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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.
“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 94, 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.
There are various terms and rates available and SavingsAccounts.com can help you shop and compare top rates from banks and credit unions nationwide.
Their extensive database shows the most competitive rates without bias and daily rate updates can help you find the right CD to meet your 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.
For example, Public makes self-directed investing accessible and transparent, allowing users to trade stocks, ETFs, crypto, and alternative assets — all commission-free.
Unlike robo-advisors, Public provides control without automated management,and promotes transparency by rejecting payment for order flow in favor of an optional tipping model.
There’s the added bonus of Public’s high-yield cash account with an industry-leading 4.6% APY and there are no fees and no minimum balance required. This can allow you to grow your uninvested cash more effectively over time.
Public makes it easy to do all of your account management in one place with their accessible investing features and high-yield cash account.
If you want to add a high-yield savings account to your money strategy, check out the Moneywise list of the Best High Yield Savings Accounts of 2024 to compare the top options and find an account that fits your needs.
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.
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
