Any POOR person who does this becomes RICH in 6 Months | Warren Buffett

Summary

In this finance-focused video, Warren Buffett shares his insights on developing successful financial habits that can lead to wealth accumulation. He emphasizes the importance of smart spending, understanding investment mechanisms, and working in unusual conditions to foster innovative thinking. Buffett also advises on avoiding common financial pitfalls such as neglecting personal development, misuse of credit cards, and unnecessary expenses. His simple yet profound advice is aimed at guiding viewers towards financial freedom and making wise decisions for long-term prosperity.

Takeaways

• 💼 Warren Buffett emphasizes the importance of good financial habits for wealth accumulation, suggesting that replacing bad money habits with good ones can significantly increase one's wealth.
• 📈 The billionaire investor advocates for smart spending, advising to evaluate purchases in terms of the hours worked to earn that money, which can help in making more informed decisions about spending.
• 🏦 Buffett stresses the need for all income and expenses to be planned and tracked, regardless of the amount earned, to prevent wealth from disappearing unnoticed.
• 💰 He highlights the importance of making money work for you through investments, rather than just saving it, to combat the effects of inflation and to potentially grow wealth.
• 📚 The script underscores the value of continuous learning, especially about investment mechanisms, as a key habit for financial success, as exemplified by Buffett's own daily reading habits.
• 🤔 Buffett encourages thinking from different perspectives, such as working in unusual conditions, to come up with unique solutions and ideas, drawing a parallel to Albert Einstein's creative environment.
• 🛑 The billionaire warns against common financial mistakes that lead to poverty, such as neglecting personal development, misuse of credit cards, and chasing the latest technology without need.
• 👕 He advises simplicity in lifestyle choices, including clothing and technology, to avoid unnecessary expenses that can hinder the path to wealth.
• 🚫 Buffett is known for his prudent approach to financial decisions, including avoiding debt, controlling subscriptions, and being mindful of small expenses.
• 🚗 He also advises against the purchase of new cars as an unnecessary expense, recommending instead the use of used vehicles and careful consideration of long-term maintenance costs.
• 🎰 The script mentions Buffett's stance on avoiding gambling and other short-term wealth options, focusing instead on long-term, thoughtful financial strategies.
• 💡 Finally, the importance of developing human qualities such as patience, discipline, and the ability to say 'no' to almost everything is highlighted as crucial for true wealth and success.

Q & A

What is Warren Buffett's view on habits and their impact on financial success?

Warren Buffett believes that habits, both good and bad, can significantly affect one's financial situation. He emphasizes that while bad money habits can hinder wealth accumulation, they can be replaced with good ones to increase one's financial wealth.

What is Warren Buffett's approach to spending money?

Buffett suggests evaluating future purchases not just in terms of money, but in the number of hours spent earning that money. He advises to calculate the value of an hour of work and compare it to the price of the item desired to make more informed spending decisions.

How does Warren Buffett recommend managing personal finances?

Buffett recommends keeping track of all income and expenses, regardless of the amount earned. He warns that even a large sum like a million dollars can disappear if not properly managed.

What is Warren Buffett's advice on investing money?

Buffett advises that money should be invested to work for you rather than just lying idle. He suggests understanding the investment mechanism and considering different options to ensure that the money at least keeps up with inflation, and ideally grows over time.

How does Warren Buffett view the importance of personal development in relation to wealth?

Buffett believes that personal development is crucial for wealth creation. He suggests that investing in oneself through education and skill enhancement can significantly increase one's income and is the best investment one can make.

What is Warren Buffett's perspective on the use of credit cards?

Buffett sees credit cards as a potential financial pitfall if not managed properly. High interest rates can overshadow any benefits, and he advises to pay off debts on time to avoid financial strain.

How does Warren Buffett approach the idea of working in unusual conditions?

Buffett believes in the value of working in different environments to gain fresh perspectives. He mentions that working in places like McDonald's can help in looking at problems from a different angle and combining ideas from various fields.

What is Warren Buffett's view on the importance of patience in wealth creation?

Buffett emphasizes that patience is key to wealth creation. He states that one does not have to be very smart to make money, but rather one needs to be patient and wait for the right opportunities.

