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Warren Buffett is an investment and money guru. In his books and interviews, he gave a lot of useful advice, which we share with you.
I hope you know Warren Buffett. If you don't, you'll never earn respect in the financial world, where he is idolized. And for good reason. Warren Buffett is one of the richest people in the world who made his fortune through investing. In his book, he gave some advice that is quite simple and useful. We won't say that it will help you make millions, simply because no one can make you millions except you.
But these tips will help you understand the essence of money and find out the thoughts of a man who, thanks to his intelligence, has become a billionaire. So here they are.
I have seen many people fail because of alcohol. But I have seen just as many people fail because of excessive borrowing. If you are smart enough, you can make money without borrowing.
Don't try to save money after you've spent it. Save it right away.
Simple and trivial, but effective. Let's say you have enough income to cover your basic needs and you want to start saving money. Set aside the amount of money you need to pay bills and needs, then set aside the amount you want to start saving with. You can spend the rest.
This rule will help you finally pull yourself together and start saving money. Once you start doing this, there will be no turning back and it will become much easier for you to save the required amount every month.
If you want to change your habits, the best way is to simply stop doing them. Learn to understand your priorities and move in the right direction.
Ben Graham told me a long time ago that price is what you pay and value is what you get. Whether we're talking about socks or stocks, I like to buy when the price is at its lowest.
However, being frugal does not mean buying everything cheap. But it also does not mean buying valuable things for a lot of money. In other words:
It is better to buy an incredible company at a fair price than an ordinary company at an incredible price.
If you want to be more economical, next time pay attention not only to the price. The value of the product is also very important to you.
If you invest in an index fund in small increments over 10 years, you will be better off than those who invest the same amount of time, all at once.
According to Buffett, investing is very simple. Here are some tips on where to start investing:
If you don't plan to hold shares for 10 years, don't even think about buying them for 10 minutes. Put together a portfolio of companies whose value has grown in recent years. And only on the basis of this portfolio make conclusions about buying shares.
If you've already bought shares of a company, Buffett advises not to look at its price every day. Save your nerves. Many famous investors buy stocks and forget about them for a while. We are not billionaires, so it will be difficult to forget about the money invested, but it is also stupid to waste your nerves updating the summary every minute.
In his interview, Buffett said that he enjoys flying on a private jet, but having a dozen houses is already a burden. In addition, according to Buffett, there are two most valuable assets in his life: his health and friends, with whom he has been friends for a long time. Money gives a lot, but we should not forget that there are many important things in life without it.
I hope you know Warren Buffett. If you don't, you'll never earn respect in the financial world, where he is idolized. And for good reason. Warren Buffett is one of the richest people in the world who made his fortune through investing. In his book, he gave some advice that is quite simple and useful. We won't say that it will help you make millions, simply because no one can make you millions except you.
But these tips will help you understand the essence of money and find out the thoughts of a man who, thanks to his intelligence, has become a billionaire. So here they are.
Borrow money wisely
Buffett warns against taking on unnecessary debt. Credit cards, installments, mortgages — all of this will lead to the fact that one day your loan payments will exceed your expenses. And there will be no turning back.I have seen many people fail because of alcohol. But I have seen just as many people fail because of excessive borrowing. If you are smart enough, you can make money without borrowing.
Pay yourself first
If you want to learn how to save money, use this rule:Don't try to save money after you've spent it. Save it right away.
Simple and trivial, but effective. Let's say you have enough income to cover your basic needs and you want to start saving money. Set aside the amount of money you need to pay bills and needs, then set aside the amount you want to start saving with. You can spend the rest.
This rule will help you finally pull yourself together and start saving money. Once you start doing this, there will be no turning back and it will become much easier for you to save the required amount every month.
Stop Underestimating Your Money Habits
A long time ago I came across some interesting math. Imagine an ordinary girl working in an office. Every day she goes out for lunch to a nearby cafe and buys a latte and a bun there. Let's assume that she spends $ 2 on this. Now let's count. In a week she will spend $ 10, in a month - $ 40, and in a year - $ 480. You can save almost $ 500 rubles by giving up the simple habit of drinking coffee with a bun during your lunch break. I'm not even talking about the number of calories that she will also not eat.If you want to change your habits, the best way is to simply stop doing them. Learn to understand your priorities and move in the right direction.
Price and value are not the same thing
Buffett is an incredibly frugal and moderate person in his needs. Its economy is determined by the value of the product. Here's what he says about this:Ben Graham told me a long time ago that price is what you pay and value is what you get. Whether we're talking about socks or stocks, I like to buy when the price is at its lowest.
However, being frugal does not mean buying everything cheap. But it also does not mean buying valuable things for a lot of money. In other words:
It is better to buy an incredible company at a fair price than an ordinary company at an incredible price.
If you want to be more economical, next time pay attention not only to the price. The value of the product is also very important to you.
Investing is easier than you think
Here's a rule that's not easy to find in investing textbooks:If you invest in an index fund in small increments over 10 years, you will be better off than those who invest the same amount of time, all at once.
According to Buffett, investing is very simple. Here are some tips on where to start investing:
- Learn basic investing terminology.
- Open a brokerage account.
- Choose an index fund (Buffett recommends VFINX).
- Buy part of the fund.
Long-term investments are a priority
Buffett warns that it's easy to get burned by daily stock price swings. Therefore, his choice is a long-term investment.If you don't plan to hold shares for 10 years, don't even think about buying them for 10 minutes. Put together a portfolio of companies whose value has grown in recent years. And only on the basis of this portfolio make conclusions about buying shares.
If you've already bought shares of a company, Buffett advises not to look at its price every day. Save your nerves. Many famous investors buy stocks and forget about them for a while. We are not billionaires, so it will be difficult to forget about the money invested, but it is also stupid to waste your nerves updating the summary every minute.
Money is not everything
Easy for him to say. He's a billionaire.In his interview, Buffett said that he enjoys flying on a private jet, but having a dozen houses is already a burden. In addition, according to Buffett, there are two most valuable assets in his life: his health and friends, with whom he has been friends for a long time. Money gives a lot, but we should not forget that there are many important things in life without it.
