How is it that some people experience success to the maximum extent, and some can’t even make a decent living for themselves? What are the special qualities in them that a number of people lack?
I was browsing the net for top most successful people in the world, and I came across Warren Buffet, who is the second-richest American and is approximately worth $71.4 Billion. Reading further about him, I understood that he follows the same principle that we all know, but we fail to practice them.
He offers some useful insights about spending, investing, and savings. All these tips or advice are so true, and as I said earlier all of us are aware of them. However, the issue is we don’t follow them. So it’s important that once in a while we juggle our memory. Warren Buffet once said that he was just reproducing all these financial tips. This is because people forgot about it or did not follow them.
Warren Buffett Tips About:
- Earning: Ensure that your living is not dependent on a single income. Do create at least one alternative source of income, which will help you if the primary source is at risk. This means in your younger days you will have to channel all your savings and make wise investments. By doing so, you are reducing complete dependency on your job. This will help you be self-dependent one day.
- Spending: According to Warren Buffet – “If you spend on things that you don’t need, soon there will be a phase wherein you will have to sell things you need.” Though he is being very straightforward here, but the fact remains that if you overspend, soon there will be nothing left with you.
- Savings: Warren Buffet states – ‘Pay Yourself First’ wherein he explains that it is wise to spend after you have already saved or invested. When you do so, do not feel that you are sacrificing; instead consider it as postponing your consumption. For this, it is crucial to understand your payments and then there are little chances of cringing on your savings. So the nutshell is to first invest, and then spend.
- Risk Taking: Warren Advices people to take small steps. This is especially for first gen investors, who usually get carried away. They wish to make quick money; and hence, make the wrong investment.
- Investing: All of us are aware of the saying – “Do not put all eggs in one basket.” This is because a wide spread lunch plate is much better than one single item. So ensure that you create a portfolio with PPF, bonds, NSC, bond funds, mutual funds, equity, etc. including insurance.
- Expectation: Warren explains that honesty is expensive, and cannot be expected from cheap people. So, keep this in mind that it is not possible to find honest advisers especially in the field of Health and Wealth.
After going through Warren Buffet’s teachings, I understand that these are small tips which most of the tycoons take very seriously. Unlike us, who knows it all, but fail to incorporate them into our routine. I can’t say that we all will one day become Warren Buffet after following his teachings, but I can certainly ensure that our financial worries will come down to a greater extent.
Understand that a little smartness can save you from huge problems.