What financial habits does Warren Buffett suggest avoiding?

Buffett suggests avoiding habits like neglecting personal development, using credit cards irresponsibly, chasing the latest technology, spending excessively on eating and drinking out, and splurging on unnecessary clothes and gadgets.

How does Warren Buffett approach the concept of risk in investments?

Buffett advises to minimize risk in investments by not risking what one needs for what one wants. He also emphasizes the importance of understanding the odds of success in any financial decision and focusing on long-term benefits rather than short-term gains.

What is Warren Buffett's advice on saving money?

Buffett recommends saving money by setting up automatic deductions from each paycheck and using tools to track spending. He also advises to save first and then spend what's left, rather than the other way around.

What habits does Warren Buffett believe contribute to financial success?

Buffett believes in habits such as smart spending, investing money wisely, working in unusual conditions, focusing on personal development, avoiding unnecessary debt, and being mindful of small expenses.

Outlines

00:00

💼 Warren Buffett's Financial Habits for Success

This paragraph introduces Warren Buffett's perspective on financial habits that contribute to wealth accumulation. It emphasizes the importance of replacing bad money habits with good ones, as Buffett believes that negative financial habits often go unnoticed but can hinder wealth growth. The paragraph also highlights Buffett's modest lifestyle despite his immense wealth, his early entrepreneurial ventures, and his dedication to continuous learning and reading. The key takeaway is that smart spending, understanding the value of time in relation to money, and investing wisely are foundational habits for financial success.

05:02

🌐 Unconventional Wisdom from Buffett: Global Market Insights from McDonald's

This section discusses Warren Buffett's unique approach to assessing global market situations, often preferring to do so in unconventional settings like McDonald's rather than a traditional office. Buffett's philosophy is that viewing problems from different angles can lead to innovative solutions. The paragraph draws a parallel to Albert Einstein's creative breakthroughs while working at the Swiss patent office. Buffett encourages readers to seek out obscure sources of information and to think independently in order to generate unique ideas and value. Additionally, it touches on common financial mistakes that hinder wealth accumulation, such as neglecting personal development, misuse of credit cards, and unnecessary spending on the latest technology.

10:03

🛍️ Avoiding Financial Pitfalls: Buffett's Advice on Spending and Saving

The third paragraph focuses on financial mistakes that often lead to poverty, such as overspending on luxuries like dining out, clothing, and gym memberships, as well as the pitfalls of subscription services and buying new cars. Warren Buffett's advice is to avoid these unnecessary expenses and to focus on building wealth through wise investment and saving. He advocates for maintaining a simple lifestyle, being cautious with credit, and prioritizing practicality over luxury. The paragraph also underscores the importance of having an emergency fund and the value of keeping cash on hand, as demonstrated by Berkshire Hathaway's practice of holding billions in cash reserves.

15:04

💰 Long-Term Wealth Building: Buffett's Strategies for Financial Success

In the final paragraph, Warren Buffett shares his long-term approach to wealth building, which includes developing healthy financial habits, avoiding unnecessary debt, and focusing on personal development. He stresses the importance of saving money, not losing money, and making decisions that benefit one's life in the long run. Buffett also emphasizes the value of patience, discipline, and continuous learning in managing finances effectively. The paragraph concludes with a reminder that money is not everything and that health, friends, and other life values should not be overlooked in the pursuit of wealth.

Keywords

💡Habits

Habits are regular practices or behaviors that individuals perform often enough to become almost automatic. In the context of the video, habits are emphasized as the building blocks of financial success or failure. Warren Buffett suggests that successful people cultivate habits that are beneficial to their wealth, such as smart spending and investing, while unsuccessful people may not recognize or avoid negative financial habits.

💡Financial Habits

Financial habits refer to the consistent behaviors individuals exhibit in managing their money. The video discusses how positive financial habits, such as saving and investing wisely, can lead to wealth accumulation, whereas negative habits like overspending and ignoring personal development can hinder financial growth.

💡Investment

Investment in the video script pertains to the act of putting money into financial assets, real estate, or businesses with the expectation of generating income or profit. It is a key concept as it illustrates the strategy of making money work for you, rather than just saving it in a bank account.

