Warren Buffett’s Personal Finance & Life Tips
Warren Buffett has dispenses more than just investing wisdom.
The quotes below show Buffett’s take on various personal finance and life questions. Who better to take financial advice from than one of the richest people in the world?
Buffett never doubted he would become rich – even at an early age.
“I always knew I was going to be rich. I don’t think I ever doubted it for a minute. ”
The fist several quotes show Warren Buffett’s views on where to work and who to work with.
“People always ask me where they should go to work, and I always tell them to go to work for whom they admire the most.”
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“Never give up searching for the job that you are passionate about”
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“…not doing what we love in the name of greed is very poor management of our lives.”
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“I learned to go into business only with people whom I like, trust, and admire.”
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“In the world of business, the people who are most successful are those who are doing what they love.”
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“There comes a time when you ought to start doing what you want. Take a job that you love. You will jump out of bed in the morning. I think you are out of your mind if you keep taking jobs that you don’t like because you think it will look good on your resume. Isn’t that a little like saving up sex for your old age?”
Your job provides income. That is one half of the personal finance equation. Expenses are the other.
Buffett has famously lived a modest lifestyle despite his tremendous wealth. Part of the reason his wealth has grown to such enormous levels is because he did control his expenses and kept his money invested rather than spent it frivolously.
“I’m not interested in cars and my goal is not to make people envious. Don’t confuse the cost of living with the standard of living.”
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“Do not save what is left after spending; instead spend what is left after saving.”
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“If you buy things you do not need, soon you will have to sell things you need.”
If you are in the habit of overspending, it is critically important to break the habit now.
“Chains of habit are too light to be felt until they are too heavy to be broken.”
Your savings should be invested into great businesses that will compound your wealth. Time in the market is more important than timing the market. The earlier you start investing, the more times you can multiply your wealth.
“By the age of 10, I’d read every book in the Omaha public library about investing, some twice. You need to fill your mind with various competing thoughts and decide which make sense. Then you have to jump in the water – take a small amount of money and do it yourself. Investing on paper is like reading a romance novel vs. doing something else. You’ll soon find out whether you like it. The earlier you start, the better.”
Success is not measured in dollar terms alone. Personal growth is critical no matter how you define success. You have to choose to make yourself better over time to get the most out of life.
“The most important investment you can make is in yourself.”
Investing in yourself means taking care of yourself. Buffett does not drink alcohol or do drugs (other than the caffeine in Coca-Cola).
“Imagine that you had a car and that was the only car you’d have for your entire lifetime. Of course, you’d care for it well, changing the oil more frequently than necessary, driving carefully, etc. Now, consider that you only have one mind and one body. Prepare them for life, care for them. You can enhance your mind over time. A person’s main asset is themselves, so preserve and enhance yourself.”
The amount of time you have on this planet determines how much you can compound your knowledge, skill, and wealth.
“Life is like a snowball. The important thing is finding wet snow and a really long hill. ”
Merely being alive doesn’t mean you are using your time effectively. Time is our most valuable resource, and we must manage it effectively.
“You’ve gotta keep control of your time, and you can’t unless you say no. You can’t let people set your agenda in life.”
Spending your time on your most important tasks will increase your effectiveness many times over throughout your life. Focus on the best, forget the rest.
“The difference between successful people and really successful people is that really successful people say no to almost everything.”
We all say ‘yes’ to some people and some opportunities. Who you say yes to matters. Do your best to partner with people better than you are.
“It’s better to hang out with people better than you. Pick out associates whose behavior is better than yours and you’ll drift in that direction.”
How do you know when someone is serious? When their bank account comes into play.
“Writing a check separates a commitment from a conversation.”
Who we associate with and who we look up to matters. It gives a reflection of who we are and who we are going to be.
“Tell me who your heroes are and I’ll tell you how you’ll turn out to be.”
Who you associate with also has a direct effect on your reputation.
“It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently.”
That’s why it is so important to associate with honest people. The importance of honesty can hardly be overstated.
“Honesty is a very expensive gift, don’t expect it from cheap people.”
If you invest wisely and are lucky enough to enjoy a long life, your mind will naturally turn to your legacy and giving back.
