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- 4 Warren Buffett Tips To Help Build Your Retirement Savings in 2025</p>
<p>Nicole SpectorJuly 14, 2025 at 9:01 PM</p>
<p>Molly Riley / UPI / Shutterstock.com</p>
<p>Warren Buffett is one of the wealthiest people in the world — and has been so for decades. How can someone worth $143 billion truly empathize with the average American who is steeped in debt, living paycheck to paycheck (or just about), avoiding the dentist because of high costs and unable to afford organic food?</p>
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<p>Taking a famous multibillionaire's advice on how to build your retirement savings in 2025 may feel bizarre or even kind of gross, but in this case, it's genuinely helpful. In the realm of the absurdly wealthy, Buffett consistently comes across as the most ethical, scrupulous and compassionate person in the crowd. The man actually delights in his high tax bill and wants to see all billionaires paying their fair share to the IRS in a way that will help alleviate the tax burden weighing on the middle class.</p>
<p>Financial experts trust Buffett not only to help guide their decisions as investors, but also to help guide the decisions of their middle-class clients. Consider the following expert-approved Buffett insights that will help you build your retirement savings now.</p>
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<p>'Know Your Circle of Competence'</p>
<p>"One of my favorite Buffett quotes is, 'Know your circle of competence, and stick within it. The size of that circle is not very important; knowing its boundaries, however, is vital,'" said Robert R. Johnson, PhD, CFA, CAIA, professor of finance, Heider College of Business, Creighton University. "Essentially, Buffett is saying invest in what you know."</p>
<p>It's not uncommon for investors — even experienced ones — to invest in companies they don't understand to a nuanced degree. "I am amazed at how many investors are willing to commit funds to firms like Nvidia when they can't explain what Nvidia does," Johnson said. "But worse than that, many retail investors seem willing to buy cryptocurrencies when they have no idea on how to value them."</p>
<p>You and your retirement plan are better off by doing as Buffett would do and limit your investments to enterprises you get 100%.</p>
<p>Find Out: If Warren Buffett's Wealth Was Evenly Distributed Across America, How Much Money Would Every Person Get?</p>
<p>Save Before You Spend</p>
<p>Another potent Buffett quote that can help steer those of us building retirement savings in 2025: "Do not save what is left after spending; instead spend what is left after saving."</p>
<p>"This sentence encapsulates Buffett's pay-yourself-first, disciplined-philosophy," said Bill London, partner at Kimura London & White LLP. "All too often people make savings optional — something they will do if there's enough money left over after paying end-of-month bills. But people who almost invariably make savings primary — in small installments, if necessary — pay themselves handsomely in the long term through the magic of compounding interest. In 2025, in which inflation and possible recessionary fears loom largest in your thinking, putting a percentage of each pay into some retirement account (401(k), Roth IRA, SEP-IRA, etc.) is an excellent exercise in this principle."</p>
<p>Embrace Index Investing</p>
<p>As noted earlier, Buffett is one of the wealthiest people in the world. Some of what he does to protect and grow his billions isn't available to the average investor or just doesn't make sense for them. That's not bad news for us; it means we can have confidence in keeping things pretty simple and that means, in Buffett's opinion, investing in index funds.</p>
<p>"Buffett has consistently said that time is a huge advantage in investing. In his 2013 shareholder letter Buffett wrote that his instructions to his wife's trustee were fairly simple: 'Put 10% of the cash in short-term government bonds and 90% in a very low-cost S&P 500 index fund. (I suggest Vanguard's.) I believe the trust's long-term results from this policy will be superior to those attained by most investors – whether pension funds, institutions or individuals – who employ high-fee managers,'" Johnson said. "Basically, Buffett is saying that time in the market is much more important than timing the market."</p>
<p>Make Money in Your Sleep — Or Else</p>
<p>If we had to narrow Buffett's tomes of advice down to just one tip, it would be: Invest your money so that, via compound interest, it makes money without you doing anything at all. Not only should you be tuned into the financial benefits of compound interest, but you should also reconcile with the fact that it's the difference, for many, between retiring comfortably and not retiring at all.</p>
<p>"One of my favorite Warren Buffett quotes is, 'If you don't find a way to make money while you sleep, you will work until you die'," said Alina Trigub, managing partner at SAMO Financial. "It's simple, powerful and absolutely true. Most Americans rely solely on their W-2 income and hope their 401(k) will be enough. But the truth is, working for decades and deferring gratification into retirement is not only outdated, it's risky."</p>
<p>And this particular insight from Buffett, applicable to retirement planning, is more relevant in 2025 than ever before.</p>
<p>"With inflation, market volatility and uncertainty around Social Security, relying solely on earned income is no longer enough," Trigub said. "Passive income (through real estate, dividends, private equity investing and/or other vehicles) creates diversification, flexibility and peace of mind. It's how you build not just retirement savings, but retirement freedom."</p>
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<p>This article originally appeared on GOBankingRates.com: 4 Warren Buffett Tips To Help Build Your Retirement Savings in 2025</p>
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