Wealth quote of the day: Do not save what is left after spending; instead ….. by Warren Buffett

A lot of people struggle to save money, even if they have a decent salary. Warren Buffet has pointed out how important it is to make saving a part of your life as a good habit for long-term success. The remark basically suggests that you should always set aside money from your earnings for savings.
Don’t just save what is left after you spend; spend what’s left after you save.

Even if your initial savings are as little as Rs 3,000 per month, it makes no difference. Developing a savings habit is crucial. The earlier you learn to save, the better it is for your future. However, don’t just save, investing what you save is also a habit that will ensure a bright future.

Let us explain this with an example
Let’s say Rahul earns a monthly salary of Rs 50,000.
His spending on rent, food, shopping, outings: ?48,000
Amount left for savings: Rs 2,000 (or sometimes nothing)
By the end of the month, unexpected expenses come up and Rahul often ends up saving nothing.

What Buffett suggests (the right approach)

Here Rahul will first sets aside money for saving: Rs 10,000
Remaining amount for expenses: Rs 40,000
Rahul adjusts his lifestyle within Rs 40,000 and ensures savings happen every month.
If you decide to invest or save a specific sum of money, let’s say you start with a Systematic Investment Plan (SIP) to invest in a mutual fund, recurring deposit or any monthly scheme. Consequently, you save first and then spend what’s left. This approach will help you manage your budget better and cut down on unnecessary expenses. You will automatically estimate your monthly earnings and expenses, which will help you limit your overspending since there won’t be much left to spend. Once you get the hang of this method, everything will start to click into place.Warren Buffett is one of the most successful investors of all time. Warren Edward Buffett is an American investor and philanthropist. He is the chairman and former CEO of Berkshire Hathaway. Buffett’s success has made him one of the world’s most well-known investors. According to Forbes, as of January 2026, Buffett’s estimated net worth was US$148.9 billion, making him the ninth-richest person in the world.

He then began several business ventures and investment partnerships, including one with Graham. He created Buffett Partnership Ltd. in 1956 and his investment firm eventually acquired textile manufacturer Berkshire Hathaway, applying its name to a diversified holding company. Buffett emerged as the company’s chairman and majority shareholder in 1970. In 1978, fellow investor and long-time business associate Charlie Munger joined Buffett as vice-chairman

Popular quotes of Warren Buffett

“Rule No. 1 is never lose money. Rule No. 2 is never forget Rule No. 1.”
. “Price is what you pay, value is what you get.”
“Risk comes from not knowing what you are doing.”
“Never invest in a business you cannot understand.”
“Be greedy when others are fearful, and fearful when others are greedy.”
“You’ve gotta keep control of your time, and you can’t unless you say no. You can’t let people set your agenda in life.”
“The most important investment you can make is in yourself.”
“If you aren’t thinking about owning a stock for ten years, don’t even think about owning it for ten minutes.”
“We don’t have to be smarter than the rest. We have to be more disciplined than the rest.”

Warren Buffett advises prioritizing savings by setting aside a portion of earnings before spending. This ‘save first, spend later’ approach, even with small amounts, builds a crucial habit for long-term financial success.