The Montly Fool wrote an article about one of the wisest business people out there. Warren Buffett is one of the greatest investing and business minds today.
Here are 10 best money saving tips you should follow if you want to be rich beyond your wildest dreams.
Never lose money
His number 1 rule investing is never lose money. Rule number 2 is to never forget rule number 1. It’s extremely important that we keep that in mind. Once we lose more than we can afford, it will be harder for us to get back to where we started.
Get high value at a low price
“Price is what you pay; value is what you get,” We won’t feel like we’re losing money if the value of the purchase is equivalent with the price. But it’s a better deal if we can look for opportunities to get more value at a lower price.
Form healthy money habits
Make saving a habit right away. One of his biggest mistakes was not learning the habit of saving money when he was still young. The earlier we start the better. As they say “old habits die hard” so make sure to make only good habits.
Avoid debt, especially credit card debt
Consider the credit card is like a loan, it’s not free money. Some credit cards have a high interest rate and some people tend to overlook. We may struggle with it from time to time but it’s better than spending money we don’t have.
Keep cash on hand
Although it may be tempting to use that money for investment instead of changing it to cash, we must not give in and be prepared for the worst. Keep some cash in your home, when we see our money it will be much harder spend it because we’ll see the decreasing.
Invest in yourself
When we want to make an investment, the best investment would be to ourself. It doesn’t mean that we should spend on lavish things on ourself but we should invest in terms of improving our talents and make ourselves more valuable because it will pay off alter.
Learn about money
Educate ourselves about money and personal finance is important. How do we do that? By reading of course. Let our knowledge grow by learning something new every day. The more you know about personal finance, the more security you’ll have as you minimize risks.
Trust a low-cost index fund for your portfolio
One of his advices was to invest in index funds. “Put 10% of the cash in short-term government bonds and 90% in a very low-cost S&P 500 index fund”. Basically means, if we want to invest we should not put everything at one time, but instead in average amount for 10 years. We’re most likely to succeed better than other people.
Even with all his success, he also urges everyone to give back too. He’s a founder of The Giving Pledge which aims to help those in need. It’s important that we give back because without the consumers there wont a billionaire in this world now would it.
View money as a long-term game
All good things take time especially in building wealth and financial security. We’ll hit a few bumps along the way, some may be avoided and some may not. As long as we view money as a long-term issue, it can help us stay on track and never give up.
Credits to: The Montly Fool
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