Warren Buffet is known as the richest individual in the world. The wealth that is owned is really so abundant that it will not run out of seven generations, you know!
His reputation in the world of investment and business makes his fortune to reach more than US $ 80 billion. Warren Buffett's father, Howard Buffet, is Warren's greatest source of inspiration as an individual.
He instilled good habits in managing money in his children, which required hard work and commitment. Well, just spa, money management tips that Warren Buffet has learned to be successful as it is now?
Here are 5 ways to manage money in the style of Warren Buffet that are worth learning, reported from The Motley Fool. Come on!
1. Saving Money
The first habit of managing money in the style of Warren Buffet is learning to save. Don't save the money that's left after spending your needs and wants, but make it a habit to spend the money that's left after saving.
You can start developing the habit of saving, by saving some of the income you receive (for example, 10%-20%). Then, the rest of the money is free to be used for needs and desires.
2. Avoiding Debt
The next money management tip is to avoid debt. Debts that are not paid off will flower even more, so that it will drain our savings.
If you do have debt, build a habit of paying off debt as quickly as possible.
3. Set aside an Emergency Fund
According to Warren Buffet, an emergency fund will be useful for paying unexpected bills. Without an emergency fund, you will have to pay bills through debt, and debts that are not paid on time are sure to pay off.
Set aside some money from your personal account as an emergency fund for the next 3-6 months.
4. Invest in Yourself
Investing in yourself is also Warren Buffet's money management tips. Warren Buffet suggests taking online courses, or continuing on to higher education.
Investing in yourself aims to develop your career. Because of this, you need to do it too!
5. Changing Lifestyle
Excessive lifestyle will make it difficult for us to manage money. Warren Buffet's lifestyle is quite simple even though he is rich, he still lives in his old house in Omaha, Nebraska. This house was purchased in 1958 for US$31,500.
So you, for those of you who wish to be rich, don't forget to follow Warren Buffer's way of managing finances above, OK!