There’s little doubt you’ve heard of Warren Buffett — he’s currently the fourth richest man in the world with an estimated net worth close to $70 billion. But he wasn’t born with a silver spoon in his mouth. He started his investing career at the tender age of 6 when he bought a six-pack of Coke for $0.25 and sold each can for $0.05. He also went door-to-door selling magazines and packs of chewing gum — for a profit, of course.

Wouldn’t it be great if you could employ some of his techniques to help you make money?

While none of us can be Buffett, we can all learn from him. After all, at 89 years of age, he’s still one of the smartest moneymakers around. Here are five money-management tips from Buffett that will help you reach the point where you have funds to start investing.

Image source: The Motley Fool.

1. Develop good money habits

“My dad was my greatest inspiration,” said Buffett. “What I learned at an early age from him was to have the right habits early.”

You may not have been lucky enough to have Howard Buffett as your dad to instill good habits in you, but smart financial behavior can be developed with a little work and commitment. Modifying your behavior isn’t easy, but it can be done. In his book The Power of Habit: Why We Do What We Do in Life and Business, Charles Duhigg writes that 40% to 50% of our daily behaviors come from habit. So if your actions around money aren’t leading to you having more of it to invest, it’s time to work on altering them.

Don’t wait too long, though. As Buffett once said, “Chains of habit are too light to be felt until they are too heavy to be broken.”

2. Save, save, and, oh yeah… save

The first habit to develop is saving money. In the world of personal finance, the general wisdom says to “pay yourself first” — but what exactly does that mean? Buffett says, “Don’t save what is left after spending; spend what is left after saving.”

According to a Bankrate survey last year, more than one in five working Americans aren’t saving anything from their annual income, so if you’re struggling, you’re not alone. In order to begin developing the saving habit, start by putting a designated portion of any income you receive (perhaps 10%) directly into a savings account. Then you’re free to spend the rest.

In fact, experts recommend saving 20% of your income for the future, if possible, but one thing you don’t want to do is place hurdles in your way that are too high for you to jump over. Therefore, start saving at whatever level you can, and then increase it as you build your saving habit.

Image source: Getty Images.

3. Stay out of debt

Don’t you hate it when you want to buy things but don’t really have the funds to do it? Do you buy it anyway or walk away? Buffett said, “If you buy things you do not need, soon you will have to sell things you need.”

You don’t want to fall into that trap. Debt is a vicious cycle that can have you running around in circles, never seeing an end. If you’re spending all your extra money paying off your debts — and the interest on them — you won’t have any left over to save. So how do you put debt behind you?

Refer back to No. 1 above — develop the habit of paying down any debts your take on as rapidly as possible. There are other strategic methods you can use, like making your debt more affordable and methodically paying down your balances.

4. Create an emergency fund

Buffett’s company Berkshire Hathaway (NYSE:BRK.A)(NYSE:BRK.B) has a rule to “always maintain at least $20 billion and usually far more in cash equivalents.”

Now, he’s keeping all that cash on hand primarily so he’ll be able to take advantage when investing opportunities present themselves. The rest of us — who won’t be setting aside billions of dollars — need to mirror that practice by preparing less for opportunities and more for difficulties — in other words, building an emergency fund.

Experts generally recommend saving enough to cover three to six months’ worth of your living expenses in case you encounter an unfortunate event like a job loss, medical problem, or expensive home or car repair. Once you’ve developed a saving habit and retired your unsecured debts, you should first direct all of the money you save into this fund. As soon as you have that three- to six-month cushion, you can start using some of your disposable income to invest in the stock market.

Image source: Getty Images.

5. Live within your means without compromising

You don’t need to live in an expensive house or drive a fancy car to be happy. Buffett, who could buy any property he chooses, still lives in Omaha, Nebraska, in a house he purchased in 1958 for $31,500. He regularly eats junk food, watches sports on TV, and drives a 2014 Cadillac that sold for approximately $23,500.

