5 Rules of Warren Buffet

Warren Buffet is known as money magnet and it is because he knows the trick to attract money.  Many of us too want to become money magnet like Warren Buffet, but most of us fail in achieving this.   Today we are going to learn about 5 rules of Warren Buffet. 

First Rule: Say no to all toys.

According to Warren Buffet whatever toys we buy most of them are just waste of money.  Warren Buffet does not like to spend his money on expensive gadgets, expensive cars, etc.  Instead of spending money on all these expensive toys, Warren Buffet would like to invest that money in different types of assets so that his net worth grows.     If you want to be like him then it is necessary for you to say no to those type expensive toys.  If you feel those expensive gadgets are not genuinely necessary for you, then you should avoid spending on expensive mobiles, cars, luxurious house, expensive jewelry.  If you are planning to change your one-year-old mobile just for the sake that new upgraded version of mobiles is available in the market, then you should about it once more.  You should ask yourself if you really need this new mobile and then decide on buying the new mobile.

Second Rule:  Ask for Discount.

According to Warren Buffet, the real price of a product is that which you are ready to pay and what you get is the value of that product.  Every time you buy a product, you should keep in mind that you should get that product at the cheaper price and you get more value from that product.  It should be surprising to you that whenever Warren Buffet buys something, he does not feel shy using discount coupons.  According to his thinking, if you save $1 that means you earn $1. 

Third Rule:  Take your financial decision wisely.

 Many times it happens that when we take decisions related to money, we do not take note of forthcoming pros and cons and due to which we get through lots of trouble.   Warren Buffet thinks that in his success taking decision wisely played a great role.  He says if you want to be successful, then making the right decision is very much necessary, but more important than that is not take wrong decisions, therefore before taking a decision, you should wait and then take the decision.  You should never take a decision based on emotions, as this may lead to making the wrong decision.

Fourth Rule:  Save money and avoid debt.

Once somebody asked Warren Buffer what is the mistake that most of the people make with regards to money and the answer was that many of us don't learn to save money in the younger age and nor we make it a habit, which is one of the biggest mistakes, but they all want to become rich.   He also says that most of the people would like to live their lives on borrowed money or loans eg:  credit card, EMI, holiday, etc.    His simple rule is that never take a loan or use a credit card.  You should first learn to save money and then you should spend it. 

Fifth Rule:  Spend with modesty.

Warren Buffet today also lives in the same house which he bought around 60 years back.    Today he has the capability to buy the most expensive house for himself, but he still lives in his 60-year-old house.    He thinks that instead of spending big money on buying a new house, if he invests it then he can make more money and he can make the world a better place to live.  So see your needs and buy accordingly.