Money Management

Should you listen to this Warren Buffett advice? 

If you’re hoping to be very successful professionally or financially, it can help to pay attention to tips from others who have achieved that dream.

Warren Buffett is one of those people whose advice you may want to listen to. The self-made billionaire is one of the greatest investors of all time and he’s managed to build a large business empire that afforded him untold wealth.

Buffett gave one simple explanation of what sets “really” successful people apart from others, and this advice especially is worth taking into account when making your own life choices.

Could this be the key to true success?

So, what does Buffett think sets successful people apart from others?

“The difference between successful people and really successful people is that really successful people say no to almost everything,” Buffett said.

Buffett has implemented this strategy himself, opting out of certain types of hot investments even as others jumped aboard. One example is cryptocurrency, which the famed investor repeatedly made clear that he was not interested in investing in, even when a growing number of Americans were embracing this asset class.

Buffett was also slow to jump into technology stocks in the early 1990s and 2000s, but years later he indicated he was not regretful of the fact he’d stayed out even though there were some missed opportunities.

“I don’t worry about the things I miss that are outside my circle of competence of evaluating,” Buffett said. “It’s not a mistake because I miss Netscape or something like that.”

Should you take this advice?

Buffett’s advice can be helpful when you’re making decisions about what to do with the money in your brokerage account. There are tons of people out there who may try to convince you to invest in something either because they get a fee or commission for doing so or because they really believe it’s the right course of action (even if they don’t necessarily know if it’s right for you).

You shouldn’t necessarily jump on many or most of these ideas, but instead should develop your own solid investment plans and stick to them while saying no to everything outside of your comfort zone.

But, Buffett’s advice can actually go far beyond just saying no to investments that don’t fit in with your careful plans. It can also apply to other financial and life decisions you make as well. For example, you don’t want to overcommit yourself to activities you don’t enjoy, and you don’t want to say yes to spending money on things you don’t value just to keep up with the Joneses or because you feel like it’s the common thing to do.

If you define how you want your personal and financial life to look, you can set clear boundaries and say no to anything that doesn’t fit into them. It may feel uncomfortable not to do what everyone else says or what others are asking you to, but you’re in the best position to set yourself up for the future you want. You should avoid saying yes to anything that would lead you off that path.

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Consumers may have lots of opportunities to save — and spend — money. 

Shopping on Amazon can be both cost-effective and convenient. After all, instead of having to drive to a store and wait in a line to check out, you can load up a digital cart with purchases and wait for them to arrive at your door. And if you’re a Prime member, you can enjoy free two-shipping on most orders.

Meanwhile, Amazon’s competitive prices make it a popular shopping option for consumers on a budget. And you may find that you end up with lower credit card bills by making purchases on Amazon. This especially holds true if you’re able to capitalize on mega-sale events.

In 2022, Amazon held a bunch of those. First there was Prime Day, a two-day event that took place in July. Then there was October Prime Day, followed by Black Friday and Cyber Monday.

The question is: Just how many mega-sales will Amazon run this year? And should you aim to take advantage of them?

Prepare for a series of deals

There’s a reason Amazon likes to introduce shopping events like Prime Day — all the hype tends to draw consumers in, thereby adding to the retail giant’s revenue. Based on the success of Prime Day and October Prime Day in 2022, it’s fair to assume that Amazon might hold its usual summertime Prime Day event this year and then have a follow-up sale ahead of the holiday season.

In fact, last year, a lot of retailers adopted the strategy of starting their holiday deals early. The logic was that putting items on sale in October would mean reaching customers before their holiday budgets got spent down. So it’s conceivable that Amazon will go a similar route this year. It may even host its follow-up Prime Day event a little earlier in an attempt to beat competitors to the punch.

Meanwhile, we can pretty much bank on a host of Amazon deals on both Black Friday and Cyber Monday. These are established deal days, so to speak, so there’s no reason Amazon wouldn’t stick with them.

Should you shop during Amazon’s mega-events?

The discounts available during shopping events like Prime Day can be huge — but that’s not always the case. And unfortunately, what often happens is that consumers feel pressured to shop during major events and wind up spending money they can’t afford to part with on items they don’t really need or want.

That’s why instead of making plans to shop during mega-sales, a better bet is probably to maintain a list of items you want or need and keep track of their prices. If you’re hoping to upgrade your laptop and see a great deal hit during Amazon’s next Prime Day event, then by all means, pounce — especially if you have the money in your savings account to cover that purchase. But you shouldn’t just buy a laptop on Prime Day because you see it heavily discounted.

