Top Personal Finance and Investment Tips By Warren Buffet
Warren Buffet remains the world’s richest man and even if someone else were to take his place, his long-term standing as the richest man alive and the long-term investor of all times leaves everyone wishing they knew what the man knows. It is because of the hunger for wealth creation and investment in solid projects that his books are on the list of the most popular financial books of all time.
Even the leaders of the best PR firms in Toronto pride themselves in reading his books and reaping from implementing his tips. So, whether you are looking for personal finance or investment advice, you are in the right place as this article highlights the top tips for your success.
Be a forward thinker
When it comes to personal finance – saving, investment, or spending, you have to think ahead. To be a long-term investor, you have to look at the big picture. You need to look at an investment and know how those stocks will trade five years from now, not one year from the date if investment. You should go only by stocks if the prospects look promising five or ten years from today.
This applies to your personal spending and general control over your finances. You should budget and save more now to save you on a rainy day.
You need an emergency fund
An emergency fund doesn’t just mean having money set aside for when you lose your job, and you have no money coming in. An emergency fund also refers to the money you set aside and use when you come across good deals. With an emergency fund, you won’t go homeless, get money from a place you shouldn’t or miss out on a good deal. You don’t have to have billions in your emergency account, but, you must have some money in that fund.
Invest in yourself first
It feels good to have a billion dollars in your bank account, doesn’t it? Unfortunately, the bank shouldn’t be the only place you look at when you think of investing. Therefore, it is important to invest in your talents and abilities first. Your innate abilities are often responsible for your financial success. Making yourself a better person is as simple as reading a few pages of a book daily.
Diversification isn’t always the best thing
Many investors encourage diversification. However, if going by Warren Buffet’s advice means something to you, note that diversification isn’t always the right move.
Any experienced investor you find, one who is doing well will tell you that their investments aren’t diversified by tied one area. While it is true that diversification helps you when one investment tanks, it only translates to more work. You will have to keep track of many accounts and events that impact all those sectors of the economy.
Make investments you understand
It doesn’t matter if real estate is doing well if you don’t understand real estate, look for an investment opportunity in an area you understand.
Finally, you should be patient and, also, learn from your mistakes and move on.