Warren Buffet's New Year Advice

@cuddiluk (1523)
Philippines
February 6, 2009 6:14am CST
We begin this New Year with dampened enthusiasm and dented optimism. Our happiness is diluted and our peace is threatened by the financial illness that has infected our families, organisations and nations. Everyone is desperate to find a remedy that will cure their financial illness and help them recover their financial health. They expect the financial experts to provide them with remedies, forgetting the fact that it is these experts who created this financial mess. Every new year, I adopt a couple of old maxims as my beacons to guide my future. This self-prescribed therapy has ensured that with each passing year, I grow wiser and not older. This year, I invite you to tap into the financial wisdom of our elders along with me, and become financially wiser. Hard work: All hard work brings profit; but mere talk leads only to poverty. Laziness: A sleeping lobster is carried away by the water current. Earnings: Never depend on a single source of income. Spending: If you buy things you don't need, you'll soon sell things you need. Savings: Don't save what is left after spending; Spend what is left after saving. Borrowings: The borrower becomes the lender's slave. Accounting: It's no use carrying an umbrella, if your shoes are leaking. Auditing: Beware of little expenses; a small leak can sink a large ship. Risk-taking: Never test the depth of the river with both feet. Investment: Don't put all your eggs in one basket. I'm certain that those who have already been practicing these principles remain financially healthy. I'm equally confident that those who resolve to start practicing these principles will quickly regain their financial health. Let us become wiser and lead a happy, healthy, prosperous and peaceful life.
2 responses
@mkmsam531 (267)
• Philippines
18 Mar 10
This has been a year older but just the same the lessons that can be learned from this post is still application up to this date. I have been continually educating myself especially on personal finances and this message of Warren Buffet will be part of my compilation on personal finance. Apparently, these important lessons in life are not taught in school. I like the maxim on earnings, spending and savings. I have been taught to get a job (one job) to earn a living while rich people earn from multiple income source. Spend on your needs only and not wants. But it is always tempting to keep on the trend and buy what's new in the market even if you pay it using your credit card. Anyway, really great lessons! I hope i could be rich like Warren.
@StarBright (2798)
• United States
8 Feb 09
Good words of wisdom. I would add to the first item about hard work. It is no longer true that ALL hard work brings profit. One must also work smart.