Of course, these are his choices — they may not be yours. But it just goes to show you it doesn’t require “stuff” to be happy. Many financial experts recommend that people live below their means so that they can save more money, but that may make you feel deprived. That’s not great because deprivation may lead to feeling bad, which may lead you to overspend in an effort to banish that feeling — which would result in you winding up deeper into debt.

But if you live within your means, then you’ll be purchasing things you’re able to afford, while still hanging onto enough money that you can meaningfully grow your savings.

Warren Buffett is an outstanding example of a person you could emulate for financial success. He’s happy living modestly, doesn’t overspend on things (including his house, car, and even the companies Berkshire Hathaway adds to its portfolio), and he always has cash on hand.

By following this advice — which all derives directly from his words — you may not be able to afford to buy a $4.57 million lunch with the Oracle of Omaha himself, but you’ll be able to gather enough cash to begin your own successful investing journey.

Dr. Annamaria Lusardi, George Washington University Professor of Economics and Accountancy joins Yahoo Finance’s On The Move to share her tips on managing money during a financial crisis.

Though the spread of the coronavirus has started to show signs of slowing down, its effects on our daily life and habits continue to endure, bringing along a multitude of financial problems and concerns.

Within the scope of the measures taken against the virus, millions of people in many countries have been confined to their homes, while millions more have lost their jobs, were furloughed or had cuts in their income, which has affected family budgets.

Here are some tips from Turkey’s first insurance company Generali Insurance – which has been operating in the country for over 150 years – on how to manage your family budget during the coronavirus pandemic.

Create an income-expenses table

Creating an income-expenses table will help you to see and control your monthly expenses. Putting the family budget on paper, in a tangible way, with all of your income and expenses laid out will provide you with a more conscious and accurate economic perspective during the coronavirus outbreak.

Only buy the essentials

The basic needs of the house and family are of primary importance during such uncertain times. Therefore, basic expenses such as food, rent and bills should be given priority in this critical period. Always make sure you have enough for your basic needs before you go for small luxuries.

Use a mobile app

Mobile applications, which already had an indelible place in daily life long before the virus came, are now of even more importance with the convenience and ease-of-use they provide. Mobile apps catered to tracking your expenses and monitoring the current state of your family budget can be of great help.

Make a shopping list

Always make a list before going shopping. A shopping list you stay loyal to will guide you, stop you from buying unnecessary extras and help you stick to what you need. One other tip: Don’t go shopping on an empty stomach, as it can make you crave unnecessary things and cloud your judgment.

Spend wisely

Be more economically conscious while shopping. Question every expense you make while creating a family budget. It is better to be a bit frugal than to overstretch your resources.

Save a bit

What the coronavirus pandemic will bring in the coming days remains unknown. When creating a family budget, try to set aside, if possible, a small amount every day. Having some savings will enable you to be prepared for similar situations and emergencies, and overcome them more easily.

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Money issues can be a major source of tension in a relationship. Jenna Taubel with First Alliance Credit Union offers tips on how you can start the discussion and foster better communication concerning your household finances which will pave the way to making Good Money Moves.

Use the button below to listen to Good Money Moves podcast episode 46 from May 303, 2020:

NEW! Good Money Moves is now available in Apple Podcasts! SUBSCRIBE HERE!

Listen to new Good Money Moves Podcast episodes Saturdays at 10:00 a.m. on News-Talk 1340 KROC AM  96.9 FM

Hear the best tips and advice for making Good Money Moves to help you gain confidence in managing your money. Every Saturday morning, Andy Brownell, from KROC AM, and Jenna Taubel, from First Alliance Credit Union, chat about a wide range of financial topics with various financial experts from First Alliance Credit Union’s knowledgeable team of advisors.

Personal Finance Insider writes about products, strategies, and tips to help you make smart decisions with your money. We may receive a small commission from our partners, but our reporting and recommendations are always independent and objective.

