Great Money Advice From Warren Buffett.
There is no one with greater credibility on the topic of money advice than Warren Buffett. Inc. Magazine asked him to share some of his best money advice for people who want to do the best they possibly can with their finances.
Here is some of what he shared in that interview. As always he is clear, concise and brilliant! Take Mr. Buffett’s advice to heart and apply it to your finances and watch things improve in your financial life.
Never lose money.
“Rule No. 1: Never lose money. Rule No. 2: Never forget rule No. 1,” Buffett has said. Of course, this is kind of a no-brainer–I don’t know anyone who thinks losing money is a good idea.
But get beyond that obviousness, and this is practical advice that is very wise: avoid risk whenever you can. In particular, he says, to be happy and successful, never risk something you need to get something you just want–even if the odds are a thousand to one in your favor.
With this rule in mind, Buffett himself has refrained from making many risky investments over the years, and passed up what could have been big gains, for instance in technology. Over time, though, this risk-averse strategy has paid off spectacularly well.
Get high value at a low price.
“Price is what you pay, value is what you get,” Buffett has written to Berkshire Hathaway shareholders. So you can lose money (and violate Rule No. 1) if you wind up paying more for something than its value is worth.
This can happen, for example, when you use a credit card and wind up adding a lot of interest to the price of what you’ve bought. Or when you buy anything–from a share of stock to a piece of real estate–when everyone else is buying and the market is overpriced.
“Whether we’re talking about socks or stocks, I like buying quality merchandise when it is marked down,” Buffett wrote. It’s a wise approach.
Get into healthy financial habits.
“Most behavior is habitual,” Buffett said in a speech to college students, “and they say that the chains of habit are too light to be felt until they are too heavy to be broken.” We all have habits we’d like to break, and others we’d like to form.
Among the latter, Buffett says, the most important is saving money. “The biggest mistake is not learning the habit of saving properly,” he says. Consider using automatic deductions from your paycheck or automatic transfers from your checking account into a savings or investment account to make forming this good habit as painless as possible.
– via Inc.com
More Expert Money Advice
Here are three more experts with their best money advice for you. These are clear ideas that anyone can use to improve their financial outlook and future. Take a look and see if these experts are addressing areas where you need financial help.
Be Proactive With Your Money
As a best-selling author and host of his own popular radio show — with more than 8 million listeners — Dave Ramsey is one of the most well-known names in personal finance. His get-out-of-debt message has helped many eliminate debt and achieve financial success. For 2016, Ramsey said you should “tell your money what to do instead of wondering where it went. People know what they need to do with their money, but they just don’t do it. Be proactive with your money — do a budget, get rid of debt and save.”
Find a Job You’re Satisfied With
Clark Howard, host of the nationally syndicated radio show “The Clark Howard Show” and author of 10 books, has been helping people save more and spend less for decades. To get ahead in 2016, Howard suggested making sure you’re happy with your current job. “My No. 1 tip for Americans as we approach 2016 is if you are in a job you aren’t completely satisfied with, shop the market,” said Howard. “If your employer is being cheap about giving raises, there are tons of companies out there that are offering great opportunities right now — so shop yourself in the market, and find a better job that’s better for you and your family.”
Always Make a Plan
Chris Hogan has made it his mission to help people successfully manage their finances in their personal lives and businesses. The former national champion and all-American football player now helps people plan for the future. He said the best thing you can do for your finances in 2016 is create a plan. “Think about what your financial goals are and create a plan to reach those goals,” Hogan said. “The necessity of a plan sounds simple, but it is the one thing that many people overlook when it comes to their money. And a dream without a plan is simply a wish.” – via GOBankingRates
Do you have financial experts whose money advice you take?