Arguably one of the greatest investors who ever lived, Warren Buffett is the CEO of Berkshire-Hathaway, the third richest person in the world, and an incredibly brilliant business leader. The sage advice that he has to offer on success is nearly as valuable as his company. Here are 5 lessons on life and money from Warren Buffett.
- Do What You’re Passionate About. To do what you love is the greatest luxury. Buffett has gone on record countless times stating that he loves what he does and therefore takes little time off. He feels that his passion for his work allows him to live a life of luxury that anyone can afford. You need not money to live this sort of luxury. You only need to follow what you love.
- Always Think Things Through. A snappy decision without any forethought could close doors and end businesses. According to Buffett, you should be able to justify why you made your decision. If it can’t stand up to that miniscule scrutiny, spend some more thought on it. Be able to give a solid, intelligent reason for committing to the action before you commit.
- Spend Your Money Wisely. Buffett is one of the most frugal men around, spending much of his free time watching sports and eating junk food. Though he has the ability to splurge on expensive houses and fancy cars, he chooses to live modestly. As a result, his savings are now in the billions, despite only having a $100,000 annual salary from Berkshire Hathaway. By following this advice, it is simple to augment savings and meet goals sooner.
- Give Back to Others. Charity is one of the widely agreed upon keys to wealth building and success. They say that you get what you give, so the more you give, the more you get. Mr. Buffett is no exception, pledging most of his fortune to charitable causes upon his death. But you don’t have to give money. Time is of immense value as well, and many charities need it as much as they do money. Give what you can, be it time, talents, or treasure, and see what you get back.
- Live Simply. While the toys all seem fun, they can kill you if you’re not prepared. By spending less than you make and living debt free, you’re paving a way to a strong financial future, both in your business and personally. The further below your means you can stay, the easier it is to make it through tough spots in your life. You don’t need fancy things to succeed or to prove yourself. Wait until you can afford them.
That’s all for this week. Let us know what you think about Mr. Buffett’s advice in the comments below, and have an awesome Tuesday!