• When it comes to managing money, especially during a global health and financial crisis, prioritization is key.
• Whether you’re earning a reduced salary, collecting unemployment, or just trying to make smart decisions for the future, answering a few questions can help you make the most of every dollar.
• If you’re in a secure financial position and looking to the future, SmartAsset’s free tool can find a financial planner to help »

As if managing money wasn’t hard enough, chances are you have some new obstacles to contend with during the coronavirus outbreak.

Financial unrest is an unfortunate reality right now, but that doesn’t mean you should throw caution to the wind. You still have a chance to be thoughtful about the money you have coming in, whether you’re earning a reduced salary, collecting unemployment benefits, or simply preparing for an uncertain future. 

Here are five questions to ask yourself to figure out where your money should go first.

1. Does my current income cover basic living expenses?

If no … consider asking for payment assistance on your bills. If you’re a homeowner with a federally backed mortgage, you have the right to ask your lender to defer your payments for up to 12 months. If your loan is from Fannie Mae or Freddie Mac, you have options for when and how you want to repay those suspended payments. 

If you’re a renter, don’t hesitate to talk to your landlord — you may be able to negotiate a lower payment until you can get back on your feet, or skip it all together. Numerous cities, including Los Angeles and New York City, have put a temporary ban on evictions for tenants who can’t pay rent due to COVID-19 related job loss. 

If yes …

2. Do I have at least 3 months’ worth of expenses in savings?

If no … start building an emergency fund. After covering your immediate expenses, like housing and food, any leftover cash should go into a high-yield savings account that you can tap quickly whenever you need it. The coronavirus pandemic led to a record 20.5 million jobs lost in April, and the losses are still piling up. Your emergency fund gives you a softer, less scary place to land if the unexpected happens.

Some experts say you shouldn’t stop at three months’ worth of expenses — or even six months’. The more money you can save in times like these, the better. 

If yes …

3. Do I have credit-card debt?

If yes … keep making payments. Your interest rate may have fallen in the last several weeks, but chances are it’s still too high from an opportunity cost perspective. According to CreditCards.com, the average annual percentage rate (APR) is about 16% as of May 13. That’s about double the average return of the stock market. 

If you’ve freed up some cash flow during the pandemic, put anything extra toward your credit-card balance. If you absolutely can’t make payments, call your bank and ask what assistance they’re offering. Many banks will waive interest charges and late fees or even grant deferment due to financial hardship.

If no …

4. Do I have an investment account?

If no … start one. If you’re earning a paycheck and your employer offers a retirement account, what are you waiting for? Set up an automatic contribution to put a portion of your pre-tax income into a retirement plan, especially if your company offers a match.  

By putting a fixed dollar amount into the same investment every month — a strategy known as dollar-cost averaging — you’re buying into the market regardless of where prices are. This eliminates the tendency to “time the market” and invest emotionally or speculatively.

If yes … 

5. What other financial goals do I want to prioritize?

If all your current needs are met and you’re putting some of your income toward building wealth for the future, now is a good opportunity to consider what other financial goals you want to prioritize.

Maybe the coronavirus crisis has encouraged you to spend more money on local businesses, donate to charitable causes, or try new hobbies or business ventures. Or perhaps you’re more driven than ever to escape the city and buy a house in the country. Whatever it is, you’re in a position to reorganize your budget or craft a plan.

SmartAsset’s free tool can help find a financial adviser to make a plan and achieve your goals »

• Read more on managing your money in this tumultuous time:
• 3 options for people struggling to pay their mortgage during the global health crisis
• 4 reasons to get disability insurance, even if you don’t think you need it
• If you’ve been financially impacted by the coronavirus, you may be able to pause payments on these 8 bills
• How to get a stimulus check from the US government, which could pay up to $1,200 if you qualify
• In response to the coronavirus, credit card issuers like Amex and Capital One are letting customers skip payments without interest and more

Right now, spending habits are changing, for better or worse. With unemployment at an all-time high and many people working from home, your budget could be totally different from usual. You may be tight on money or have a little extra cash in your pocket.

