1. Be mindful and learn how to save
Although it can be difficult sometimes, Buffet says some of the greatest success, stability, and force of habit in saving money can not only be used as funding for emergencies, but can serve other purposes as well.
For example, savings can be later spent on investing into something better, be it stocks, goods, or even a small business, and in turn can bring you a continuous flow of money or revenue in the long-run.
Buffet points out that just as bad habits are formed, good habits can be formed in due time as well, given the right levels of patience and commitment.
2. Avoid credit cards and loans like the plague
Warren Buffet at a Notre Dame speech in the late 1990’s preached to students about the importance of avoiding credit card debt, borrowing, and loans when applicable. He points out not only how incredibly high interest rates can be – 18% to 22% or more – but also added that this type of credit (debt) can follow you around, haunt you, and reduce or make it nearly impossible to make profits and savings over the years.
Even Buffet himself has publicly said that had he utilized credit cards and high interest-rate loans that he would have nowhere near the amount of profits and money he has put away today.
Buffet encourages people to be creative, and innovative; with new business ideas, technology, or inventions and to rely on these – if possible along with education or experience – to both bring profit and “self-made credit” along the way.
3. Don’t conform to society’s ways
Warren Buffet has personally pointed out how starting back in the 80’s with little more than one hundred thousand dollars that in order to invest “smart” and make a difference that it’s necessary to ‘think outside the box’ and not necessarily always bandwagon along with whatever the top leading trends, stocks, or brands are that day.
Buffet encourages the consideration and use of an “Inner Scorecard”, which is essentially your own educated and experienced outlook on a possibly profitable product or investment, and to weigh out the pros and cons yourself as opposed to relying on what everyone else thinks or is doing.
4. Avoid “sucking your thumb”
As Warren Buffet put it, avoid “thumb-sucking” or procrastinating when it comes to considering an investment. He personally has stated that procrastinating can be absolutely toxic when it comes to business acquisition, consideration, and development – or “deal-making”.
He points how all too many businessmen make this mistake every day, including young entrepreneurs alike, and hesitation can be fatal to a good business deal or even worse bring it down a negative path, in turn leading your prospect to someone else.
Ultimately, as Buffet even admits himself, have a figure in mind before presenting a proposal, regardless of what side you’re on – because Buffet does, and if you want to make the millions or billions, then you want to think like the million and billionaires.
5. Agree on the Deal before you make it
Learning it from a young age, Buffet points out how even a deal with a loved one or friend can go wrong in the simplest of deals. Always have the agreement or pay agreed on before starting a job or project – and when possible get payment up front. Buffet points at it more so being practicality than it is money-driven.
6. Understand when ‘enough is enough’
Buffet points out how critical it is to understand and train yourself to acknowledge when a bet is simply not in your favor, is unrealistic, or has a higher cost than benefits ratio.
At a young age Buffet once lost over a weeks’ worth of earning on one race-track bet, only to lean on another bet to try to recoup the funds for the previous. Needless to say, it did not work. This does not only apply for business, but is a prime example of how and why gambling can be so detrimental, and an otherwise unrealistic way to “get rich quick”.
7. Create a “Plan of Action”
as one of the most successful billionaires in the world, Buffet points out how important it is to outline and understand your goals. Not just how to list them, but also include how you’re going to go about achieving them.
Buffet points out the value of writing down, considering, and updating or checking your progress on personal and professional goals every few weeks. Doing so not only increases the likelihood of success, but also helps to teach one’s self a stronger self of accountability – which in turn is essential to obtaining wealth. It also gives someone the ability to cross-analyze themselves, their life, and where they’re likely headed.
8. Know when to accept feedback
Buffet outlined in his publishing’s and interviews several times how important it is and was for him to heed advice from more experienced wealth-driven individuals. He shares how he neglected to do so starting at a young age. Buffet noted clearly that had he begun taking advice and feedback from those whom were more experienced and just trying to help him along the way that he likely would have experienced the riches that he does now much earlier on in life.
9. YOU are your greatest investment and asset
Buffet points out how literal you are to your own investments, worth, and potentially profitable future. How you teach and train yourself dictates what you know, how you know it, and what you’re capable of.
Strengthening your skills from as many angles as possible, from learning multiple languages, to understanding United States law, the more knowledgeable you are, the more likely you will be able to not only “sell yourself”, but also be equipped to turn profit and stand out from the competition.
10. Counting success by numbers
Last but not least, as surprising as it might sound, Buffet expresses not to let solely money run your life, be your drive, or purpose for living.
Buffet himself has indicated he will be donating nearly all of his billions to non-profit organizations and charities in the near future.
In reality, while “making millions” (or billions in his case) may have seemed like a challenge to himself or a way to ‘win’ the global “rat race”, in reality he points out that true riches comes in numbers of those who love, respect, and appreciate you, not in the amount of money you have in your bank (Easy for you to say Buffet!).
But no really, all the wealth in the world can’t buy true friendships, love, or a sense of purpose (for the most part), so consider your goals or aspirations, why, and what you truly expect to get out of them before you do.