There are a number of tips and advice you can get on the worldwide web and surprisingly enough, Warren Buffett’s advice stands out. He is a well known investor who is quite credible and you can apply these tips to your financial practices with perfect ease.
This is the best money advice you would ever get if you are adamant about attaining financial freedom.
1) Use what is left after spending
The best money advice out there. Saving has to be a priority and you can’t have it any other way, states Buffett. You should always use what is left after saving; not saving what is left after spending.
For example; when you get your paycheck, you have to immediately subtract the money you intend to save every month. Once you do that, then you can proceed to pay your bills. That way, you are guaranteed each time to save the same amount of money every month. Your savings will steadily increase without any excuses of having to use the money for other ‘urgent’ bills. To ensure this happens, set up your account where a certain amount goes straight to your savings account.
Treat this transaction as you would any pending bill that occurs each month.
2) Being careful about borrowing money
Buffett states that too much borrowing is a bad idea. The best money advice you can get is to stop borrowing money completely. Warren warns that indulging yourself in numerous loans and credit cards is a financial crisis waiting to happen.
Bad debt is the biggest drainer of finances and it financially disables you to grow. The best money advice out there will not guarantee this notion, but im sure it’s close. You want to get loans for things that are going to bring you more money that you can save and even pay off the loan.
He insists that you can make a lot of money in this world without having to borrow any money.
If you are to borrow money, always make sure that it is going towards an investment.
3) Living check by check
Mr. Buffett advises that this is not a good way to live. Living paycheck by paycheck enslaves you to a routine that will never enable you to save any money for a rainy day or for future endeavors. It is easier said than done but that is because you never give yourself a chance to step back and evaluate your financial situation. So of course you keep on doing the same things over and over again.
Mr. Buffett urges that once you adapt the paycheck to paycheck cycle, the following will be your only resort. And guess what? Your ship sinks further and further by:-
- Get a few ‘emergency funds’ from their retirement stash
- Seek out payday Loans
Change your strategy
The only way to get yourself out of that bind is to sit down and make a few changes in your financial budget, so as to increase the possibility of having money left to save. Your bank account should never be left empty after each pay period. The best money advice you can get is by:-
- Eliminate some unnecessary expenses in your life
- Get a cheaper deal for certain products
- Learn a thing or two about things that need to be fixed around the house so that you can do them yourself.
4) Understand your Die hard money habits
This being the other best money advice, it is a tricky situation because you are so used to making the same choices at every given monetary decision. That does not mean that you are making the right decisions.
You have to first single out which money decisions are causing financial havoc in your life and what triggers them.
What makes you want to go and buy expensive cologne or why you feel it is necessary to buy a pair of shoes every two weeks.
Warren says once you identify these impulses, then you can start to have an idea on how to combat them. You can get all the best money advice experts in a room and I’m sure they would agree with this one-or not!
5) Low price does not mean low value
Mr. Buffett has made it clear what he thinks about buying things at expensive prices. He has however, made it very clear that getting products for a low price does not mean that the value is low as well. The best money advice out there is usually given to people as; the more money you pay the better the quality of a product, but Buffett begs to differ.
There are ways you can attain less spending without having to compromise the value of something. You just have to be smart.