Finance Advice | Accounting Services
Finance Advice From Some Of The Smartest People Alive
July 18 2018
When you experience financial difficulties, it can be difficult to take listening advice from billionaires or even smart people in general. But some very wealthy people started from very humble backgrounds and in some cases, were homeless. Whatever your financial situation, you can improve it, and these finance tips offered by successful individuals can make sense in just about any situation.
It can feel like there’s an overwhelming amount of money advice to sort through with all of the resources available today. To help you separate out the signal from the noise, here are some of the smartest things self-made, successful individuals had to say about saving, investing, earning and growing your wealth.
Here they are …
“Find joy in saving money: The key to saving money is to find the same kind of pleasure you get from spending when you save. Saving money should never feel like “a downer,” It should be satisfying. You should even like doing it. The question shouldn’t be, “When can you start enjoying your money that you saved?”. My question back to you is, ‘When do you start enjoying the process of saving?’ If you did that, you’ll find you don’t care about spending money anymore.”
Suze Orman: Author & financial advisor
“Don’t go into debt unless it’s to make a long-term investment that will pay off in the future, like a home that will increase in value over time or an education that increases your earning power.”
Elliot Weissbluth: CEO of HighTower
“Money does not define success or happiness. In fact, if you are truly effective at what you enjoy, money usually follows your passion. Passion drives interest, which in turn drives focus and commitment. Both qualities are requirements for success.”
Matt Maloney: CEO of GrubHub
“Have a cash cushion: Before investing or starting a company, make sure you have enough money saved for at least six months to pay bills or anything else that might come up financially. It’s important to have a cushion of six months financial back-up before you invest or if something doesn’t work out in your favor.”
John Paul DeJoria: cofounder of John Paul Mitchell Systems
“Buy in bulk and on sale “It’s so hard to make a return on regular investments that you’re better off buying two years’ worth of toothpaste when it’s on 50 percent discount, there’s an immediate return on your money. Don’t stop with toothpaste, either. This strategy applies to any reusable or consumables that you have to have. When they’re on a huge sale on Amazon, buy them, because chances are, their prices are going to go up. That’s a real savings that you get to put in your pocket.”
Mark Cuban: Businessman & investor
“Have a long-term investing strategy: There’s no better way to build up your wealth than let your money earn even more money for you by investing in stocks or index funds. Many things will try to distract you from your long-term goals, but you have to stay the course. Do not let false hope, fear and greed crowd out good investment judgment. If you focus on the long term and stick with your plan, success should be yours.”
John Bogle: Founder of The Vanguard Group
“Start early. If you’re 45 and struggling, this may seem irrelevant, but in your case, the advice should be changed slightly to “start now.” The sooner you start managing, saving, and investing your money, however limited, the better off you’ll be as long as you avoid mistakes like throwing all your investment money into one stock.”
Carlos Slim: Business magnate
“Don’t save what is left after spending; spend what is left after saving.”
Warren Buffett: Investor
“Save to invest, don’t save to save. “The only reason to save money is to invest it. Put your saved money into secured, sacred (untouchable) accounts. Never use these accounts for anything, not even an emergency. This will force you to continue to follow step one (increase income). To this day, at least twice a year, I am broke because I always invest my surpluses into ventures I cannot access.”
Grant Cardone: Entrepreneur
“Money comes to you when you are ready for it. Start creating auto payments to your savings and investments early on, even if it’s $10 a month — and then, each year increase the auto payments to something that feels uncomfortable, and stick with it.”
Lewis Howes: lifestyle entrepreneur
What can we learn from the advice given?
* Financially savvy people are not impulsive buyers
It’s common for people to make impulsive decisions when it comes to spending money. Think of all the times you have walked into the mall with a list of things you needed and walked out with way more than what you were meant to get. Successful people know how to sacrifice the small comforts and wants today in order to have the big gains later.
* Financially savvy people keep track of where their money is going
To know where your money is going, it is important to keep track of your expenses. You can achieve this by starting with the basics of not ignoring statements and bills.
Take the time to evaluate and track what your monthly payments are, and where you are saving, investing and giving. Learn to cut back on expenses that don’t provide you with lasting fulfillment or value. Spend according to your priorities and values and avoid being influenced by what others spend their money on.
* Financially savvy people continue to educate themselves about money
Most successful people value education above money and view it as a life-long learning experience regardless of their age. This means that they continue to learn as much as possible about saving, investments and how their money can be affected by other events in the world.
There are so many resources available to you to start learning the basics of how to budget and how to save. Even when you get financial advice and help from a professional, ensure that you understand everything and can monitor your own finances to be able to make the best possible decisions. Ask when you don’t know and you will keep on gaining the right knowledge for your own unique situation.
This article is for information purposes only and you are advised to seek professional advice from your own accountant as your individual situation will vary.