As you’re reviewing your budget and personal finances, you may be wondering, “Is this really going to work? Everything seems to be moving too slowly.” Well, don’t take it from me, listen to the secrets of wealth straight from a man that is currently worth $45 billion – Warren Buffett (just so you can see all the zeros, that’s $45,000,000,000.00).
Warren was born in 1930 and grew up in Omaha, Nebraska. Even as a child, he was interested in making money. He would go door to door and sell items like chewing gum, magazines, and soda. One of his most well-known investments as a child was a pinball machine that he placed in the local barber shop. It began to create such a large cash-flow that he was able to buy other machines and place them in several different barber shops in the area. He also purchased property and rented the land to the local farmers. Warren learned from these experiences as a child and later became one of the richest men in the world. He recently gave five tips to building wealth and success that was featured on Yahoo!’s homepage.
Top 5 Tips to Build Wealth and Success
Live Below Your Means – If you hadn’t noticed by now, I’ve been preaching this for weeks now. Get out of debt and don’t buy too many of those big-ticket depreciating assets. Once you are out of debt, it is very easy to accumulate money to invest.
Bounce Back From Defeat – Defeat can teach us so much if we just pay attention. Every success story has a failure along the way, but the individuals involved learn to brush themselves off and be better next time. Take a look at Donald Trump, Michael Jordan, or Steve Jobs. Donald went bankrupt multiple times before becoming wealthy, Michael was cut from the high school basketball team, and Steve Jobs was fired from Apple. Clearly each of these guys bounced back from defeat and have each become a huge success.
Self-Promote – Each one of us has a great talent or a special connection. Know your strengths and learn to network, and you will go far in life.
Have Street Smarts – If something seems like it’s too good to be true, it most likely is. Don’t get caught up in making money fast! The money will grow, but you have to stay patient and invest wisely.
Buy Cheap – The rich became rich because they purchase wisely. My wife was actually just talking to me about writing a guest post. She knows how to find great deals on clothing. She can go into a rack of duds and pull out something unbelievable at a rock-bottom price! Believe me, she knows her stuff. The rich hardly ever purchase items without hunting out a discount.
I hope this article has inspired you to become debt free and live below your means! It’s even tough for me sometimes… those Mercedes sports cars sure look sweet and I wish I were driving one right now, but I know that the payments would keep me trapped for a long time. I would not have the extra money to make investments for my future. Just hold out a little longer! Once that debt is out of the way and you begin putting some serious money in the bank, you’ll realize that it was all worth it.
My name is Derek, and I have my Bachelors Degree in Finance from Grand Valley State University. After graduation, I was not able to find a job that fully utilized my degree, but I still had a passion for Finance! So, I decided to focus my passion in the stock market. I studied Cash Flows, Balance Sheets, and Income Statements, put some money into the market and saw a good return on my investment. As satisfying as this was, I still felt that something was missing. I have a passion for Finance, but I also have a passion for people. If you have a willingness to learn, I will continue to teach.