E-mail :

Password :

Forgot Password? | Sign up for Free

4 Personal Finance Tips from the Extremely Wealthy

Posted by : Premraj | Posted on : Tuesday, November 14, 2017

savings
SHARE THIS
FACEBOOK

Managing your personal finances is hardly enjoyable, but doing it properly can make the difference between a lifetime of debt and a lifetime of comfortable living. If you compare two people with similar skillsets, the same education level, and similar expenses, it is perfectly possible for one to be drowning in debt and one to have a hefty retirement account. It all comes down to how you manage those personal finances.

So if you’re looking for a few lessons in personal finance, why not look to the most financially successful people in the world? Here are 4 personal finance tips from people who have clearly figured out the secrets to financial success.

Cultivate Your Rare, Valuable Skills

Mankind has long had an obsession with scarcity. The rarer an item is, the more value it tends to have. The price of gold, for example, rises and falls with its availability. So, if you want to increase your income, focus on cultivating your rarest, most valuable skills. As multi-millionaire Tai Lopez explains, professional athletes make millions of dollars a year because their skills are extremely difficult to come by. And, while what a teacher does adds more value to society, the ability to teach is much more common and, therefore, pays a whole lot less.

Money is almost always attached to rarity, so decide what your most valuable, rarest skills are and decide if you can market that in some way. It may be a creative skill, a technical skill, or an intellectual skill, but everybody has something exceptional to offer. Find what your rare skill is, and cultivate it to turn it into your main source of income.

Focus on Finances Early

When did you first start thinking about saving and investing? Probably not until after college. Up until that point, most people seem to be focused on just making ends meet. But the true financial successes are the people who start early.

As an example, consider Carlos “Slim” Helú, who was ranked as the richest person in the world for several years. Slim began buying shares in a Mexican bank at the fresh young age of 12, and earned 200 pesos a week working for his father’s business when he was a teenager.

Of course, if you’re already in your 40s and struggling financially, this might feel like somewhat useless advice. But in such a case, you can alter the advice slightly to be “start now.” Even if you have little income to spare, focus on saving and investing as much income as you can. Just putting a few dollars away every month can add up quickly.

Simplify Your Life

We life in a consumer society, and are constantly bombarded with advertisements enticing us to buy the newest, shiniest version of one thing or another. But the best thing you can do for yourself financially is to ignore those screaming advertising voices and focus on the basics. For example, billionaire Warren Buffet has lived in the same house since 1957—a house he bought for just $31,500

John Caudwell, David Cheriton, and Chuck Feeney (all three of them billionaires as well), all walk, ride bikes, or take public transportation every day. While they could afford to buy the flashiest, most expensive cars on the market, and Warren Buffet could certainly get himself a mansion in downtown New York, they’ve simplified their lives in ways that allow them to put their money in smart investments instead of physical things.

Focus on the Long Run

You don’t have to game the system or make fast money in the stock market to be financially successful. Warren Buffet, for example, spent the early part of his career investing in insurance companies. It wasn’t a “hot” investment at the time, and he didn’t make a million dollars overnight. But it they were smart investments in companies with consistent annual cash flow.

This applies to your personal finances as well, whether investing it or not. Focus on financial choices that are going to yield long-term benefits instead of short-term gratification.

These tips may not make you a millionaire, but they can guide you on the path to a more secure financial future.

Comments : Post a Comment | Category : Money Advice | Tags :
Business in Budget

Understandably, startups can be packed full of enthusiasm and aspirations. However, as a young business steps out to boldly tackle their chosen market, often the company can get a bit too ahead of itself. It’s a hard truth, but to begin with startups simply need to survive their first few years. Cost considerations are key [...]

Read More >>

tech solution

Small businesses have a lot to grapple with, particularly where their money is concerned. Unlike major multinationals, who have a team of in-house accountants and administrators, SMEs usually have to look for more cost-effective ways to manage their finances. In terms of accessing money, life tends to be harder for small businesses. For SMEs in [...]

Read More >>

Small business in budget

Business is all about innovation, creating great products or services, making people’s lives better, and providing the market what it wants and needs, isn’t it? Granted, all these things are important. However, in the end, it’s all about profit. Not because business owners are selfish and money-oriented, but simply because a business that doesn’t make [...]

Read More >>

Buy cell Phone

Becoming a full-time app developer takes time, but with the right strategy you can make it your living and call yourself a professional. Everything you need is out there, it’s just a matter of staying focused until you achieve your goal. Master The Basics. The first step is to get a good grounding in the [...]

Read More >>

Security system

Living in a safe neighborhood or in a quiet area doesn’t protect you from home burglary. In reality, taking a passive approach to home security and neglecting your own safety actually increases your odds of getting robbed. According to data from Alarms.org, homes without a security system are 300 percent more likely to be burglarized. [...]

Read More >>

Business in Budget

There are many considerations to make when establishing a startup, but one of the most important is the matter of funding and expenses. Many businesses fail because they don’t accurately estimate their costs and to put it simply, they run out of money. Don’t let your startup fall under that category – make sure you’re [...]

Read More >>

Payday Loans

The Fundamental truth of any business is they need money to keep expanding. It doesn’t matter if they are a startup, or a liability corporation, you will need financial help to get yourself on your feet. But before you apply for a cash loan, you need to consider the following pointers! Accounts Receivable Asset-based lending [...]

Read More >>

house on calc

You love your house, but you know it will eventually need to be sold.  If you are aware of this, you should also know that renovation projects now can still generate value for your home years down the line. When you do renovation projects, you want to make sure you are adding value to your [...]

Read More >>

trading

Many investors enjoy buying and trading penny stocks simply because it costs a lot less to buy large chunks of stocks. There is something very appealing about owning hundreds or thousands of penny stocks in a company that is about to take off, such as Apple did years ago. You can easily feel like a [...]

Read More >>

Buying New Car and Save Extra Bucks

Have you made late payments on your bills? Perhaps you are engulfed in high debts and bankruptcy and you could not keep up with the payments. Or maybe you have had to max up your credit card, thus damaging your credit score. Dealing with a bad credit can lead to high levels of stress and [...]

Read More >>

Free Budgeting software to better manage your money

Register for FREE, Learn More or Watch the Video