Table of Contents
- 15 Financial Advice From Successful People Around the World
- 1. Don’t Waste Money
- 2. Buying things to Impress people that at the end of the day, you don’t even like, is a really bad idea.
- 3. Envision yourself being Rich
- 4. Don’t save what is left after spending, spend what is left after savings.
- 5. Spend Wisely
- 6. Use debt carefully and Limit what you borrow.
- 7. Think Long-term
- 8. Invest in Yourself
- 9. Take Control of your Finances
- 10. Spend on Assets, not Liabilities
- 11. Make Money Work for You
- 12. Take Advantage of Market Downturns
- 13. Get started now to Avoid Regret Later
- 14. Proactive About your Finances
- 15. Diversify your Investments
In today’s world where social media is dominating the planet, I feel so sad that most specifically millennials and the younger generation are pressured into social media.
Social media is really powerful but does it make sense to your life? I think no. They’re just for fun and entertainment.
I spend hours on social media too, but in moderation because I believe they have nothing to do with my financial goals. They just let you spend money.
To achieve your financial goals, you have to quit and sacrifice some things that you do not even need in life like social media. They’re just a waste of time. P.S please do not bash me because it’s totally true.
To guide you on your financial success, I have listed the most powerful and life changing financial advice from different successful people in the world.
15 Financial Advice From Successful People Around the World
1. Don’t Waste Money
-Bill Gates, CEO and Co-Founder of Microsoft, is known to be the second wealthiest person in the world with a total networth of $103.8B according to Forbes Lists and is well-known for his charity works through Bill and Melinda Gates Foundation.
Are you a frugal spender? Well, not now because Bill Gates financial advice is not to waste your money on things that do not give you value.
For example, if you bought a $2,000 iPhone today and after a year, you will likely buy again a new iPhone because there’s a new latest release of new iPhone. Obviously, you are just losing your money into things that do not give you a return.
Therefore, stop wasting your money. Instead, deposit it to your bank accounts and eventually invest.
In most cases, do not let yourself be pressured just because of social media. You do not have to impress other people! Live below your means mate.
2. