Warren Buffet’s Advice to be financially healthy
We begin this New Year with dampened enthusiasm and dented optimism. Our happiness is diluted and our peace is threatened by the financial illness that has infected our families, organizations and nations. Everyone is desperate to find a remedy that will cure their financial illness and help them recover their financial health. They expect financial experts to provide them with remedies, forgetting the fact that it is these experts who created this financial mess. Every new year, I adopt a couple of old maxims as my beacons to guide my future. This self-prescribed therapy has ensured that with each passing year, I grow wiser and not older. This year, I invite you to tap into the financial wisdom of our elders along with me and become financially wiser.
Hard Work: All hardwork bring a profit, but mere talk leads only to poverty
Laziness: A sleeping lobster is carried away by the water current
Earnings : Never depend on a single source of income. (At least make your investments get your second earning)
Spending: If you buy things you don’t need, you’ll soon sell things you need.
Savings: Don’t save what is left after spending. Spend what is left after saving
Borrowings: The borrower becomes the lender’s slave.
Accounting: It’s no use carrying an umbrella if your shoes is leaking
Auditing: Beware of little expenses. A small leak can sink a large ship.
Risk Taking: Never test the depth of the river with both feet. (Have an alternative plan ready)
Investment: Don’t put all your eggs in one basket.
I’m certain that those who have already been practicing these principles remain financially healthy. I’m equally confident that those who resolve to start practicing these principles will quickly regain their financial health and become wise and lead a happy, healthy, prosperous and peaceful life.