💡Inflation

Inflation is the rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling. The script mentions inflation to explain why simply saving money in a traditional account is not enough, as the real value of the money can decrease over time.

💡Personal Development

Personal development involves self-improvement activities that increase one's knowledge, skills, and abilities. In the video, Warren Buffett stresses the importance of personal development as the best investment one can make, as it can significantly increase one's earning potential.

💡Credit Cards

Credit cards are a payment instrument that allows consumers to borrow money to pay for goods and services. The script points out that while they can be convenient, they can also lead to financial trouble if not managed properly, due to high interest rates and the potential for overspending.

💡Gambling

Gambling is the act of betting or wagering money, with consciousness of risk and hope of financial gain. The video mentions gambling as a financial mistake that many people make, as it often leads to losing money rather than gaining it.

💡Spending

Spending in the video refers to the act of using money to purchase goods and services. It is highlighted as a financial habit that needs to be managed wisely. Unnecessary spending, especially on luxury items or the latest technology, can deplete one's resources and hinder the path to wealth.

💡Subscription Services

Subscription services are a business model where customers pay a subscription price to have access to a company's goods or services. The script warns about the potential financial pitfalls of subscription services, such as unexpected charges after a free trial period or the cost of unused services.

💡Risk Management

Risk management is the process of identifying, assessing, and controlling risks to minimize or avoid potential harm. In the context of the video, Warren Buffett's advice on investing and financial decisions emphasizes the importance of risk management to ensure long-term financial stability.

💡Patience

Patience in the video is portrayed as a virtue in financial matters, particularly in the context of investing. It suggests that rather than seeking quick gains, one should be patient and focus on long-term strategies that will yield results over time.

💡Wealth Accumulation

Wealth accumulation refers to the process of increasing one's net worth over time through savings, investments, and wise financial decisions. The video's theme revolves around the habits and practices that contribute to wealth accumulation, as exemplified by Warren Buffett's approach to finance.

Highlights

Warren Buffett emphasizes the importance of good habits for financial success, suggesting that bad money habits can be replaced with good ones to increase wealth.

Buffett, despite his immense wealth, lives modestly, demonstrating the value of a simple lifestyle in conjunction with financial wisdom.

From a young age, Buffett was entrepreneurial, selling various items door-to-door, showing the importance of early financial independence.

Buffett's love for reading and continuous learning is highlighted as a key habit contributing to his financial knowledge and success.

The video suggests that timing is crucial in making money, and patience is more important than raw intelligence in the investment world.

Smart spending is presented as a critical habit, with Buffett advising to evaluate purchases based on the hours worked to earn that money.

Investing money wisely, rather than letting it sit in a bank, is recommended to combat inflation and grow wealth.

Buffett encourages learning the basics of investing and staying informed about market trends as a habit for potential investors.

Working in unusual conditions can lead to unique perspectives and innovative ideas, as suggested by Buffett's own habits and historical examples.

Personal development is highlighted as a crucial investment, with Buffett stating that knowledge and skills can significantly increase one's income.

The dangers of credit card debt are outlined, with Buffett recommending reducing or eliminating this form of spending to avoid financial pitfalls.

The pursuit of the latest technology is identified as an unnecessary expense that can hinder wealth accumulation, according to Buffett's advice.

Socializing at home instead of going out is presented as a cost-effective alternative that can save money while maintaining emotional well-being.

Buffett advises against overspending on clothes, especially flashy, inexpensive brands, and promotes simplicity in one's wardrobe.

Unused gym memberships are pointed out as a common yet avoidable expense, with Buffett advocating for more cost-effective ways to stay active.

Subscription services are warned against due to their potential for unexpected charges and the financial drain they can cause over time.

Buying new cars is discouraged by Buffett, who suggests considering used cars and the long-term costs of maintenance as a financially sound alternative.

Gambling is highlighted as a financial mistake that many people make, with Buffett advocating for long-term financial strategies over short-term gains.

Smoking is identified as a costly habit that not only affects health but also significantly drains personal finances.

Buffett stresses the importance of developing healthy financial habits and the discipline to save money before spending it.

