Warren Buffett Lists Ten Ways to Get Rich

In a recent edition of Parade Magazine, Warren Buffett listed ten ways to get rich. Here are the tips I especially liked:

1. Reinvest your profits.

2. Be willing to be different. Don’t base your decisions upon what everyone is saying or doing.

5. Watch small expenses.

6. Limit what you borrow. His advice: Negotiate with creditors to pay what you can. Then, when you’re debt-free, work on saving some money that you can use to invest.

10. Know what success really means. "When you get to my age, you'll measure your success in life by how many of the people you want to have love you actually do love you. That's the ultimate test of how you've lived your life."

Here's my take on each of these:

1. Reinvest your profits. I do this on all my investments -- I reinvest profits (if I sell, which I don't do often) as well as dividends (which I have automatically reinvested.)

2. Be willing to be different. In other words, be willing to go against the flow. Especially the flow of what the media is saying.

5. Watch small expenses. I watch ALL expenses (I know Buffett does too.)

6. Limit what you borrow. Did he say debt-free? Here's another reason to love this guy!!!!

10. Know what success really means. I try to keep money in perspective as well. That's why I have a category here titled More Important than Money -- because there are many things more important than money.

The best advice he's given me is to use index funds. Buffett believes in them so much that he's even bet on them to beat a hedge fund.

Finally, here's a link in case you want to see how I suggest getting rich in only three steps.

Comments

[Mr. Budget Wise]

Great List! Who better to do it than the genius of finance himself Mr. Warren Buffet. I especially like Re-investing profits. Knowing when to quit. And Measuring Success by the people who actually do Love You.

[Mo Money]

I love to read about this man. He has so much wisdom to glean from. I especially like number 10.