Warren buffet's best money advice

Borrow Wisely:-

Warren Buffett advises against excessive borrowing, such as credit card debt or unnecessary loans. 
Some experts divide borrowing money into "good debt" and "bad debt."
 • Good debt is investing in your long-term future, such as a mortgage or student loan. Ideally, it should not have a negative impact on your finances.
 • Bad debt drains your finances with no prospect for future growth.


Pay Yourself First:

 Prioritise your savings, not saving what is left after spending.
When budgeting, consider what is necessary to cover your basic needs, then figure out how much you want to save. The leftover is spending money. If it helps, think of your savings and investments as a monthly expense.



Don't Underestimate Your Money Habits

Many people fall into bad money habits and don't realize it until their habits become hard to manage.
If you want to change your habit, start by breaking it down. Understand your cue, reward, and routine, then use it to break the cycle of your habit.


Break the Paycheck to Paycheck Cycle

Trying to patch up financial issues that are causing you to live from paycheck to paycheck can keep the cycle going, such as payday loans, and hardship withdrawals from your retirement account. It may get you out of immediate trouble but will set you up for eventual failure.
 • Instead, consider looking for regular expenses you can trim.
 • Reevaluate your needs vs. wants.
 • Downgrade.
 • Learn some basic skills to deal with emergencies yourself.

 
Price and Value are Not the Same Thing

Warren Buffet is known for his frugality. Frugality isn't about buying anything at a low price - it is about buying value at a low price.
The key is not just to look at the price, but to keep value in mind, too.



Investing is Easier Than You Think

According to Warren Buffet, if you invest in a very low-cost index fund over time, you'll do better than 90% of people who start investing at the same time. To start, Buffet advises to put 10% of the cash in short-term government bonds, and 90% in a very low-cost S&P 500 index fund.
The money you want to invest outside of your retirement accounts:
 • Learn some basic investing terminology.
 • Open a brokerage account.
 • Pick an index fund.
 • Buy the fund through your brokerage account.







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