Always Invest For the Long Term
Warren Buffett established himself as one of the U.S.'s richest men from two investments that he made at a young age. He held on to them for decades, and the return on these investments made him good fortune. As such, he advises that you should invest your money for long-term returns rather than short-term gains.
Never Invest In a Business That You Can't Understand
Entrepreneurs are always searching for investors like you to provide monetary support for their great idea. However, Buffett recommends against putting your money into a business that you can't understand, which is good common sense. If your friends want you to lend them money for ventures that are complex or bizarre, keep away.
Buy a Business, Don't Rent Stocks
When you invest your money in a company, Buffett believes that you need to view yourself as a part owner of the business. Take an interest in how the company is progressing and ways that it can improve. If you help the business to succeed, then you make more bucks from your investment.
Enjoy Your Work and Work For Whom You Admire
When it comes to earning money, Buffett notes that it's important to choose a profession that you enjoy, while working for a good manager. Selling out for a paycheck to cover your bills may work for now, but could lead to you getting burnt out in the future. If you're burnt out you could lose the motivation to succeed financially.
If You Don't Feel Comfortable Owning Something For 10 Years, Then Don't Own It For 10 Minutes
Getting caught up in the buying process leaves many people with purchases they regret, such as a fancy car they can't afford or a big house in a neighborhood they hate. With that in mind, Buffett recommends taking time to think it through. Before spending any large sum of money, decide whether you are in it for the long-haul.
I Don't Look to Jump Over Seven-Foot Bars: I Look Around For One-Foot Bars That I Can Step Over
Although challenges are essential to learn and grow, they also present a greater risk of loss and failure. Buffett believes sometimes the best opportunities are the ones that make sense and aren't difficult. Rather than playing the stock market and risking high loses, you can put money away every month to build up your savings. While high risk equals high reward, there are simpler options that can be beneficial to your bank balance too.
You Don't Have To Be a Rocket Scientist
Buffett notes that your IQ doesn't matter when it comes to making money. You do not need a business degree or an accounting qualification to understand the basics of creating a budget, tracking your spending, and staying on top of your finances.
You Only Find Out Who Is Swimming Naked When the Tide Goes Out
Buffett believes that you don't know who's bluffing or hiding important information when it comes to money. If you think that everyone around you is better off financially, then you can stop worrying about it. Stick to tracking your own finances rather than keeping up with your friends and neighbors. People don't openly discuss their financial troubles until something goes wrong or is made public, such as a foreclosure.
A Public-Opinion Poll Is No Substitute For Thought
Buffett has made his own investment decisions over the years rather than listening to public opinion. Just because everyone else is buying a new car or investing in expensive gadgets does not mean that you have to do the same. Consider your individual financial needs rather than swimming with the tide.
Money Is Not Everything
It is hard to believe that one of the richest men would say that money is not everything. However, Buffett emphasizes that money is not the only thing in life and that there are other factors that you should focus your attention on, such as family.
