Warren Buffett says this is the ‘biggest mistake’ people make with their money (and psst: it has to do with savings) (2024)

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.

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.

I’m 67 and get $2,100 a month in Social Security. I have been in a relationship for 33 years, but his son doesn’t like me and I have health issues. Now that we are considering marriage, who can help us figure this out?