Five Tips from Warren Buffet

Money-wise tips from Warren Buffet

When it comes to money matters, Omaha's one and only Oracle has so much to share. Mastering the art and science of investing, Warren Buffet is indeed someone to look up to.

On Earning: "Never depend on single income. Make investment to create a second source of income." 

It's not enough to have one job. If you want to achieve financial freedom, then, all it takes is hard work and smart work. Work hard enough to save enough money. And when you have enough money, invest it wisely, somewhere that would yield additional income, so that if ever you're old enough to work or you got laid off , you still have a strong financial backup to keep your finances afloat.

On Spending: "If you buy things you do not need, soon you will have to sell things you need."

Always control your spending. If you don't you'll end up digging a hole of debts for yourself. Credit cards, shopping sprees, gambling... they're all expenses that won't add a dime on your coffer. Observe financial restraint right when you have a little and you'll find it a delight when you already have everything.


On Savings: "Do not save whe is left after spending, but spend what is left after saving."

One reason why a lot of people are left without any cash sat aside for emergency or retirement is because they put savings on the least of their priorities. They would allocate budget for fine dining, entertainment or shopping until not a penny is left. Try to make it a habit of putting your savings on top of your budget and you'll see all the difference.

On taking risks: "Never test the depth of river with both feet."

When risking in your investments, don't risk it all. Know your risk tolerance and risk only what you can afford. If you are planning to invest on something, say, the stock market, see to it that you have enough funds to keep your finances afloat even if the market shakes and crumbles.If you are planning to quit your work to build up a business or pursue your passion, make sure you have at least six months' worth of savings for your day to day expenses.

On Investment:"Don not put all your eggs in one basket."Diversify, diversify, diversify. The secret to keeping your financial portfolio growing is putting your money on all possible forms of investments. Don't rely entirely on the stock market, for example. Invest on a mixture of instruments, like bonds, mutual funds, and time deposits to protect your interests against inflaction or some form of financial meltdown.

On Expectations: "Honesty is very expensive gift. Do not expect it from cheap people." That says it all :-)