Regardless of which end of the spectrum you’re on, now is a great time to make sure your finances are in good health. Here are five tips to keep your money matters in order.

1. Keep a spending diary.

Track every dollar you spend. It’s the foundation of a great budget. Even if you’re doing generally well financially, it’s important to keep checking where your dollars are going. You can keep your diary in an app, like Mint, or store it as a note on your phone. The combo of a good old-fashioned pen and paper also works — whatever method provides the least barriers for you.

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2. Check in on your money.

Next, review your finances regularly. This step is key to making sure that things are running smoothly and keeps you from overspending on things like overdraft or late payment fees. Even if your budget works well, it’s important to look under the hood and check in every week or two. You don’t want to be looking so often that it becomes an obsession, but often enough that you’ll catch any mistakes.

3. Think about your purchase priorities.

You can only spend your money once. When you’re tracking your spending and looking at the big picture regularly, you will be more aware of what you are doing with your money and can make more empowered decisions.

For example, if you don’t care about buying takeout, there’s no need to spend money on that if you would rather be using those dollars to work toward your savings goals or building an emergency fund.

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4. Save, even if it’s only a little.

If you can afford it, save a little money. Think of it as paying yourself first. Having power over your finances is all about planning, and a lot of that power comes from having some money saved for when you really need it. Even if you’re not the planning type, you can automate your savings account to do this so you never have to think twice about it. You don’t need a lot; even $10 or $20 a month can do it. So, if you have that money, try to put it away.

5. Go easy on yourself.

Money is an emotional thing — and so is living through a pandemic. If you mess up, it will most likely be OK. And if it’s not, you can do your best to recover. Use these tips to keep your finances in good health. Any step in the right direction, no matter how small, is worth it.

CINCINNATI, Ohio — With stores and restaurants reopening in May, there are, all of a sudden, more ways to spend your money.

And while that may be exciting, financial experts say it’s best to keep your budget and financial plan in mind. 

Abundance University Founder and financial coach Lawrence Cain Jr. believes budgeting is key as people look to go out and spend their money again.

“Be mindful about making sure you’re not just overspending on something that could cost you a few dollars or even a hundred dollars less by just being patient,” said Cain.

Cain also suggests that consumers who couldn’t afford to pay their utilities or student loans over the past couple of months should reach out to those companies to set up a plan.

“Right now you could actually plan to attack those bills and those expenses once this over.”

And coming up with a plan to attack those bills isn’t the only advice financial coaches have. Founder and CEO of Financially U Shauntel Dobbins says couponing could really help you save as well.

“You can look digitally— they still have those paper inserts in your newspaper if you still get them manually,” said Dobbins. “Look at the sale. Be strategic. Strategy is your friend.”

She also says creating an emergency fund is an essential part of saving.

“You want to be able to use those expenses, such as your recreational, your dining out, your clothing shopping to increase your emergency savings for those live-happening events.” Dobbins said.

And another way to save for your future is through investing your money.

Founder and CEO Global Eye Investments Corporation Tim Klauke suggests people invest in closed-end funds, which allows you to buy your stocks right away.

“It’s a great way for people who don’t have a whole lot of money to get into the market and be a part of this,” he said. “And it’s extremely important for people who are planning for retirement and have years to go.”

Ben Stein

Ben Stein is a respected economist known to many as a movie and television personality, but he has worked in personal and corporate finance more than anywhere else. He has written about finance for Barron’s, the Wall Street Journal, the New York Times, and Fortune, was one of the chief busters of the junk-bond frauds of the 1980s, has been a longtime critic of corporate executives’ self-dealing, and has co-written numerous finance books. Stein travels the country speaking about finance in both serious and humorous ways, and is a regular contributor to CBS‘s Sunday Morning, CNN, and Fox News. He was the winner of the 2009 Malcolm Forbes Award for Excellence in Financial Journalism. His latest book is called How To Really Ruin Your Financial Life and Portfolio.

In this interview, Stein talks about how he originally got into personal finance, why people are confused about it, why their should be a class on it and how to avoid money mistakes.

