Warren Buffet is a business magnet , Investor and philanthropist . He is considered as one of the most successful investor in the world . He started investing from his youth days . He is considered as a money magnet .He knows how to attract money . Buffett is a notable philanthropist, having pledged to give away 99 percent of his fortune to philanthropic causes, primarily via the Bill & Melinda Gates Foundation. In 2009, with Bill Gates and Mark Zuckerberg, Warren founded The Giving Pledge, whereby billionaires pledge to give away at least half of their fortunes . Lets talk about 5 Rules from Warren Buffet to save money .
5 Rules from Warren Buffett to save money
1.) Say NO to all the toys :
According to Warren Buffett , whatever toys we buy , all are wastage of money , and nothing else . Warren Buffet never use his money to buy expensive cloths , expensive cars , expensive gadgets , he does not like that . He likes to invest money on good things . If you want to save money , first say no to expensive toys , cloths, Gadgets , uneless it is not necessary . Invest your money , so that it will increase your wealth value . If you don’t need them , then don’t buy any expensive things , this will reduce your wealth . Think before you buy any expensive thing .
2.) Ask For Discount :
Second rule to save money is ask for discount . According to Warren Buffet “Price is something that you pay and value is something that you get.” Most of us may find it hard to believe, but he doesn’t mind using coupons or discount options in his everyday shopping.
He believes on the simple terminology that “every Dollar saved is every Dollar earned.” And if you think he is the only one who thinks like that , then you are wrong . Actress Hilary Swank has more than $40 million net worth yet she use discount coupons at grocery stores.
If millionaires and billionaires could ask for discount or bargains, why you should feel ashamed about it!
To manage and save money like Warren Buffett, it is advised that you look for deals if needed, wait for a good price and then only buy anything.
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3.) Say Yes to saving and no to Debt :
Mr. Buffett was in Dan Patrick Show, and someone asked about the biggest financial mistake that we all make. In answer to this question he explained, people do not learn the importance of proper saving at the early stage, nor they make it a habit. However, people try to get rich in short time, and they always fail.
Also, he explained that people try to get rich, while they live their life on borrowed money such as loans, credit card, etc.
He is very clear about this rule that one should never borrow any money and one should spend only after saving money.
So, if you desire to become rich like Warren Buffett is, then you should follow the save first and spend later philosophy. You should understand that every dollar counts and you should start saving without any delay.
4.) Buy only Necessary things :
This is not a hidden fact that Warrant Buffett lives in the same house that he purchased in 1958. If he wants he can buy not one but several Mansion around the world in their wealthiest neighborhood .
He knows the money saved on these purchases can help him invest wisely in other business that will give him more return and value to the world. He considers it as the third best investment of his life because he was able to save money for other important things. We all can learn this habit from him to avoid a debt ridden life.
If you already have a home that fulfills your need then you should avoid buying a bigger home to have the extra luxury. With that extra luxury, you will get the liability , more property taxes, increased maintenance charges and many more expenses.
This rule applies to the purchasing of anything and everything. Be it a car, home, gadgets, dresses, or anything make sure you buy it with modesty to increase your net worth and save money for important thing such as retirement planning or living a happy life.
5.) Slow Down while taking decisions :
In many cases, it is easier to ignore or forget the pros and cons of a financial decision, and we regret our decision later. Because of this habit, we end up having a lot of troubles as well related to money and finances.
Warren Buffett believes his habit of slow decision making is one of the most important reasons for his success.
He many time said it himself that he not only got great success because he made right decisions, but he also avoided terrible mistakes.
Thus, slowing down in the financial decision is a great thing, and you should make a simple rule that you never decide anything about money with the flow of emotions. You should always wait for at least 3 minutes before taking any decision about money, you should check your emotions. So never ever hurry .
Final Notes :
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