Money Guidance from the great Warren Buffet

2014.08.06 saving money 1

In the last century, Warren Buffet is undoubtedly one of the most successful investors. His guidance and methods are so simple. Here are some invaluable tips for you to use.

Take Credit carefully – Be wise, and you can succeed without getting into debt. Clever debt aids in investing in your future. You are left in a stronger place long term.Buying furniture for example has a negative long term effect and is not an investment, buying a house on the other hand is an investment and taking a bond is a positive thing.

Always pay yourself before anyone else – It is so important to budget. Spend what is left after saving, and not the other way round. Know what you want to save monthly and make this a priority. This will aid you going forward in acquiring good assets.

Know your good and bad habits – A lot of our money habits have been inherited and take a conscious choice to break the bad ones and replace them with good ones, that only serve you in the short, medium and long term.

Understand the difference between price and values – Always look at the yield of both these words. In Mr Buffets words: “It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.” Do not be scared of Investing

Here are some words and terms you need to know

  • Open a brokerage account
  • Pick an index fund
  • Buy the fund through your brokerage account
  • Invest Long-Term

Mr Buffet always suggests that if you invest in anything, it must be there for the long term. Have a proper strategy, get someone to help you. Always look at the big picture.

Money does NOT make the world go around. The real focus in life is Family, Health and Friends, the rest is a means to the end. Sure money creates options in life. But remember the things that really count. Remember that materialism does not make one happy. However be wise in your choices with your money.

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