You Need to Hear This Warren Buffett Quote About Saving Money
KEY POINTS
- Prioritize your savings first, don't just save whatever is left over.
- High-yield savings accounts earn around 10 times the national average rate.
- There is no better time than today to start taking your savings seriously.
Warren Buffett, famed investing genius and CEO of Berkshire Hathaway, has shared a lot of financial wisdom over the years, but one quote about saving money has stuck with me more than any other:
"Do not save what is left after spending, but spend what is left after saving."
It's simple, yet it completely changed how I think about money. If you've ever struggled to save or felt like your paycheck disappears too quickly, this mindset shift could be exactly what you need.
Why this quote hit me hard
I used to save whatever was "left over" after covering my bills, going out, and buying things I didn't really need. But most months, there was little or nothing to save. I kept telling myself I'd save more next month, but "next month" always looked the same.
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Buffett's quote made me realize I was doing it all backward. The key to saving is paying yourself first -- before bills, before fun, before anything else. It's a simple habit that can completely transform your finances.
Why a high-yield savings account is a game-changer
Buffett isn't just about saving -- he's about making your money work for you. That's why keeping savings in a high-yield savings account (HYSA) is a no-brainer. According to the FDIC, the average savings account rate is 0.41%, but HYSAs currently offer rates above 4.00% -- that's nearly 10 times the national average (or more).
Let me break down how big that difference can be:
- $10,000 in a regular savings account (0.41% APY) -- earns $41 per year.
- $10,000 in a HYSA (4.00% APY) -- earns $400 per year.
That's free money. And over time, those extra earnings really add up -- the beauty of compounding is that your interest earns interest.
Where to find the best high-yield savings accounts
Not all savings accounts are created equal. To get the best bang for your buck, look for:
- A high interest rate: Aim for around 4.00% APY or more
- No monthly fees: You don't want fees eating into your savings
- Easy access to your money: For emergencies or big goals
If you want to earn a competitive APY on your savings, the CIT Platinum Savings account is worth a look. It consistently offers one of the highest yields available at 4.10% APY for balances of $5,000 or more. Open a CIT Platinum Savings account here.
Prioritize your savings today
Warren Buffett's advice is simple: Make saving your priority, not an afterthought. When you save first, automate the process, and use a high-yield savings account, you set yourself up for financial success without even thinking about it.
I wish I had taken this advice sooner, but the good news is, it's never too late to start. Try it for just one month and see how much easier saving becomes -- you might be surprised at how fast your money starts to grow.
Our Research Expert
Jake is a full-time Editorial Strategist for Motley Fool Money. He specializes in product ratings and all things credit cards, and wants to make sure each person has the best card for them.
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Motley Fool Money is 100% owned and operated by The Motley Fool. Our knowledgeable team of personal finance editors and analysts are employed by The Motley Fool and held to the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands. Terms may apply to offers listed on this page. APYs are subject to change at any time without notice.