if you lose 50% of your investment, you need a 100% return on the remaining capital just to break even.
- Consistency and Discipline: The second part of the quote emphasizes the importance of always remembering the first rule. It’s a reminder to consistently apply the principle of preserving capital and not to get swayed by emotions or market euphoria.
Warren Buffett’s investment philosophy places a strong emphasis on understanding the businesses you invest in, being patient, and avoiding unnecessary risks. This quote highlights the importance of risk management and capital preservation in investing.
Over to you
Which one of these Warren Buffet quotes is your favorite? Did you ever implement them and see a change in your life?
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