There are very few people who haven’t heard of Warren Buffett. It is one of the most worshipped names in the field of investment. His experiences and pathways are followed by a large number of people. In fact, he has been known to make the best of profits through investments and is one of the richest men in the world. Anyone who is new to the field of investments can definitely look up to the example of Warren Buffet.
Losing Money is a Sin
This should be your primary commandment and you should keep in mind that come what may, you will not be losing money. This is one of the most popularly followed mantras of Warren Buffet. It simply means that heavy risks are a complete no-no. Until and unless you are sure, you shouldn’t invest.
You yourself are of utmost importance
Do not forget yourself under any circumstances. Invest in yourself as much as you can and you will see that you will get the highest returns out of investing in yourself.
Health is literally Wealth!
Do not make unhealthy financial habits. Having a simple lifestyle can go a long way. Also get into the habit of saving. After all, you can only invest if you save; otherwise it is of no use. The easiest way out of this is to automate the process. So that your money gets either saved or invested by itself in good time.
A large number of people are conventionally against investment of cash. However, during emergencies, this cash comes in handy in a wonderful way. Therefore it is always a good idea to invest cash in hand. Moreover, the risk in this case is almost zero. The only way you will lose it is if something like the partition of India happens again, even then there are chances you won’t. This definitely is the safest and most handy kind of money.
Knowledge and Wisdom go a long way
It is important to understand how money works. After all, the world runs on money and the knowledge of money is obviously going to take you places. Moreover, if you are aware of your actions, you can minimise or cancel out risks. Since you will now know the kind of investment you are making and what the possibilities of you losing all your money are, you can definitely find a way to invest wisely so that the risks are more or less irrelevant.
Think Long Term
Short term investments are going to be of no use. Therefore, invest keeping long term in mind. This is another extremely famous tip of Buffet. In order to make the most of your investment, think long term.
Debts should be avoided at all costs
Do not fall into the debt trap as it is going to set you back. Therefore, do not purchase things on credit card. It is one of the dumbest things to keep using a credit card in Buffet’s opinion. Moreover, credit cards come with very high interest rates and hence, it isn’t wise to use them.