How did you originally become a personal finance expert and media personality and why do you continue to be in that field?

Well I don’t really consider myself to be a personal finance expert compared with some others. There are quite a few that know a lot more than I do. By the process of thinking about what’s good for me and my family, I learned something about it and I’ve been interested in that for a long time. My father was very good at personal finance and he would tell me about it and I came somewhat of an expert. I want to emphasize that there are many that know more about it than I do.

As to a media personality, well that just happened in large measure because people found me amusing and I did lots and lots of T.V. news interview shows. People thought I was a funny guy so they kept inviting me back to be on more and more shows and then I got my own show and then I had another show I was on. Even before that I had that astonishing part in Ferris Bueller’s Day Off and it all just sort of happened by accident but it happened not entirely by accident because I was in Hollywood and had I not been in Hollywood it would not have happened. As I always like to say, you can’t win if you’re not at the table. You can’t win at blackjack or poker unless you’re in Las Vegas or someplace where there’s a casino. You can’t win as a media personality unless you’re in a town where there’s a lot of media which would be generally Hollywood, L.A., New York and Washington D.C. I just happened to be at the table and that worked out very, very well.

Why are so many people confused about how to manage their personal finances and why doesn’t our education system teach us more about money?

That second question is a particularly good question. The education system should teach us about money; it’s an incredibly big subject. I run into people all the time that don’t have the first clue of what they should do about money. I know there’s classes at the high school near us where we live in North Idaho during summer that do teach about personal finance and they seem to do a useful job. In general, people just get the idea that they should buy whatever they feel like they want to buy, spend whatever they feel like they want to spend. There doesn’t need to be any kind of long-term planning because any kind of planning to match outset your liabilities and that is a very bad thing. That definitely should be taught in school. I only recommend two classes that should be taught in school for sure, personal finance and how to get along with your wife and neither of those is taught.

What are the most common ways people lose money?

The most common way would be spending what you earn and going into debt and then getting into debt to the point that you can’t recover. Most people do not go broke because they speculate too much in stocks; people who speculate a great deal in stocks can, although there are the exceptions, to have some knowledge of stocks and therefore don’t go broke by getting into stocks. They can also go broke, and have in recent years, by buying more house than they can afford and counting on the house itself to generate appreciation that will pay for the house; that doesn’t work as we now know.

I’d say the main way people get into terrible financial trouble is just to spend too much money relative to their income and that is an endemic problem in the United States of America and that’s the kind of thing that should be taught about in schools. There’s no reason there should not be a class. I’m thinking I should write a textbook about that. It’s an awfully good idea actually. I think I should get in talks with those that know even more than I do about planning; it’s a darn good idea.

Out of the 49 ways in which investors ruin their portfolios, as cited in your book, which one is the most significant?

To ruin your portfolio is to not plan; to not take advantage of all the historical data that tells you you’ll be better off buying index funds than picking stocks. If you really sincerely, think you can pick stocks and outperform the market, you’re in a world of hurt. If you just buy indexes and let the indexes sort of carry you along a gentle flow, you’ll do much, much better. That’s the best way to ruin your portfolio. The best way to ruin your career is to not learn any useful skills and that unfortunately is a real serious problem that a great, great many Americans have.

What are your top three pieces of financial advice to young people?

1. Start saving regularly at a very young age. Start summer jobs or part-time jobs, save as much as you possibly can.

2. When you do save, save in a safe way which I would say by buying index funds and buying funds that do not rely on stock picking.

3. Make a very careful plan for how you’re going to eventually retire even if it seems like it’s an unimaginably long way away, it comes up upon you very, very quickly.

Dan Schawbel is a Gen Y career expert and the founder of Millennial Branding, a Gen Y research and consulting company. He is also the #1 international bestselling author of Me 2.0: 4 Steps to Building Your Future and was named to the Inc. Magazine 30 Under 30 list in 2010. Subscribe to my updates: Facebook.com/DanSchawbel.