How to save earned? 10 tips from Warren Buffett, the king of world-famous investors
How to save earned?
Warren Edward Buffett is an American billionaire. He is considered a stock market celebrity. Born on August 30, 1930, he is not only an American billionaire but also an investor and philanthropist. Warren Edward Buffett mainly focuses on how to save earned and investment diversification.
He has donated 99 percent of his assets, mainly from the Bill & Melinda Gates Foundation. Warren is the President and CEO of Berkshire Hathaway. He is regarded as one of the most profitable buyers in the world.
“An investor should act as though he had a lifetime decision card with just twenty punches on it.” – Warren Buffett
He has invested heavily in large companies such as Coca-Cola, Wells Fargo & Co., Gillette, American Express, Procter & Gamble, and Kraft Foods. If anyone owns one of these companies, it is Warren Buffett.
Yes, the famous Buffett has given his message in various places not only how to earn but also how to look after the family and save. Here are some important tips that can change your life.
- From a drop, the sea is formed
- No dilemma
- Understand the nature of work before working
- To prevent small leakage
- To make a living from debt
- Don’t follow others
- Try to avoid total loss
- Focus on risk assessment
- Understand the true meaning of success
From a drop the sea is formed:
He saved most of the money he earned while working for Guru Benjamin Graham’s company. He insisted on saving even a small amount of money to avoid expenses. To some extent, he insisted on reading. In this way, he used to buy old and new magazines that he had to read.
He did not spend the small amount saved in this way unnecessarily. He knew that the sea is formed from a drop. Saving in this way is not about what others say, but about focusing on how you benefit from doing so. He paid more attention to what his conscience thought than to what others did.
The dilemma of what to do or not to do or not to be in a position to do. To decide If that decision is right, then life has changed, even if it is wrong in some way, we will learn from that mistake. Many opportunities in life are likely to overwhelm the entire company due to the delay in the decision-making ability of people in dilemma. Therefore, after studying the information you have, you should make a decision immediately. There is no reason for ambiguity or dilemma.
Understand the nature of work before working:
Before taking a company, deciding to start a business, or starting work, it is important to understand the nature and tendency of that work. Ask yourself the above 12 questions and make a decision only after you are convinced. Study each word carefully before signing a company’s decision paper. Save documents so that long and cumbersome points are limited to a single page.
To prevent small leakage:
To analyze the need for small expenses in the company. To control not only the big expenses of the company but also the small expenses. Even if the small expenses that have taken place in many places are stopped, there is a strong possibility that the company will go into profit by avoiding many expenses. Think carefully about whether it would be appropriate to do so in the name of the company.
To make a living from debt:
Seekers can never become rich. Similarly, if a company is in excessive debt while running, that company will not be able to make a profit for a long time. So running a company with a huge debt is a stressful life. You can improve your personal living by using a credit card. But it can additionally have a damaging impact on your health.
Don’t follow others:
Don’t listen to what the crowd says. Don’t follow the crowd. Try to walk away from the leak. To do this, develop your basic skills. Do not waste your art and skill by being part of the herd. When it comes to investing, don’t go for less than your full potential. Believe in your original thinking, analysis.
Always keep up the good work. Hold on to the work you believe in. Warren continued his life’s work, always moving his partner forward with him, which is why he has been in the investment space for the past 60 years. His company Berkshire Hand Way is also moving forward with him, sometimes slipping and sometimes running. On difficult days, there was no question of giving up.
Try to avoid total loss:
The most important thing to keep in mind when investing is that if the company you are investing in is incurring more losses than you think, get rid of it immediately because if there is a long-term loss in a place where there is a large investment, it is likely to affect other profitable companies. Warren believes that it would be better not to invest in the place where there is a loss, and to forget about the place where the investment has been made.
Focus on risk assessment:
The main reason for the loss in any company is the weakness in early risk assessment. Most attention should be paid to risk assessment. This will make it less likely that you will be able to absorb it for a long time. With risk assessment and risk mitigation measures, companies with long-term competitiveness can gradually make a profit for you.
Understand the true meaning of success:
All of the above may be a financial success, but don’t make financial success your goal in life. Along with financial success in life, family success also means success in the relationship between husband and wife. Money can only be successful for a short period of time in life, but more than that, focus on family and marital success. For that, explain the value of your dream to your family. Try to connect them to the things you enjoy. If you can’t connect, try to make them happy, enjoy them or talk to them.
Warren’s children have never been stingy about what they want to be, as a father, to always guide them, to support them in their happiness. He always focused on creating a secluded environment for his wife. Can’t you share your happiness with other people happy? Maybe it’s you who are doing these things in a more balanced way than Warren! So, you’re a more successful person than Warren.