Warren Buffett is one of the most quoted man in the world and for a reason. Many of his quotes are great advice on how to grow your wealth. Here is a collection of his quotes that we feel best represents Warren Buffett’s best personal finance advice.
Never Lose Money. Warren Buffett’s No. 1 piece of advice for 2016 is one he follows as closely as he can: “Rule No. 1: Never lose money. Rule No. 2: Never forget rule No. 1.” When you suffer a loss, it is often difficult to regain your momentum because of the mental blow. Often, one bad decision leads to another bad decision.
Get High Value at a Low Price. “Never lose money” works better when paired with another Buffett principle: “Price is what you pay; value is what you get,” which Buffett wrote in the 2008 Berkshire Hathaway shareholder letter. Losing money happens when the price you pay doesn’t match the value you’re getting — like when you’re paying high interest on credit card debt or spending money on items you’ll rarely use.
Form Healthy Money Habits. “I think the biggest mistake is not learning the habits of saving properly early in your life because saving is a habit”, Buffett said. Pay attention to your money habits - work to strengthen those that help your finances and break the ones that hurt your finances.
Keep Cash On Hand. Businesses and individuals alike might get an itch to put liquid cash to work through investments. “Cash, though, is to a business as oxygen is to an individual: never thought about when it is present, the only thing in mind when it is absent,” Buffett said. “When bills come due, only cash is legal tender,” he continued. “Don’t leave home without it.”
Invest in Yourself. “Invest in as much of yourself as you can. You are your own biggest asset by far,” Buffett said, according to Inc.com. He echoed those sentiments in a CNBC interview when he said, “Anything you do to improve your own talents and make yourself more valuable will get paid off in terms of appropriate real purchasing power.” Those returns are big, too. “Anything you invest in yourself, you get back ten-fold,” Buffett said. And unlike other assets and investments, “nobody can tax it away; they can’t steal it from you.
Learn About Money. The lesson from this Buffett quote, then, is to actively educate yourself about personal finance. As Buffett’s partner, Charlie Munger, put it, “Go to bed smarter than when you wake up.” Buffett’s formula for this is simple: Read a lot. “That’s how knowledge builds up, like compound interest,” he said, according to The Week
Give Back. “If you’re in the luckiest 1 percent of humanity, you owe it to the rest of humanity to think about the other 99 percent,” Buffett said at a 2007 political fundraiser for Hillary Clinton. And as a top member of that 1 percent himself, Buffett makes it a point to put his money where his mouth is.
This past July, Buffett donated $2.8 billion in Berkshire Hathaway stock to five charities. He is also a founder of The Giving Pledge — along with Bill Gates — which is a promise that more than 130 billionaires so far have made to give their fortunes away. While you might not be a billionaire, you can still enrich your life and others’ by giving back.
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