The billionaire's advice on never risking what you need for what you want is presented as a fundamental principle for financial stability and success.

Keeping a significant amount of cash on hand is Buffett's strategy for financial security, akin to having oxygen available when needed.

Buffett warns against unnecessary debt and the importance of living within one's means to avoid financial ruin.

Attention to small expenses is highlighted as a key habit of frugal people, with Buffett's own anecdotes illustrating the impact of such habits.

Thinking long-term and patiently building financial strength is Buffett's approach to investing and life, emphasizing the importance of time in achieving success.

Financial literacy is presented as essential for managing money effectively, with Buffett advocating for continuous learning and minimizing risk.

Buffett shares personal insights on the value of non-material things like health and friends, suggesting that success is not solely defined by wealth.

The story of Buffett's bold visit to Geico insurance company is shared as an example of the importance of bravery in seizing opportunities.

Making tough decisions, such as closing unprofitable businesses, is presented as a necessary step towards long-term financial success.

Planning and setting goals before going to bed each night is suggested as a daily habit for achieving financial success and reaching desired heights.

Transcripts

successful people make a habit of what

unsuccessful people don't like to do

Warren Buffett told Bloomberg everyone

lives by their habits some of them

affect your health or personal life but

there are also those that directly

affect your wallet more often than odds

people don't even notice negative

financial habits which time and again

deprive them of any chance of getting

rich Warren Buffett believes that you

can't get rid of bad money habits but

you can easily replace them with good

ones this is the only way to increase

the amount of money in your life so if

you want to find out more keep watching

this video Until the End this is the

main channel on finance click the

Subscribe button now and join the ranks

of future

millionaires Warren Buffett is no

ordinary billionaire he's worth about

$16 billion but he lives rather modestly

he still lives in a house he bought for

$31,000 in 1957 prefers regular

transport to a private Business Jet and

plays Bridge instead of throwing parties

it is this unexpected combination of

immense wealth and a simple life that

draws the world's interest ever since he

was a child Warren Buffett began his

journey to becoming considerably Rich at

a young age he was selling Coke

newspapers magazines and gum by going

door to door to his neighbors I like

being my own boss and that's what

attracted me to print delivery I chose

my own way and no one bothered me at 5:

