Warren Buffett is an American business magnate, investor, and philanthropist, who is the chairman and CEO of Berkshire Hathaway. He is considered one of the most successful investors in the world and has a net worth of US$88.9 billion as of December 2019, making him the fourth-wealthiest person in the world.
Buffet shares the following are 10 secrets that will make you extremely rich as a young person:
1. Break your bad habits early
What is one habit you need to ditch, right now? For me, looking back, it was spending habits. They were worse than bad. Beyond horrible. As a teenager and young adult, I would spend before I had, and borrow to spend more. Break your bad habits early. You do not want to learn every life lesson the hard way.
2. Hire a mentor
Finding someone you admire is cute. Many people have their “role models”, there is not anything wrong with this. Find an influence in your particular area of interest, find someone to mentor you. Don’t be a taker all the time from them either. Your mentor, if you are lucky enough to find someone to pour into you, is there to help you, give back to them, or you won’t have them long.
3. Know your strengths
“You don’t have to be an expert on everything, but knowing where the perimeter of that circle of what you know and what you don’t know is, and staying inside of it is all-important,” Warren Buffett said. Understanding how you are created, what your strengths are, and what your weaknesses are, is one of the most important things you need to know, immediately.
4. Do what you love
Warren Buffett once said, “Work at a job you love.” Why would a billionaire say this? I believe it is because he understands nothing can bring you happiness if you spend your life in misery.
5. Never risk the important for the unnecessary
When you have all of your necessities, do not go out and risk it all for a temporary moment of pleasure, or from a fit of rage. Use good judgment. Use common sense. This seems to be rare these days.
6. Don’t pass up good opportunities
Sometimes good opportunities come along and we do not realize them. Sometimes, good opportunities require hard work and we ignore it. Don’t pass up a good opportunity when it makes you uncomfortable. Most of the time these opportunities will make you a little uncomfortable.
7. Tick-tock, protect your clock
The sooner you realize your time is your most valuable asset, the sooner you will begin to protect your time. Listen, you should learn as much as you can about time management, now! Once you manage your time, no, once you master your time, you will be unstoppable. Master your time. Keep an agenda. Protect the clock.
8. Avoid credit cards
Seriously. Avoid credit cards. If you take the bait early on, you will find yourself being a slave to a rapidly growing slave-master of debt. Learn to live and pay with cash. If you don’t have the cash, don’t charge it. Learn the self-disciplines and self-control necessary to master your money early in life.
9. Be kind
Kindness is one of the lost arts of our society. Love others. Do we always agree? Of course not. Does this mean we have permission to be raving jerks? Nope. Learn kindness, learn it early, use it often.
10. Be Willing To Be Different:
Don’t base your decisions upon what everyone is saying or doing. When Warren Buffett began managing money in 1956 with $100,000 cobbled together from a handful of investors, he was dubbed an oddball. He worked in Omaha, not Wall Street, and he refused to tell his parents where he was putting their money. People predicted that he’d fail, but when he closed his partnership 14 years later, it was worth more than $100 million. Instead of following the crowd, he looked for undervalued investments and ended up vastly beating the market average every single year.