Most of us just have a desire to create financial wealth. The rich will agree that the real financial wealth is a certain amount of money that gives a sense of security and prosperity. It is not about the expensive car in the garage or the new Rolex on your wrist. It is about waking up in the morning without the worries of how to pay bills at the end of the month. One of the richest men on the planet, Warren Buffett, has few pieces of advice for those who like to listen and increase their chances to become richer.
Have Multiple Flows Of Income
Earn from different sources. If you have only one job and you fully depend on the income it gives to you, it is time to find other options. Two incomes are always better than one, because in the case where one fails, you can always rely on another one.
Save Wisely Then Invest
When you earn your money, try to find a way to save it. Once you get your salary, do not run to the first store in order to possess more things than you do not really need. Instead, spend some amount after saving, do not save after spending. This is a golden rule of finance and it can be life-changing for many people. Decide what amount you should save each month and if you earn something more, spend it, but do not touch the fund for saving. Also, do not save just for saving, save to invest back
Spend With Common Sense
Pay attention to the real value of the thing you buy, not just to the price. Sometimes, the market is under big changes and you can buy a house for a cheap price and sell it later for much bigger amount. Spend the money smartly and on things that will make you wealthy in future.
Create Multiple Investments
When you have all eggs in one basket, the situation might be hard if the basket falls down. If you invest your money in real estate, stock market, private business and few more things, the chances to grow and make profit are much bigger.
The money can come and go, but your knowledge and skills stay with you forever. Your mind is your biggest investment. Therefore, take some time during the day to read and educate yourself if you want to achieve financial freedom.
The Important Take Away
Warren Buffett is certainly the man who knows what he is talking about. His fortune is measured in billions, so follow these rules in everyday life and make a real progress. Small changes can make miracles in longer period. Habits are made to be changed and replaced by smarter behaviours.
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