or 6:00 in the morning he delivered 500

newspapers a day getting a penny each

also one of the planet's top billi iones

had always loved to read his aunt gave

him the World Almanac which he still has

with him and Warren Buffett reads his

first book about investments in his

father's office to this day he devotes 5

to six hours a day to reading despite

the fact the development of Buffett's

business fell on the second half of the

20th century he continues to be active

in the New Millennium besides Warren

tirelessly monitors Trends in the market

and willingly shares some valuable

advice to help people get on the path to

enrichment when it comes to making money

the most important thing is timing you

don't have to be very smart you just

have to have patience says Warren

Buffett many people know Warren Buffett

as a guru of the investment World though

in fact he made most of his fortune

following the right Financial lifestyle

Warren is rightly called a billionaire

who clearly understands the value of

every dollar in this video I want to

draw your attention to the money habits

which Buffett actively uses as he said

in his interview I'm sure some people

will let this information slip past

their ears but Warren states that a

healthy money habit can easily become

the foundation of your wealth even if

your wallet is empty right

now habit one smart spending at first

glance this habit may seem trivial but

according to statistics more than 65% of

people do not know how to spend money

properly Warren Buffett has said it more

than once people tend to think about

where to spend the money they haven't

earned yet says Buffett in this case

Warren advises to evaluate future

purchases not in money but in the number

of hours you spend spend earning that

money ask yourself how many hours a

month do you work and how much money do

you get for it calculate how much one

hour of your work is worth and compare

the calculation to the price of the

thing you want if you make $4,000 but

want to buy a brand new Tesla for at

least $40,000 consider whether it's

worth it maybe before you start saving

up for it it's better to look for

additional sources of income also it's

important to note that Buffett

encourages people to plan for all income

and expenses no matter how much you earn

in spent the problem with a million

dollars is that it's a lot of money you

have to keep track of it or it will just

disappear and you won't even know where

says

Buffett habit number two only money

Works to make some extra money work

rather than just lying in a piggy bank

you need to know how the investment

mechanism works if you just keep your

savings they diminish as inflation

reduces their real purchasing power to

prevent this from happening the money

should at least be transferred to a

savings account the interest on which

outpaces inflation but this is not a

tool for earning money to make money you

need to invest it but to do this you

have to consider different options for

investing and figure out how not to lose

your savings you don't have to invest

your money in stocks tomorrow start by

beginning to understand the mechanism of

investing itself States Buffett take the

time to learn the basics of investing

regularly you can start by watching the

news on the topic every day instead of

scrolling through Facebook or Instagram

in the morning set aside 10 to 20

minutes for some useful reading analyze

what happens to stocks every day by the

way the stock returns of American it

giants like Facebook and Google are 30%

a year isn't it great that social

networks can not only eat up your time

but also bring in a lot of money future

millionaires before I continue I want to

ask you to support this video and give

it a thumbs up after all your activity

can help more people learn about this

useful financial

information habit number three work in

unusual conditions this advice from bu

bu it may seem rather strange although

the billionaire himself is an avid fan

of assessing Global Market situations

while sitting in McDonald's rather than

in his office chair I always associate

money with big problems which in turn

need to be solved to do that you always

have to be able to look at things from a

different angle says Buffett a good

confirmation of his words is the story

connected with Albert Einstein in 1905

Einstein published four scientific

papers that changed the foundations of

modern physics and our understanding of

space time and matter curiously he wrote

them not in a Physics laboratory or his

office but in the Swiss patent office

working in such an environment allowed

him not to get hung up on laboratory

methods when your working conditions are

different from most people in your field

you can draw unexpected conclusions

combine ideas from different fields if

you read what everyone else reads you

will think like everyone else and if you

think like everyone else you will not be

able to come up with anything new or

unique be curious seek out obscure

sources study what no one else has

studied then your work will be truly

valuable to

others Warren Buffett is known for his

simple yet profound Financial wisdom he

believes that people often spend their

money on absolutely stupid and

unnecessary things thus blocking their

path to wealth and by eliminating the

following most common Financial mistakes

you can dramatically change everything

and finally get rich the first thing all

poor people do is neglect personal

development Buffett believes that the

best investment you can make today is to

invest in yourself upgrading your skills

getting a quality education these are

the things that can significantly

increase your income employers are

looking for people with knowledge often

they do not have time to train they want

to find that person who already knows

what to do and such a person is willing

to pay good money and if you want to be

a self-employed person competence in

business and its processes will never be

Superfluous in creating your own

business your Knowledge and Skills are

ask assets that no one can ever take

away from you try to gather as many of

them as you

can using credit cards is the second

mistake that all poor people make sure

credit cards can be convenient and

useful especially when there is a desire

