Warren Buffett's Smart Money Tips Anyone Can Use

Famed investor Warren Buffett steps down as CEO of conglomerate Berkshire Hathaway at the end of 2025 — and at the age of 95. He will leave behind a company with a market capitalization of more than $1 trillion as well as an expansive collection of shrewd money insights he’s shared over the years.

While best known for the investing acumen that grew his own personal wealth to an estimated $150 billion, the so-called “Oracle of Omaha” also dispensed wisdom on a wide range of business, economic and financial topics during his tenure.

The good news is you don’t need to be an investor — or a billionaire — to learn from Buffett’s guidance. He’s dispensed plenty of valuable advice that’s useful for ordinary American families trying to save money, budget wisely and make smart financial decisions. Here are some of his most famous insights about savings, debt, homeownership and more.

Savings

Buffett frequently extolled the value of compound savings that allows your money to grow over time, as well as the importance of having cash on hand. Here are some of his insights on saving money:

• “Even a totally dormant savings account will produce steadily rising interest earnings each year because of compounding.” (Letter to Berkshire Hathaway shareholders, 1977)
• “We will always arrange our affairs so that any requirements for cash we may conceivably have will be dwarfed by our own liquidity.” (Letter to Berkshire Hathaway shareholders, 2009)
• “When bills come due, only cash is legal tender. Don’t leave home without it.” (Letter to Berkshire Hathaway shareholders, 2014)
• “Combining savings with compound interest works wonders.” (Letter to Berkshire Hathaway shareholders, 2019)
• “You should just spend a little bit less than you earn.” (Berkshire Hathaway annual meeting, 2023)

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Value

Buffett famously knew how to spot a good deal in business, and his insights apply just as well in the supermarket or big-box store:

• “In our view, it is madness to risk losing what you need in pursuing what you simply desire.” (Letter to Berkshire Hathaway shareholders, 2014)
• “Neither of us feels any urgency to buy an estimated $1 of value for a very real 95 cents.” (Letter to Berkshire Hathaway shareholders, 2019)

Debt

In both his business and personal finances, Buffett didn't encourage borrowing money. Here's what he's said about debt:

• “In general, we continue to have an aversion to debt, particularly the short-term kind.” (Letter to Berkshire Hathaway shareholders, 1992)
• “I think people should avoid using credit cards as a piggy bank to be raided… If I owed any money at 18 percent, the first thing I’d do with any money I had, would be to pay it off. It’s going to be way better than any investment idea I’ve got.” (Berkshire Hathaway annual meeting, 2020)
• “If you’re effectively paying 12% or 14% or whatever percent you’re paying on a credit card, you know, you’re saying, ‘I’m going to earn more than 12% or 14% on my money.’ And if you can do that, come to Berkshire Hathaway.” (Berkshire Hathaway annual meeting, 2023)

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Homeownership

Although he made a distinction between mortgages and other types of debt, Buffett had advice on purchasing a home — most Americans’ largest asset:

• “Home purchases should involve an honest-to-God down payment of at least 10% and monthly payments that can be comfortably handled by the borrower’s income.” (Letter to Berkshire Hathaway shareholders, 2008)
• “Last year I told you why our buyers — generally people with low incomes — performed so well as credit risks. Their attitude was all-important: They signed up to live in the home, not resell or refinance it. Consequently, our buyers usually took out loans with payments geared to their verified incomes (we weren’t making ‘liar’s loans’) and looked forward to the day they could burn their mortgage.” (Letter to Berkshire Hathaway shareholders, 2009)

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Moderation

But Buffett’s financial wisdom wasn’t all about being strict with your money:

• “I think there's a lot to be said for doing things that bring you and your family enjoyment rather than trying to save every dime.” (Berkshire Hathaway annual meeting, 2019)