This I read from an article in a Magazine I've read. I forgot about the name of the author but this is an excerpt of her interview with Mr. Warren Buffet which had given me a lot of insight about saving money. Some of this were very true that's why I wante dto post it here in my blog to share it to all of you.
On Earning: "Never depend on a single income. Make investment to create a second source."
Yes this may hold true. It is appropriate to save money and put up an investment in order to double that money. Some people nowadays are not setting aside for an investment. Instead they spend all their salary to some things that are not even necessary. And in the future it will gonna be late to save money. Saving money early by setting aside some for investment purposes will be helpful in the futue. And I firmly believe that. Despite how labile the market is yet it is still safe to invest as long as you don't touch that money. It will double up by the time of retirement.
On Spending: "If you buy things you do not need, soon you will have to sell things you need."
Yes, this is true again. Things we buy that we are unnecessary just piled up is our cabinets, storage, garage, or warehouse. And if we need money in the future and we don't have any sources at all we we will end up selling the things that we needed. Some will sell their houses because of overspending on teh things that is not even needed piling up our debts and had no means to oay it off because of our grave mistake of buying things compulsively which can destry our life and future.
On Savings: "Do not save what is left after spending, but spend what is left after saving."
This is also very true. In reality people do save the mone that they left after spending. And this is a bad practice among us people. We can only spend the money that we earned after segregating some money for our savings. And this should be the safest and appropriate way of saving money. It helped us ave for the future thereby giving us a comfortable position that our future will be more secured financially and all aspect of life will be maintained well.
On Taking Risk: "Never test the depth of the river with both feet."
Definitely a very facttual statement. In venturing for another challenges in life we should not be very confident on some people because even the ones closest to us will hurt us. Always leave something for yourself just in case the situation will give you something to think of. It's hard but we are only responsible for ourselves and not others. We have to leave something for ourselves and not to be all out because if something will happen it is very difficult to pick ourselves up form the shattered pieces that the situation had brought us. always be smart and observant.
On Investment: "Do not put all egs in one basket."
Exactly yes. We have to be prudent where we invest our money. And in investing you have to remember that there are a lot of fishes in the ocean and that you don't have to feed on one forsh. You have to have the initiative to think about the future and the worst thing that could happen anytime, you'll never know. Putting on your money in one agency will probably put you at risk and that it will be irreparable if some major damage will be broken. Tsk. Tsk. Tsk.
On Expectations: "Honesty is a very expensive gift. Do not expect it from cheap people."
On the other hand we have to trust who we talk to about money. Being honest to a person you just meet on the street will give the other people an idea that you can be fooled. Always leave some dignity in you. Do not bare your self in someone that you could not trust especially this investment people. It you're an open book to every body then at least leave 1% to yourself. Always guard yourself and not be so trusting to anybody. This will just open some doors to people who wanted to milk some money on you.
I was once taking risk to come here to America and it was a great opportunity for me to enjoy the unfaltering challenges everyday. I'm glad I did not falter. Life is always full of promises so always take each day a learning process. It's much better to save for the future. Thanks to Mr. Warren Buffet, the great economist, to have shared your vast knowledge to teach us things that we needed to know about money.
In fact, I think, money makes the world go round. So be sure to be careful of the allure of money. Spend wisely guys!
No comments:
Post a Comment