to buy something and your own funds are

not yet sufficient but the interest

rates on credit cards absolutely

overshadow any benefits if you forget to

pay your debts on time just sit down and

calculate how much you can actually

spend in a year to pay off all your

credit card debts I'm sure you'll be

surprised Warren Buffett recommends

cutting out this part of your spending

first you will stop spending more than

you earn and second you will save a nice

amount of money that you can spend on

your education for

example the next expense of a poor

person is the search for the latest

technology new gadgets are always nice

marketing tricks of the modern world

know how to make people want a fresh

product but if you have definitely

decided to take the path of enrichment

start to assess your capabilities and

the need for a new Gadget it is quite

possible that your your old Gadget is

still working perfectly well and does

not need to be replaced so there is no

point in spending money on it Warren

Buffett for example prefers functional

technology if he sees that the product

is practically no different from what he

already has the richest man in the world

will not buy

it visiting bars restaurants and pubs

everybody does it especially poor people

spending on eating and drinking out is

one of the most problematic areas of a

person if you have decided to become

rich you should forget about this kind

of luxury especially at the stage when

you are moving towards Financial Freedom

since we are all human beings

socializing and having fun is an

important part of our social life

replace going out with socializing at

home your emotional well-being won't

suffer but the financial part will be

saved now it's time to splurge on

clothes have you noticed how the richest

people in the world dress most of them

prefer Simplicity in their wardrobe

including Warren Buffett this is

especially true for those who want to

Escape poverty forget about flashy

inexpensive Brands you often pay too

much just to have a famous name on your

T-shirt these are just cloth the stores

are full of Alternatives that are often

just as good as the brand

names unused gym memberships are another

expense for the poor person did you know

that statistically 80% of those who

bought a membership quit the gym now

cheap offers from Fitness networks are

very common they say that you can buy a

season ticket for a year or 6 months at

a very attractive price however in the

end most people stop going to the gym it

seems like you've saved a lot by buying

a cheap membership but you actually lost

money by not using it Buffett encourages

an active lifestyle but warns against

this kind of spending if you were one of

those people who has bought a yearly

subscription and then stopped going

first try to work out for free at home

or in the fresh air or consider a

monthly subscription that requires you

to go to the gym that

month subscription services are also a

poor men's Financial mistake check in

monitor what you subscribe to on a

regular basis very often services that

offer a bargain require you to provide

credit card information so that when the

free trial period ends you are

unexpectedly charged you remember about

the subscription only after the

transaction you promise yourself to

cancel any auto renewals then you forget

again you get charged again and

everything goes in a circle and you get

less and less money that could have gone

to good causes control your

subscriptions if you got something on

sale set a reminder to disable able the

renewal at the end of the sale better

yet do it a day or two in advance as

some services like to write off money in

advance buying new cars according to

Warren Buffett is a serious expense to

avoid cars are notorious for wearing out

quickly the billionaire recommends

looking for used Brands and keeping them

as long as possible and don't forget

that any car needs constant inspection

and repair if you are planning to make

such a serious purchase think about how

you will maintain your car in the future

and before you do think carefully about

whether you need it at all given your

financial situation it is not uncommon

for people to buy such a luxury item

because they want to be comfortable

equal to other people but in fact their

financial situation does not allow for

such an

expense the following Financial mistakes

are the fundamental Poverty of many

people pay close attention to them but

before you do give this video a thumbs

up if you want to achieve impressive

financial success let that thumbs up be

the first but most important step on the

road to wealth and the next mistake is

gambling although it may seem like a

shortcut to increasing wealth Warren

Buffett stresses the importance of

understanding the odds of success in

gambling the billionaire encourages

people to make financial decisions that

will benefit your life in the long run

rather than focusing on short-term

wealth options many people got burned

doing just that we tend to blow large

sums of money hoping to get lucky and

this process can happen over and over

again it is good to be able to stop but

there are also those who get completely

caught up in the excitement know that a

long-term perspective with thoughtful

steps is much more important than making

money here and

now and I won't forget to mention

smoking yes this is exactly what takes

tons of money out of your pocket and

also negatively affects your health I'm

sure you've seen articles about how much

you can save by quitting smoking not to

mention that a simple calculation can

show you a figure of thousands of

dollars which can definitely lead to a

significant increase in your personal

budet

Warren Buffett is known as one of the

greatest investors of all time that

means this is the man who knows what you

need to do to multiply your Capital it

is important to mention that in addition

to practical Financial advice the

billionaire emphasizes important human

qualities that must be developed if you

want to become truly Rich first and

foremost Warren Buffett suggests

developing healthy financial habits

speaking to students Buffett once said

much of our behavior is determined by

habit and it is not for nothing that

they say its chains are too light to

notice at first and too heavy to break