All told, Amazon might offer shoppers loads of bargains in 2023. But it’s important to spend your money carefully, especially if it’s gotten tight and you don’t want to end up in debt.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Maurie Backman has positions in Amazon.com. The Motley Fool has positions in and recommends Amazon.com. The Motley Fool has a disclosure policy.

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Giving a little can save a lot. 

As stimulus checks appear to be a thing of the past, 98 U.S. cities are stepping in to help low-income households by providing universal basic income (UBI). The following cities either have a pilot program underway or in the planning phase:

What is universal basic income?

UBI is a government program in which every eligible resident receives a monthly payment. According to the Stanford Basic Income Lab, UBI programs have these five characteristics in common:

Periodic payments. Rather than receive a one-time payment, eligible recipients receive regular payments. More often than not, payments are made once a month.Cash payments. Recipients are sent a check rather than provided with a benefit card or voucher. They can cash the check, deposit it into their bank account, and otherwise use it in a way that best meets their needs.Checks are universal. The pilot programs currently underway have limited the number of recipients. However, on a larger scale, checks are not targeted to a specific population.Individual payments. Payments are made to every adult citizen, not just every household.Unconditional payments. Payments are made with the belief that recipients are in the best position to know what they need. Checks arrive with no strings attached.

In short, UBI is designed to lift those in need out of poverty. The goal is twofold: Offer dignity to an often overlooked segment of society, and save taxpayer dollars.

How UBI can save money

Based on 2021 U.S. Census Bureau figures, Scientific American points out that 37.9 million people live in poverty in the U.S. That’s 11.6% of us living at or under the poverty line. Offering those folks UBI would save billions of dollars by reducing the social costs of poverty, including the negative outcomes associated with childhood poverty.

Won’t people quit their jobs?

One argument used by those who are against UBI in any form is that “free money” will disincentivize work. In other words, once people have a few extra dollars they will quit their jobs. Scientific American pointed to three pieces of evidence that put that fear to rest.

In 2021, the Biden administration decided that it wanted to expand the Child Tax Credit. Not only was the maximum credit raised, but parents could opt to receive a portion of that credit each month by check or direct deposit. Although Republican lawmakers put an end to the program in December 2021, the expanded Child Tax Credit lifted 3.7 million children out of poverty for a time. In addition, parents’ work participation was not significantly reduced.Alaska’s Permanent Fund Dividend sends an annual cash payment of around $1,600. While it contributes to poverty reduction, there has been no negative impact on Alaskan’s willingness to work.A recent analysis of a UBI pilot program in the Canadian province of Manitoba found that few people stop working while receiving a guaranteed income. Those who do quit, do so for good reasons. For example, some leave work to take care of young children, while others leave to finish their high school education.

UBI programs do not provide recipients with enough money to play the stock market or retire. Instead, they’re intended to make life a little less difficult for those who struggle financially.

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Improve your house, lower your costs. 

I currently rent my home, although I am hoping to buy my own place in the not-too-distant future. For me, one of the most frustrating things about this is my limited ability to make significant changes to my rental. While home improvements certainly cost money, some of them can also save you money, either immediately or over the long term. This is especially the case when it comes to home improvements for greater energy efficiency and water savings.

It’s probably true that adding new energy-efficient windows or solar panels aren’t as sexy as, say, remodeling your kitchen. But these improvements will generally pay for themselves more reliably, both in lower utility costs as well as being able to command a higher price for your home if you sell in a few years. Saving money on utilities is a win for your bank account, and saving energy and water is a win for the planet. Check out these home projects to save money on utilities in 2023 — and beyond.

1. Water-saving fixtures

I have encountered many people who have a poor opinion of low-flow fixtures like shower heads and toilets. Thankfully, the technology involved has come a long way, and you can find highly rated shower heads and toilets that will also save you water (and therefore money). The EPA reports that standard shower heads use 2.5 gallons of water per minute, and the average American family could save 2,500 gallons per year by switching to an option using 2.0 gallons or less. Toilets account for 30% of a home’s water usage, so installing one that uses less water is a good way to save. The EPA says 1.28 gallons per flush is now possible — quite a difference from older toilets that could use 6 gallons per flush. On a related note, fixing leaks from your toilet and faucets will also help you save.

2. Smart thermostats

Getting a smart thermostat for your home will cost you money and time to install, but spending less on energy bills makes it worth it. These thermostats are programmable to the extreme — some can even sense whether you’re home or not and adjust the temperature accordingly. You can often control them from your phone, allowing for on-the-go tinkering with timers and heating/cooling schedules. CNET notes that many also provide home energy usage reports, which can show you where you might be able to save even more by turning down your heat or air conditioning.

