You must be surprised to know that Warren Buffett started investing at the age of just 11 and when he was 16 he earn money more than his teachers and professors. From childhood, he was interested in business and investment. Today, he has a wealth of $ 85 billion. They believe that anyone can become rich through determination and smart money management.
Top 4 Rules for Success and to become Rich
So let's know that those Money Management Rules adopted by them can make you rich.
#1. End the Paycheck to Paycheck Lifestyle
The ordinary people are associated with only one business or job, and this is why the salary of Major Portion is spent in the first week of the month and then they wait for the next month's salary. More than one source of income is necessary for the time of today's inflation. Try to create such resources, in which there are less effort and extra income. Warren Buffett handles 5 to 6 businesses in his childhood.
#2. Borrow Wisely
Warren Buffett is against of borrowing more like the credit card, Emis and other types of loans can put you in problems. He said that I have seen many people failing in life due to taking alcohol and borrow. They believe that you do not need to borrow, if you are smart then you will earn a lot of money without borrow.
There are two types of Debt first is good debt and second is bad debt. Good Debt is the perfect way to invest in your future, such as Student Loans, Busine Loan, etc because this will give you benefit in the future and you will also get growth. On the other hand, Bad debt is Which is not beneficial in any way, like if you take expensive phones on the loan or Emi then their value will not increase in the future and you will lose more money from this kind of expenses.
#3. Invest Long Term
We can earn as much money as we can from our investment in one year in 10 years from the same investment. You would be surprised to know that Warren Buffett earned 99% of his wealth after his 50th birthday. On his 50th birthday, he owned $300 million, but after that, his wealth increased to $ 72 billion because most of his investment was long-term. Invest in the long-term because in this lower risks and you will also get fixed returns in the future.
#4. Save from the top & Spend Wisely
He says that it is better to save before expanding from expanding before saving and If you buy things that you do not need then you will soon have to sell the things that you need.
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