How Warren Buffett’s Advice Can Help Renters Save for a Down Payment in 2025
Written by
Laura Beck
Edited by
Amen Oyiboke
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If you’re dreaming of homeownership but struggling to save that down payment, Warren Buffet has some advice for you. Yes, the Oracle of Omaha might be one of the wealthiest people in America, but he has everyday advice that applies to most people.
Pay Yourself First
“Do not save what is left after spending, but spend what is left after saving,” Buffett has famously said. This simple flip in mindset could be your ticket to homeownership. Instead of hoping there’s money left at the end of the month, make saving your priority.
Cut Those Unnecessary Expenses
Love your daily coffee shop visits? You might need to rethink some habits. Buffett, who still lives in the same modest house he bought in 1958 for $31,500, believes in living below your means — but not in making yourself miserable. The key is finding a balance between saving and living well.
Try tracking every dollar you spend for a month. You might be shocked to find how much goes to subscriptions you barely use or takeout meals you don’t remember eating. Those savings could be going toward your future home instead!
Live Below Your Means (for Now)
Sure, your friends might be living it up in luxury apartments, but Buffett’s lifestyle proves you don’t need to spend big to live well. His favorite breakfast? McDonald’s. Sometimes the simplest choices can lead to the biggest savings.
Consider a more modest rental while you’re saving. That difference in rent could become your down payment fund faster than you think.
Keep Your Down Payment Safe
For money you’ll need soon (like a down payment), Buffett recommends keeping it somewhere safe. “The one thing I will tell you is the worst investment you can have is cash,” Buffett said at the 2022 Berkshire Hathaway annual meeting. But for near-term needs like a house down payment, a high-yield savings account might be your best bet.
Avoid Consumer Debt at All Costs
Buffett has “an American Express card, which I got in 1964. But I pay cash 98% of the time.” Why? Because consumer debt can eat away at your savings faster than you can build them. If you’re serious about saving for a house, keep those credit cards in check.
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