when you finally notice them we would

all like to break some habits but the

most important one we should acquire is

the habit of saving money properly don't

save what's left over after you've spent

it spent it after you've saved it says

waren Buffett to make this painless for

you it's best to set up an automatic

deduction of a small amount from each of

your pay checks and use programs that

show you the percentage of your monthly

spending on different product categories

never lose money rule number one never

lose money rule number two never forget

rule number one it's a strange

recommendation after all there's hardly

anyone who thinks losing money is a good

idea but it is not that simple it is

very wise and practical advice to avoid

risk as much as possible to be

successful and live happily never risk

what you need for what you want says the

billionaire Warren Buffett himself

followed this Rule and never made risky

Investments he said the difference

between successful people and the truly

successful is that the truly successful

say no to almost

everything don't keep all your money in

an account keep some in cash another

unexpected suggestion considering that

Buffett's Fortune is estimated to be $15

billion as of 2023 his company birkshire

Hathaway always has about $20 billion in

cash ready to be given away at any time

this seems unreasonable and goes against

the General principle of Finance years

to invest money and not keep it under

the pillow and he loses a lot if that

money isn't invested in some project and

doesn't make a profit but that's what

saved Warren's company during the 2008

crisis as Buffett says cash to a

business Is Like Oxygen to the body you

never think about it when you have it

and you only think about it when you

don't have it dollars are somehow more

trustworthy than checks it's especially

important for those with inconsistent

income to follow this

rule borrow wisely Buffett warns against

taking on unnecessary debt credit cards

installment loans mortgages all will

lead to the day when your loan payments

exceed your expenses and there will be

no turning back I have seen many people

fail because of alcohol but I've also

seen just as many people go bankrupt

because of an excessive craving for

credit if you're smart you can make

money without

credit pay attention to small expenses

Buffett always pays attention into small

expenses and trusts only frugal people

for example he bought a company whose

owner counted rolls of toilet paper to

see if he was being cheated the most

interesting case that reflects the

Billionaire's attention to small

expenses took place in China there

Warren Buffett and Bill Gates decided to

go to the local McDonald's for a snack

Buffett insisted on paying the bill

himself to everyone's surprise he pulled

out discount coupons he had brought with

him from America to partially pay for

the meal and save

money think in terms of a decade not a

month most people make the same mistake

of trying to make the most of the

present moment don't chase the quick Bob

concentrate on building your strength

and confidence gradually over a lifetime

Warren Buffett advised successful

investing requires time discipline and

patience it doesn't matter how talented

you are or how hard you work some things

just take time you can have a baby in a

month by impregnating nine women Buffett

said think in terms of decades gradually

accumulating the needed for your

children's education or your

retirement read all you can about

finances go to bed at night smarter than

you woke up in the morning Buffett said

a big part of my job as an investor is

to minimize risk and cut costs and what

is the risk to an average person not a

finance year it's when you don't know

what you're doing the more you learn

about money and the laws of money the

greater your financial literacy the

better you can manage your money and

know how to make the most of it no

matter how much you

have money isn't everything some

material things have made my life

happier but if you get a lot of them it

will do the opposite Warren Buffett once

said the billionaire says he wouldn't

give up a plane but half a dozen houses

is a problem in his opinion it often

happens that a large number of

possessions begin to own the owner

himself therefore do not forget about

other no less important values for

example Health without it success is

impossible a according to Buffett the

same is true for friends the billionaire

considers his friends to be the most

important thing after

Health be brave in 1951 when Warren

Buffett was not even 21 years old he

took a train to Washington DC and

knocked on the door of the headquarters

of Geico insurance company where

Benjamin Graham his future Mentor worked

Buffett's bold appearance in Graham's

office led to Graham giving the young

man a 4-Hour lecture on the insurance

industry Graham would go on to become

the CEO of Geico and Buffett would

remain associated with the company for

years to come today Burkshire owns Geo

and berkshire's insurance interests are

what Buffett calls one of the company's

crown jewels if Buffett hadn't dared to

show up at Geico that day 72 years ago

none of this would have happened but

boldness pays

off make tough decisions initially

birkshire Hathway's primary Market was

textile mills Buffett supported them for

many years but in 1985 he sold the Mills

because the business was no longer

profitable it was a difficult decision

for Warren but one that was important

for future success these situations are

common in life for example it is more

profitable to give up an expensive

vacation and invest in a retirement

fund the road to financial success for

every rich person is paved before they

go to sleep virtually all poor people

will not do this it is about planning

every night before you go to bed write

down a list of the most important things

that need to be done in the morning to

get closer to your desired Heights every

evening analyze the way you have done

for the day draw conclusions adjust your

direction write down the tasks go to bed

and in the morning in your head and on a

sheet of paper you will have a road map

a readymade plan fulfilling which you

are waiting for indestructible success

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