Saving money is a process which is composed of everyday even small, single act of saving. It is very important to be systematic, because when you save regularly, you will reach the best results of this activity and you will save more money. Let’s have a look at Warren Buffet, who is an American business magnate, investor, and philanthropist.
What does Warren Buffet say on earning?
“Never depend on single income. Make investment to create second source.”
So, it’s better to have two or more sources of earnings, because when one of them fails, you have the other ones.
What does Warren Buffet say on spending?
“If you buy things you don’t need, soon you will have to sell things you need.”
So, go for shopping with a shopping list and keep an eye on prices, even if it’s super offer or sale!
What does Warren Buffet say on savings?
“Do not save what is left after spending, but spend what is left after saving.”
Well, this sequence is the best in practice. Try it on your own!
What does Warren Buffet say on taking risk?
“Never test the depth of the river with both the feet.”
Here goes about diversification. It’s more safe (the risk is lower) when you invest in three different assets or keep money in three different banks.
What does Warren Buffet say on investment?
“Do not put all eggs in one basket.”
Again it’s about the risk, which is lower when you diversify your assets.
What does Warren Buffet say on expectations?
“Honesty is very expensive gift. Do not expect it from cheap people.”
Well, it’s a pure live 🙂 You know it for sure, that not everyone is honest. Honest man and knaves may possibly wear the same cloth 🙂
Keep all these rules in your mind and live in accordance with them. It will be good for you!