Hello friends, I hope everyone is fine. This article lucidly gave a crystal dive into the respective philosophical hold of Warren Buffett relative to life issues and monetary concern. I trust your life will take a real shape after a careful perusal into this article.
Introduction
The philanthropist and business magnate has come a long way in life, given his Incredible achievements and Investment advice to friends and folks in general. However, it is advisable to always follow the footsteps of those who've been to the mountaintop before you.
Odds are that mistakes are inevitable in life but certain gaps could also be minimized if the rightful advice is heeded. Money has been the issue since its inception, most people have maximized its usage while others have not been able to appropriately handle the little at their disposal.
Many folks have life wisdom but lack money mentality. Consequently, this is exactly what this article intends to address as I was inspired after going through different investment and financial advice of Buffet. Let's check on the Intel below.
This could sound funny but it's a word beyond fact. The reality remains that it is difficult to realize lost or stolen money.
Moreover, it's understandable that money is a parameter for determining value, it's also factual that money is more difficult to make than it's been spent. However, the Buffett financial guide stands against irrelevant loss of money since it may be difficult to realize any loss money.
Buffett once said that:
“Price is what you pay; value is what you get.”. Everyone would always love to get satisfied from their consumption of goods or services. It is important to buy things at their cheapest rate than at their peak positions.
For instance, most people who bought BTC during the last bull run when it traded around $69,000 would attest to the value they lost if they were actually affected by the deepening of the market. Nonetheless other investors that are accumulating at these periods of high volatility have virtually nothing to lose. However, this period of low asset prices in cryptocurrency is the underscore to substitute quality for the lowest minimum value.
During Buffett's address to the university of Florida in 2007, he maintained and I quote him:
"Most behavior is habitual, and they say that the chains of habit are too light to be felt until they are too heavy to be broken.”
Nevertheless, a bad money habit will plunge one into financial ruin but prudently keeping to the rules of underscored substance like spending, saving and investing when it's time, will aid in maximizing the spotted potential in our wallets.
Debt accumulation is the worst instance with the potential to drain one's respective earnings and income. No debtor is a free person as both instances reciprocate. It is not advisable to always borrow for everything unless the borrowing is meant to leverage on investment.
However, Buffett warns against credit card borrowing which is very deleterious to our respective income. Credit card borrowing is like a standing order that is permission free so desisting from credit card loans and debt will help in maintaining a good financial status.
Always Have Some Cash For Speculative Purposes.
It is good to hold some cash both as individuals and corporate bodies against unforeseen events like impromptu investments. The need for this is to beat irrelevant bank protocols in meeting with requisite investment demands against missing one in a lifetime opportunity perhaps.
Buffett was quoted in an interview he granted CNBC and I quote:
“Invest in as much of yourself as you can. You are your own biggest asset by far.”
There is no successful person who neglected himself even among the world's billionaires. It is important to always fix oneself before checking for whom to assist although this doesn't call for being self centered but a phenomenon that assures balance in the long run. So invest in yourself and you'll have enough to give to others although there's never a time one may say he'd had enough, given to the economic phenomenon that wants are insatiable.
Nonetheless, understanding one's self will also assist in knowing the mechanics of money and how to appropriately handle your money and also manage risk involved investments.
There is always a vacuum to be filled in society in terms of helping the less privileged and orphans. There's joy and blessing in giving than just watching people die without assistance when it's in one's power to help given to the fact that the tree that gave someone shade was also planted by another. The honest truth about giving is that you mustn't be a billionaire before you could assist people.
However, there are different world billionaires who have been in this train which includes: Bill Gates, Warren Buffett, Dangote, Tony Elumelu etc.
Conclusion
From the layman point of view, it is deduced that money is simultaneously a spirit and a visitor given how it's been handled within those circles. Consequently, a good management of money will keep everyone afloat in the underscored issue.
Finally we should come to the fact that money doesn't respect one's level of academic qualification rather a prudent management of its functions even as emphasized by Warren Buffett. Thank you for going through.
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