Warren Buffett is world’s top investor. He has huge investments in the stock markets. He ranks in the top five of the world’s wealthiest people. For someone of his stature, he attracts admiration from millions of people. People who would like to be like him are on the lookout for information and mentorship from him on how they can also achieve financial freedom. Buffett does not disappoint his followers, eh from time to time offer advice on what he thinks are the best behaviors regarding personal and business finances. There are important lessons that Warren Buffett gives to his followers especially on managing personal finances.
According to Warren Buffett, there are a few things that need to be looked regarding debt. Any kind of debt, whether good or bad is not okay. Warren Buffett advises people to look for opportunities without necessarily borrowing money. Leverage may be detrimental to personal development. If one has to borrow, the money has to be invested wisely. It should get you into a better place and not be used for extravagance. Every person should try as much as possible to minimize good debts while keeping off bad debts as much as possible.
Warren Buffett also has a word on personal savings. Savings should be made before spending. The tragedy of personal finances is that people save what is left after saving. One should decide the percentage to save before spending. Many people think that the money they have is not enough to save and spend. However, this is a behavior that should be inculcated in our lives. People should teach themselves to save and then account for every coin that is spent on personal spending.
Warren Buffett advises people to adopt financial habits. When you have a habit, it will become hard to break them. Good financial habits should be encouraged.