Yahoo recently shared the top five tips to build wealth and success from the lives of several wealthy individuals (such as Warren Buffett). Their list:
1. Live Below Your Means. Being wealthy isn't just a product of your salary or investment prowess; it's learning how to save. We can make a lot of money, you can make a little bit of money, but the second you spend all the money is when people get into trouble. Saving is the key to preserving your wealth
2. Bounce Back From Defeat
3. Self-Promote. Regardless of the profession, the rich and successful tend to have a strong sense of self-worth — key to skillfully navigating an upward career path.
4. Have Street Smarts
5. Buy Cheap. The rich can afford to splurge, but that doesn't mean they do.
As you might imagine, I like all of these. My thoughts:
- Living below your means (or spending less than you earn) is my #1 piece of financial advice. And if you don't do it, you're committing the worst financial mistake anyone can make.
- Numbers 2, 3, and 4 all seem to relate to growing and making the most of your career, a subject near and dear to my heart. Your career is your #1 financial asset and if you work at growing it, you can reap millions of dollars in extra income.
- Buying cheap is part of living below your means IMO (it makes living below your means possible.) Anyway, why spend $50 on a shirt when you can get it for $40? Why spend $25,000 on a car when you can get it for $23,000? Why buy a house for $300,000 when a similar one is $250,000? You get the point.
This article is just another example of the fact that financial success can be achieved by knowing and applying a few, simple, basic principles.
I think point 2 is the biggest point. "if at first you don't succeed, try try try again!!"
Posted by: John Diggers | October 11, 2010 at 09:03 AM
I wish everyone would follow the basics above. However, it has to become a way of life, and not everyone is willing to sacrifice. They would rather complain.
Posted by: Everyday Tips | October 11, 2010 at 09:10 AM
WORK,... harder and smarter, typically if you think the 32-40 hour work week and mid-management in the corporate world is the answer it isn't. Find a niche, specialty, open a business, do what you really love and be the best at it! etc., where the potential for MORE $$ is the key. Then, keep the same middle class lifestyle but, now invest & save 50%~ (or more)of your new, high income and retire early, worked for me as I went into business at 32~, made $K~ my first year and never less than $150K to about $500K the 15~ years after and retired at 47. Lived a $50-60K lifestyle (paid cash for everything, even in college as I graduated @ 22 with a double major on Deans list from "state U" in 8 semesters with a positive net worth, 2 old but, paid for cars and never took a student loan, worked part-time during school and fulltime+ or two jobs in summers) since being self-employed paid over $100K+ in Federal taxes but, invested and saved the SAME amount, year after year. Working a 5 1/2 to 6 1/2 day week and long smart productivity WILL pay off.....early...don't blame the govt, economy (I graduated in the steep '82 recession and opened a business in the '92 recession), others, instead look in the mirror and SEE who is responsible for success!
Posted by: JeffinwesternWA | October 11, 2010 at 09:33 AM
excellent post. Indeed, its important to spend less than what you earn. Wish I had leant this when I started working. Anyways, its never too late to start and I am glad that the principle is now serving me well.
Posted by: Saurabh | October 13, 2010 at 08:40 AM