If you want to be rich…or at least richer…you can’t be taking advice from a bonafide self-made bazillionaire, like Warren Buffett. He can certainly afford the lavish life, but part of the reason why he’s so wealthy is because he’s been smart with his money. If you want to follow in those footsteps, here is some valuable money advice from one of the masters: Warren Buffett himself.
1. Be Careful With Debt
This one should be obvious. Buffett recommends that you borrow very wisely, if you borrow at all. Even smart debt can get you into big trouble if you have too much. However, good debt includes things that get you into a better position over the long run, like getting an education or investing in your business. Credit cards and things like payday loans are always bad debt.
2. Save First
Mr. Buffett also advises everyone thusly: “Don’t save what is left after spending; spend what is left after saving.” How? Try to start by saving just 1% of your income, if that’s all you feel you can do. But commit to it. Then, make a budget and account for every penny you earn and spend. Make a goal to up your savings percentage by one percent every month until you’re at a percentage you like. (Discount sites like LivingSocial can help you save more when you do need to spend.)
3. Associate With the Right People
He says, “It’s better to hang out with people better than you. Pick out associates whose behavior is better than yours and you’ll drift in that direction.” I don’t know about all of you, but I’m going to start hanging out with Warren Buffett.
4. Do What You Love
You’ve probably heard similar advice before, but few people’s business advice hold as much water as Buffett’s. According to him, “In the world of business, the people who are most successful are those who are doing what they love.” If you hate your job, do you feel motivated?
5. Shop for a Deal
No matter what you’re buying, Buffett is of the opinion that, “Price is what you pay; value is what you get. Whether we’re talking about socks or stocks, I like buying quality merchandise when it is marked down.” Want to go out to eat? Check for coupon offers before deciding where to go. Have kids who love fruit snacks? Buy 8 boxes when they’re on sale. And when traveling, try sites like Airbnb or Couchsurfing before booking a hotel.
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