Do you know who Warren Buffett? If you are not familiar with the subject of investments, this man is recognized as the “Oracle of Omaha” for having a very accurate vision of the world of the stock market. He has created his fortune of $120 billion dollars by managing his money and investments. Hence, it is an authorized voice to give recommendations. And fortunately, he is such a simple person that we can all apply his suggestions. Here We leave you 10 tips that Buffett does so you don’t waste your money.
1. Credit card debt
For Buffett, it is a waste of money to pay the high interest rates on credit cards. The tycoon prefers a thousand times to use cash in most of his expenseswhich allows you to avoid going into debt and paying high interest.
2. Games and bets
For Buffett, exciting games of chance are an unnecessary expense that only benefits those who operate casinos and lotteries. On some occasion, He went so far as to describe games as “a tax on ignorance.”. And for all those who seek to become millionaires in this way, there is something else: betting and playing is not a strategy to increase wealth and improve your financial situation, on the contrary, it can affect it.
3. Live beyond your means
When people acquire extra money, such as a salary increase, they spend it on things they need, without prioritizing savings and investment. Living beyond your means is not only spending on things you don’t need, It is also trying to pretend to have a life that you cannot afford..
4. Miss offers and go out at night
Despite the fortune he has amassed, Buffet does not waste money on purchases (as you may already be realizing) and is always on the hunt for the best deals. Don’t even hesitate to use coupons to save a few dollars.
Likewise, for his frugal and simple life, Buffett avoids nights out.
5. Quality instead of quantity
If Buffett has learned anything in his long financial career, it is that It is better to invest in quality products instead of cheaper and less durable options. We are all tempted to buy something at a more affordable price to solve a problem, however, that resolution may only be short-term, so in the medium and long term you would have to spend again.
“It is much better to buy a wonderful company at a fair price than a fair company at a wonderful price”he wrote in a letter to shareholders, and this philosophy can also be applied to everyday purchasing decisions.
6. New cars and gadgets
Who doesn’t want a new car? I assure you that Buffett does not and for one simple reason: its rapid depreciation. Vehicles are one of the items that quickly lose their value.. He recommends it is better to buy used cars.
And as much as it is essential for you to stay up to date with technology, Buffett doesn’t think it is necessary. For example, He used his flip phone for years and only switched to an iPhone in 2020. Buffett points out that there is no need to spend on trendy technology if it does not provide real long-term value.
7. Seek or accept get rich quick strategies
Buffett amassed his fortune in investments and it took him several years to achieve what he has now. When an organization or person promises you quick wealth under a certain scheme, it could cause you more sadness than satisfaction. Many of these promises are financial traps. If someone becomes rich overnight, in many cases, it is usually due to illicit actions.
8. Expenses on unnecessary products
“If you buy things you don’t need, you will soon have to sell things you do need.”Buffett has said at other times. That very well encompasses what it means to spend on impulse, for fashion or simply for pleasure. The Oracle of Omaha always invites you to be aware of what you buy and not get carried away by a whim.
9. Follow market trends
Blindly follow what many dojust because it became fashionable or some chance event raised the price of some stock, e.g. it’s bad for your finances. It is best to make an informed decision based on the companies’ performance and the real value of the asset. That requires knowledge and not just speculation.
10. Investment speculation
Speculating when investing is like playing the lottery, which is why many get confused. For Buffett, Investing requires a deep analysis of medium and long-term goals. and not based on quick profits. There is a phrase in Mexico that says: “what comes soon, soon goes.” And in many cases, if you expect to receive large profits, it is more likely that you will only have to face significant losses.
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