Over time, the wealth of Warren Buffett mliarder continue increasing to reach US $ 66 billion. He had a strategy and vision in managing finances. The second thing that makes it able to survive over the years become the richest person in the world.
Not easy being Buffet, especially with the financial condition of the mediocre to the needs of everyday life. But you can still learn from the strategies Buffet in managing finances, such as pension funds, manage debt, and others.
Here are 10 financial tips for your particular style Buffet aged under 40 years
1. Saving now
Buffet uses the term in this case, “There is someone who sits in the shadow of a tree today because there are other people who grow it long ago.”
Saving an arduous process and it’s never too late to start. Perform routine and make it as a priority.
2. See the value in frugality
“Price is what you pay. Value is what you get,” said Buffet. He is known to be very frugal and get benefits until today.
Excessive shopping, buying useless stuff, just make you bankrupt. Many also needs food and household really do not need.
Try to shop smart by seeking promotion, coupon offers, and more. Compare goods regardless of brand. You may be able to find items that are not of well-known brands with the same quality and cheaper price.
3. All needed process
“No matter how great the talent or effort, all things need time. You can not produce a baby in one month by impregnating nine women,” said Buffet.
Just because you are almost 40 years old does not mean to have a big house, three cars, and the balance of saving billions of rupiah. But you can create economic stability with long-term goals and the understanding that wealth takes time.
By combining smart move with realistic time frames, financial security can definitely achieve.
4. Learn from past financial mistakes.
“Rearview mirror is always clearer than the windshield,” said Buffet. There is plenty of time to belaar from the mistakes of the past than it is now. Take the time to ask, if I spread out a lot more money and owe? Am I too rely on credit?
At age 40, you have enough life experience to understand the financial mistakes that have been taken. Be aware of bad habits as early as possible so that it does not lead to the old days.
5. Limit debt
“I have seen many people fail because of liquor and borrow a lot of money,” said Buffett. “You do not need a lot of debt in the world. If you are smart, you can make a lot of money without borrowing.”
Smart money management and discipline means you do not need to rely on credit cards and loans. Be wise when owed and pay the mortgage in full so that you are likely to get a loan with low interest.
6. No problem taking some financial risk
“The risk comes when you do not know what is being done,” said Buffet.
People who do not know the investment may see the stock market is too risky. That myth. When you want to expand its portfolio beyond savings and retirement accounts, start learning investment.
7. Pay your debts
“The most important thing when you find yourself in a hole is to stop digging,” Buffett said in a letter to shareholders of Berkshire Hathaway 25 years ago.
If you owe in the 20s and 30s, began to commit remove it when entering the age of 40 years.
8. neighbor grass is not always greener
When a new neighbor bought a new car, a vacation, have a good financial condition, do not lower yourself. That attitude only cause damage to your mindset.
Stop comparing yourself to others and the purpose of your life will be more easily achieved.
9. Money does not buy happiness
“Some material things make my life more pleasant, but many are not,” said Buffet. “I am pleased to have the private plane is expensive, but has a half-dozen homes just a burden. I am a valuable asset is the health and old friends are diverse.”
You do not need to spend your whole life worrying about money. If you do not learn this now, it is necessary to begin to realize it before the age of 40 years.
10. Do not listen to Warren Buffet
“Whatever and whenever could happen in the market,” wrote Buffett. “No advisor, economy, or television commentator who can tell you from the chaos that would happen. They will only satisfy the ears but not your wallet.”
So, 10 million skilled and suggestions actually do not know your financial situation, but yourself. You do not need to be affected or seduced by anyone in this regard. Stop comparing financial performance with others, and do the best for your life.