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Known for his savvy investments and sharp wit, billionaire Warren Buffett is also celebrated as one of corporate America’s great philosophers.
In a 2016 interview on Bloomberg’s The David Rubenstein Show, the Berkshire Hathaway chairman, worth over $145 billion according to Forbes, shared his indifference toward spending his fortune.
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“Money in terms of making trips or owning more houses or having a boat or something — it has no utility to me whatsoever,” he said.
“Money has no utility to me. Time has utility to me.”
Here’s why the legendary investor has his eye on the clock and how this way of thinking can impact how you grow your money.
Time is more precious than money
At 95, it’s no surprise Warren Buffett values time. Also, his Berkshire Hathaway investment wasn’t an overnight success — it took decades for compound interest to pay off. In fact, 99% of his wealth came after age 50, and he became a billionaire at 56, proving that consistent, long-term investing is key.
“My life has been a product of compound interest,” Buffett told David Rubenstein in 2016.
For those seeking a secure way to grow their savings while keeping time on their side, a certificate of deposit (CD) could be a smart choice.
A CD is a low-risk savings option that can yield interest comparable to, or even higher than, the top savings accounts. The trade-off for this higher rate is that your money stays locked in the account for a set period.
With MyBankTracker, you can shop and compare top certificates of deposit rates from various banks nationwide.
Their extensive database shows the most competitive rates, with daily rate updates and personalized recommendations based on your risk preferences and time horizon so you can find the right CD to meet your retirement savings goals.
Remember: The downside to a CD is that if you withdraw the money before the end of your chosen term, you’ll face penalty fees.
If you would prefer to keep your cash accessible, investing wisely also means choosing financial tools that allow you to stay in control of your money.
With SoFi, you can get fee-free banking on your checking account. So, no fees, no monthly maintenance costs and no minimum balance requirements.
You can earn 4.50% APY on savings balances and 0.50% APY on checking balances with direct deposit or qualifying deposits too. When you set up a direct deposit, new account holders can even get a cash bonus up to $300.
Deposits are insured up to $250,000 through SoFi Bank, with additional coverage up to $2 million through the SoFi Insured Deposit Program.
Read more: Warren Buffett used 8 simple money rules to turn $9,800 into a stunning $150B — start using them today to get rich (and then stay rich)
Reclaiming your time
Reclaiming time can be one of the smartest uses of money. A Harris Poll for Fortune found 90% of Americans believe affordable child care would help parents work more and boost income.
Similarly, data from the U.S. Bureau of Labor Statistics shows that women spend an average of 2.7 hours a day on household chores such as cooking and lawn care, while men spend 2.1 hours. Sometimes, reclaiming time means delegating important tasks, like your wealth management, to trusted professionals.
Advisor.com connects you with participating unaffiliated third-party registered investment advisors (RIAs) through its matching tool or provides personalized investment advice via its in-house wealth management service, Advisor Wealth Management.
From their database of thousands, you can find a pre-screened financial advisor you can trust. You can then set up a free, no obligation consultation to see if they’re the right fit for you.
Technology can also save time. Tools like ChatGPT can assist children with learning, while robotic vacuums handle daily cleaning. According to Oxford University, nearly 40% of unpaid household tasks could be automated in the next decade.
By freeing up time, you can focus on work, increase earnings, or simply spend more moments with loved ones. Prioritizing time in your financial plan ensures you use this limited resource wisely.
Saving time and money can go hand in hand.
Acorns makes investing effortless by rounding up your everyday purchases and automatically investing the spare change. By simply downloading the Acorns app and linking your bank account, every debit or credit card transaction is rounded up to the nearest dollar, with the remainder invested in a diversified portfolio of ETFs built by experts.
It’s a simple way to grow your wealth while spending on what you enjoy.
You can also add a custom touch to your portfolio with Acorns Gold. The premium plan allows you to add individual stocks to your portfolio in addition to your expert-built smart investment portfolio.
Sign up now and get a $20 bonus investment to jump-start your savings. If you opt for the Acorns Gold plan, the first month is free.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.