3. Energy-efficient windows

This is the home improvement I dream about most often, as I live with drafty windows. I cover mine with plastic during the cold months, but if you own your home and have the option to switch out your windows for new ones, you should. This will be a more expensive fix (per HomeAdvisor, window replacement costs an average of $850 per window) than adding a new thermostat or toilet. You might consider funding it by tapping your home equity, say, via a home equity line of credit (HELOC). Imagine the money savings when you’re no longer letting your precious heated or air-conditioned air escape via your old leaky windows.

4. Landscaping upgrades

Your grassy green lawn is not doing you any favors when it comes to saving water. This can be an especially big problem if you live in a drought-prone area and value having a well-manicured outdoor space. In 2023, consider making some changes to your yard by bringing in elements of xeriscaping. This refers to putting in drought-resistant landscaping elements. This could be as simple as grouping plants that have lower water requirements or leaning on native plants that thrive in your specific climate, rather than maintaining a uniform grass lawn that consists of a non-native species that drinks water greedily.

5. Solar panels (if you can swing it)

Finally, you might consider investing in solar panels for your home, which can allow you to generate your own electricity and go “off grid.” Since solar panels take several years to pay for themselves, going solar might not be a home improvement you’re able to make. But if you intend to stay in your home for a good long while and want to make the investment, I’d recommend it. Be sure you do your research to see if your home is a good candidate based on panel placement and other factors before taking the plunge.

While some of these home improvements cost more upfront than others, all can help you save on your utility bills and will likely be attractive features for future buyers. Plus, you’ll be doing your part for our planet.

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The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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It’s something that’s certainly tripped me up in the past. 

Shopping on Amazon can often result in a world of savings. And since I’m the sort of person who enjoys and appreciates saving money, I aim to take advantage of different programs the online retail giant offers. One of those is the Subscribe & Save program.

Subscribe & Save lets you sign up to have items shipped to you automatically on a preset schedule — one you can tweak as needed. If there’s a special type of shampoo that Amazon tends to stock at a reasonable price point, you can sign up to have a bottle of it shipped out to you every month, two months, three months, or a different interval — it’s your call.

Using Subscribe & Save can not only make your life easier, but also, save you money. First of all, Amazon commonly offers lower prices than its competitors, so you might save money by virtue of shopping there as opposed to somewhere else. But also, when you order multiple items through the Subscribe & Save program, you’re generally eligible for an additional discount that results in a lower credit card tab overall.

But there’s one pitfall you might encounter if you rely on Subscribe & Save. And it’s one that you unfortunately really can’t take steps to avoid.

When the items you rely on aren’t in stock

In 2021, retailers across the board, including Amazon, started grappling with supply chain backlogs that led to issues with inventory. And so that year, a number of my Subscribe & Save orders were delayed or canceled due to a lack of availability. But even though supply chains have managed to dig out of that hole, from time to time, I still tend to run into problems with my Subscribe & Save orders due to Amazon not having the items I need in stock.

Recently, in fact, I was scheduled to receive a shipment of a supplement I take daily at the start of January. It’s an item I’m set up to receive at the start of each month. At the very last minute, Amazon informed me that my item wasn’t in stock, and that they couldn’t find a replacement (such as a different quantity).

That put me in a bind. Without going into too much detail, I’ve found that this particular supplement helps me avoid certain health issues, so I make a point to pop those pills daily. Since Amazon emailed me at the last minute to inform me of a problem with my order, I had to run to several pharmacies in town in an attempt to find it. And, I wound up paying a lot more for a one-month supply than I normally would, since I was in a tight spot and couldn’t wait on that purchase.

Have a backup plan for the items you truly need

Amazon’s Subscribe & Save program is definitely a great one. But it’s not perfect. And unfortunately, you never know when an item you rely on won’t be available to ship out.

That’s why you should have a backup plan when it comes to the items you’re truly dependent upon. If you have an infant in diapers, for example, and get your diapers auto-shipped through Subscribe & Save every month, you should have an extra few weeks’ worth on hand.

In my case, this recent Subscribe & Save snag prompted me to do some research and stock up on an extra month’s supply of my supplement at a reasonable price. This way, if there’s another issue, I won’t have to scramble like I did at the start of the year.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Maurie Backman has positions in Amazon.com. The Motley Fool has positions in and recommends Amazon.com. The Motley Fool has a disclosure policy.

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