There are no better people to hear from about the best personal finance tips than the experts themselves. When it comes to personal finance management, they know which strategies work in order to succeed. Read on to learn about the best personal finance advice from the richest people in the world.
Personal Finance Tips from the Experts
1. Start Small
Chris Reigning became a millionaire at the age of 35 and retired shortly after. His greatest personal finance tip is saving big by starting small. He believes that cutting your daily $5 coffee brings drastic changes in your finances. Accordingly, these small changes will eventually lead you to bigger changes. True enough, Reigning was able to grow his investments through his savings and make more money with it, which made him become financially independent.
2. Skip Luxury Items
Despite being one of the top 10 richest people in the world, Carlos Slim remains as one of the most frugal billionaires. His telecom business earns fluctuating billions, and he could afford to stay in an exclusive mansion, but he prefers staying in the same house he has been living in for more than forty years. He has been living a simple life by forgoing luxuries such as owning private jets and yachts. Instead of spending his fortune, he chose to grow it by diversifying his businesses.
3. Live Below Your Means
Warren Buffett is also known as one of the most frugal billionaires there is. Like Carlos Slim, he also chose to live in the same house he bought for $31,500 back in 1958. Additionally, Buffett still does not own a mobile phone or a computer up to this very modern day. Buffett believes his riches does not affect his quality of life. He said in one of his annual shareholder meetings that life couldn’t be happier and thinks he has everything he needs.
4. Take Your Time with Financial Decisions
When it comes to financial decision-making skills, Stephen Schwarzman believes there is no better way to make an effective financial planning than taking your time with it. If he is under pressure to make one, he tries to postpone it and look for more helpful information. Taking time with any decision greatly helps you overcome biased and emotional decisions which create an impact on your future life.
5. Set Personal Goals
Richard Branson, a British billionaire and founder of the Virgin Group started out with just a list of goals for himself. Even though some of the items on his list weren’t the most realistic ones, he still went for them anyway. Setting financial goals for yourself helps you work harder in order to reach them.
6. Focus on Your Passion
Passion is a great motivator and increases a person’s perseverance and hard work. Mark Zuckerberg is one of the richest people who firmly believe that passion shapes an individual’s purpose. His passion became the reason for his success at a very young age. According to him, it is actually much easier to work on something you truly love doing.
7. Never Stop Learning
Learning continuously is probably what billionaires tell you when you ask them for personal finance tips. Warren Buffett is the most successful investor and yet he prefers hanging out with people he thinks he can learn from. He said that choosing associates that have better behavior than you can easily help you drift in their directions.
Another way to help you succeed is through learning from your mistakes. Even billionaires have made mistakes. Some of them had to take the long and painful route to eventually reach where they are right now. George Soros, Chairman of Soros Fund Management, claims he is rich because he knows exactly when he is wrong. This attitude made him resilient enough, especially when making financial decisions.
These billionaires are just like the most of us, they too started with simple goals. They worked hard to achieve them and grew them beyond what they have imagined. These personal finance tips are what led them to success. You, too, can be just like them. It all starts with the choices you make.
Which of these personal finance tips is your favorite? Share your thoughts in the comments section below.