I’ve always admired Warren Buffett—not just for his investing genius, but for the simplicity and clarity of his financial advice. Yet, somehow, I spent years cheerfully ignoring his principles. My logic? “Surely life’s too unpredictable to stick to such strict rules, right?” Now, firmly in my mid-30s and feeling the pinch of past choices, I’m realizing the profound cost of dismissing Buffett’s wisdom.
It turns out Buffett’s money rules aren’t just for aspiring billionaires. They’re simple, practical, and shockingly easy to overlook—exactly what I did, to my detriment.
So, what exactly were those rules, and why did ignoring them come back to haunt me?
1. Never lose money
Sounds obvious, doesn’t it? Buffett famously insists, “Rule number one: never lose money. Rule number two: never forget rule number one.” At first, this seemed absurdly simplistic to me. Life involves risks, doesn’t it? Surely losing a bit here and there was inevitable?
But I misunderstood Buffett’s intent. He wasn’t talking about avoiding minor losses or natural market fluctuations. Instead, he warned against unnecessary risks and speculative gambles.
Unfortunately, I learned this lesson the hard way. In my late twenties, eager and perhaps overly confident, I jumped into trendy stocks without understanding them properly. I lost thousands chasing quick gains in cryptocurrencies and flashy startups, blinded by hype and fear of missing out (FOMO).
Buffett urges caution and knowledge, emphasizing investing only in what you deeply understand. Had I adhered to his advice, I’d now have fewer regrets and a healthier savings account.
2. Invest in yourself
Buffett frequently underscores the importance of self-investment, famously advising, “The best investment you can make is in yourself.” Initially, I brushed this off as just another cliché. After all, wasn’t pursuing a career enough self-investment?
Yet, my version of “self-investment” barely scratched the surface. Buffett was talking about constant personal and professional growth—acquiring new skills, expanding your knowledge, and continuously improving.
Reflecting now, I see how stagnant I let myself become. For years, I coasted professionally, comfortable enough but rarely challenged. I delayed courses, certifications, and further training, rationalizing that I was already “doing fine.”
But “fine” has a shelf-life. As industry trends shifted and younger, more skilled professionals surged forward, I was left scrambling to catch up. Now, playing catch-up feels exhausting and costly. Had I taken Buffett’s advice seriously earlier, I’d be thriving rather than scrambling.
3. Avoid debt like the plague
“If you’re smart, you’re going to make a lot of money without borrowing,” Buffett once declared. I heard this, yet somehow convinced myself it didn’t apply to my circumstances. After all, didn’t everyone use debt—credit cards, car loans, mortgages—to get by?
Debt, I reasoned, was simply a part of modern life. But Buffett wasn’t advocating against all debt—rather, he warned against unnecessary, high-interest debt, the type used for instant gratification rather than building wealth.
I ignored this rule repeatedly. Fancy holidays on credit cards, a slightly too-expensive car, and frequent dining out felt harmless at first. Slowly, that “harmless” debt snowballed, turning into financial stress that lingered for years. According to the Bank of England, UK households collectively owed £65.1 billion on credit cards in 2023, suggesting my experience isn’t uncommon. But that didn’t make my reality any easier to bear.
Only now, having clawed my way out of consumer debt, do I truly understand the power of Buffett’s warning. Debt may offer short-term satisfaction, but the long-term price can be crippling.
4. Spend what is left after saving
Buffett famously flips the typical budgeting script: “Do not save what is left after spending; instead spend what is left after saving.” Simple yet revolutionary.
Like many, I used to treat savings as an afterthought. I’d spend first, save later—often saving little to nothing at the end of each month. It seemed harmless at first. “I’ll start saving properly next month,” I told myself repeatedly.
Predictably, “next month” turned into “next year”. Suddenly, I was in my mid-30s with little savings to show for my years of hard work. A recent study revealed that 20% of UK adults have less than £100 in savings, indicating just how common my mistake is—but common doesn’t mean comfortable.
Now, having finally shifted my budgeting priorities, saving first and spending second, the difference is stark. It’s clear that had I started this practice sooner, my financial security today would be markedly stronger.
Final thoughts
Ignoring Buffett’s straightforward advice wasn’t a deliberate act of rebellion—it was simply the inertia of convenience. These lessons—never losing money by avoiding reckless risks, continually investing in oneself, steering clear of high-interest debt, and saving first—aren’t just financial principles. They’re life principles, advocating for a balanced, thoughtful, and proactive approach.
I can’t rewind time or erase past financial missteps. But what I can do—and what I urge anyone reading to do—is to adopt these guidelines now. It’s not just about securing financial wealth; it’s about ensuring future peace of mind. Buffett’s wisdom, I’ve realized, isn’t about complexity or brilliance. It’s simply about the discipline to make smart, steady choices consistently—something I wish I’d understood sooner.
