YahooFinance.com recently published 5 tips to build wealth and success. Now, I don’t know that you could really say such tips will make you successful. What does that mean, anyway? I think the definition of success is different to a lot of people. But one thing I do know, building wealth, or increasing your net worth requires a lot of good financial stewardship. For instance, if you spend all your money and never save or invest, you’ll have nothing to show for it.
Overall, YahooFinance provides some pretty good tips that even Warren Buffett has followed such as living below your means. Mr. Buffett, worth $45 billion, does more than top notch investing. I didn’t realize he lives in the same home he bought in 1958! Now that’s good money management!
Here are my thoughts on why Warren Buffett is successful and how we can be too (I’m interested to hear what you think too):
Live Below Your Means.
I certainly would agree with this one and Mr. Buffett does too! Some people who make several hundred thousand dollars a year feel like they’re poor each month. They can hardly find extra money to do anything. Someone with twice as little in income may have more money simply because they live below their means and don’t spend everything they earn. Living below your means, as the article points out, is also about saving for the future. Who wants to look up 10 years later and see absolutely no increase in wealth? Not me!
Bounce Back From Defeat.
I point well made is to bounce back after something doesn’t go your way. The give up attitude has to go if you want to be successful in your work. I didn’t realize Michael Jordan was cut from his high school basketball team, as mentioned in the article. Now, that’s a great example of someone who didn’t give up.
Have Street Smarts.
You’ll always find people interested in what you’re doing and how you’re making money. This is the nature of the world. The article provides some great advice in that you have to just learn to say no. Say no a lot and study hard before saying yes. Especially, when it comes to investing your money or purchasing financial products. I would imagine people like Mr. Buffet have had to say no a lot!
This has been one of Warren’s keys to investing success. It’s important to be a savvy shopper even if you have the money to spend more. I’m proud to admit our family regularly shops consignment. We have also bought used items at garage sales and Craigslist. Use the same principles on a larger scale too when it comes to buying real estate and investments. Buy when things are low in price. Of course, this means you have to live below your means so you can save and have the cash to spend when the time is right. I’d be willing to bet the recent economic crisis produced a lot of wealthy people because they were positioned to buy when the price was right.
I don’t think you can build wealth unless you’re willing to put forth the extra effort. At the same time, I don’t think we should let work get the best of us, but I do like the idea of working extra from time to time when I know others may be resting.
What about you? What do you think about these tips for success? Would you add any others to this list?