WARREN BUFFET: Words of Wisdom from Mr. WARREN BUFFET

I want to be like him..

Do you know him? Well, Warren Buffet used to be the richest man in the world until he donated part of his earnings to charity. 

We learned a lot in school, unfortunately, we were not taught how on how to manage our funds once we started working. So we end up spending all of our hard earned money and eventually realize that we have wasted the time and money we spent.

1. Never depend on a single income

We should always grab the opportunities that are given to us. Accumulate as much as you can, as soon as you can then invest it. This would certainly become our of our big assets once we grow old and you will definitely look back and tell yourself, "I did a good job."

2. Do not live beyond your means

Yes, it is boosts our confidence especially when everyone appreciate us. We are happy when we have the latest gadgets. We are happy when we get to go to places where our friends did not see yet. We are happy until the time we realize that we are in need of money for our kid's tuition or our parent's hospitalization. Most of us were not born with a golden spoon in our mouth but our children may become one of them.

3. Do not save what is left

Well, you can cheat on this rule at times. There are emergency cases wherein we have to spend a lot and we could only save a small part of our salary. As much as possible, stick to how much money you are planning to save each month,

4. Never test the depth of a river with both feet

This is true and avoid it unless you know how to swim. Always see to it that you know something about the investment tool that you are going to use. By the way, we have different risk appetites and some people are able to endure losing more money than others can.

5. Do not put all eggs in one basket

Why? So if one basket basket happens to fall down, you will not break all your eggs. Try do diversify the investments that you will make. There are several types of investments other than stocks and mutual funds.

6. Honesty is a very expensive gift

This is the reason why you have to study and put effort when entering into investments. You have to trust yourself and stick to your plan. Beware of those self-proclaimed mentors or groups because chances are they are holding the stocks that they will be advising you to buy. Caveat!