Warren Buffett's New Year Financial Advice: 'Do Not Save What Is Left After Spending, But Spend What Is Left After Saving'

Core Insights - Warren Buffett emphasizes the importance of saving before spending, advocating for a modest lifestyle to achieve financial stability for the middle class [1][5] - His philosophy includes the principle of "paying yourself first," suggesting that individuals should prioritize savings and investments over expenditures [2][3] Financial Strategy - Buffett recommends consistently investing in a low-cost S&P 500 index fund, advising individuals to maintain this practice regardless of market conditions [3] - He highlights the necessity of reducing unnecessary expenses and living within a frugal budget to focus on what truly matters [3][4] Debt and Personal Investment - Buffett warns against consumer debt, promoting cash transactions to avoid financial instability [4] - He stresses the importance of investing in oneself, as skills and knowledge provide the highest returns in the long run [4][5] Contextual Relevance - Buffett's advice is particularly pertinent during times of financial instability, such as the ongoing pandemic, offering a roadmap for achieving financial security [5]