Guest Post by Michael Vincent
Most people, if asked about their financial goals, would instantly say they want to be rich, or to have the financial freedom of being able to buy or pay for anything their heart desires. Saving money is rarely ever on the top of anyone’s list.
Investor Warren Buffett himself strongly believes in the value of saving, despite having billions of dollars to his name. You might want to pick up a pointer or two from one of the world’s richest men…
1. Be careful with your investments
Buffett has been quoted as saying that the first rule of investing is to “not lose money”. The billionaire has placed so much emphasis on this rule of investing, that his second rule is “not to forget rule number 1″. Do not get into debt unless you are absolutely sure that you can profit later on, he advises.
2. Do what you love
Another tip from Buffett is to do something you love. Only then can you find satisfaction from work or your job. If it’s not so easy to just pack up and quit your current job, why not make a hobby out of what you love doing? And maybe try making just a little money out of it? Pursuing your passion can bring lots of fulfillment—and that is something no amount of money can buy.
3. Don’t purchase expensive toys
Some people who successfully earn their first million dollars immediately purchase a luxury vehicle or an expensive toy. As a practitioner of frugal living, Buffett avoids luxuries such as yachts and luxury cars. For him, these expensive “toys” only cause headaches. Buffett advises investing extra cash in investments that can yield good interest rates instead.
4. Do not waste time
To the Berkshire Hathaway CEO and founder, time is as valuable as money. When doing business negotiations, Buffett advises researching and making a decision in advance. He advises against any unnecessary talk, which he likens to “thumb sucking.” If you are making a business proposition, be straightforward and name your price straightaway. Buffet says he won’t talk with anyone unless they give him a price. He also makes decisions right on the spot.
