People do not often ask billionaires for personal finance tips. After all, not many of us can think about money the same way they do. Regular people are trying to stretch their paycheck every month just to cover all the expenses. However, wealthy people have great advice to share with the rest of us. Here are some of the tips which you too can apply to your financial situation.
Carlos Slim Helú used to top charts of the wealthiest people in the world. Afterward, Bill Gates took over the title again. Nevertheless, he has a valuable tip for all of us who need a bit of support. Slim maintains that it is better to start early or start immediately. Once you begin managing your savings and income, you will have more time to amass your wealth. In addition, you’ll also make fewer mistakes along the way. He started with a few shares at age 12, and by his teenage years, he was earning 200 pesos per week at his father’s company.
Be passionate about it
Changing your financial situation takes time. Furthermore, you also have to believe in yourself. Otherwise, you might end up somewhere where you never wanted to be. Oprah Winfrey is an example of a businesswoman who thought that she could – and then she actually did it. That is the first step towards a better life and wealth – believe in yourself.
Apart from that, you should try to find what makes you passionate about life. It doesn’t matter if it’s sewing, or saving animals.
One person who appreciates what he does is Christopher Paul Gardner. When people ask him to tell them his secret, he has a rather simple answer. He says that a person should do something that he loves. If he is passionate about his job or business, then he will enjoy doing it every day, for the rest of his life.
Don’t make it too complicated
Warren Buffett made his fortune by investing in companies that have a stable annual cash flow. He didn’t risk it with businesses that might go down due to technical obsolescence.
It might not be the most interesting method of investing, but it worked for him. Therefore, whatever you have in your bank account, use it well. Stick to the fundamentals because they will eventually pay off.
Keep your life simple
This next tip might be similar to the previous one, but it still holds a great amount of value. Warren Buffett is, again, a great example. He still lives in the same house in Omaha which he bought for $31,500. Today, that house is worth just a fraction of the price, but he is comfortable there. The aim is to stop wanting things you don’t need. They will only make you financially unstable, and less successful.
Don’t underestimate public transport
Public transportation is an everyday thing for the rest of us. But, even billionaires like John Caudwell, David Cheriton, and Chuck Feeney use it. Not only are they saving their money, but it is also more environmentally friendly. They are not ashamed to ride a bike or walk to work – so why should you be?
You don’t need expensive cars
If you love cars and are desperate to buy one you have been eyeing for some time now, then go ahead. But, make sure you are staying within your financial limit. Many billionaires still use their older cars to get from point A to point B. Ikea founder drives a Volvo, while Walmart owner still uses his old pickup truck. Just because you can afford it, it doesn’t mean that it is a necessity. Therefore, keep your needs and wants separate, and save your hard-earned money.
Billionaires are still wealthy because they use these tips. When you have that amount of money, it is rather easy to go on a spending spree and forget about your future.
However, you will improve your financial situation if you follow their advice. Many of them started with little to no money at all – and look at them now.
Money is there to help you make the rest of your life more enjoyable. Therefore, find and do what you love, invest smartly and make your money work for you.