Warren Buffett's one rule for middle class earners revealed

American investor Warren Buffett says "paying yourself first" is a surefire way to build financial stability throughout your life.

The advice pertains largely to those in the middle class, who Buffett says should put savings and investments above all else. The philanthropist, known for his financial lessons geared toward the middle class, promotes living a simple lifestyle, so your wealth is spread throughout every phase of your life.

The phrase "pay yourself first" refers to a personal investment in one's future.

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"Do not save what is left after spending, but spend what is left after saving," he said during one of Berkshire Hathaway's - a conglomerate holding company of which he is chair - annual meetings.

Mastering the habit will secure a foundation for financial freedom, he said.

This won't be enough, though, as you'll need to clear a few hurdles to maximise your budget.

Buffett emphasised the importance of identifying wasteful expenses. Living below your means will reveal things that don't truly add value to your life.

That's only half the battle, as investing takes a bit of strategy. The investor suggests investing in a low-cost S&P 500 index fund.

This is a good way to ease into the market as a rookie investor and build wealth over time without getting lost in market complexities.

"Consistently buy an S&P 500 low-cost index fund. Keep buying it through thick and thin, and especially through thin," he was quoted as saying.

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Another piece of advice from Buffett: avoid collecting consumer debt.

Sometimes it's hard to avoid taking on debt with the vast number of credit card companies. Therefore, the philanthropist says he always tries to pay with cash, warning that unnecessary borrowing can be detrimental to one's financial health.

There's more to personal investment than saving money. Developing skills, garnering knowledge, and growing as a person overall will deliver the greatest return of all time, Buffett says, because no one can take it away.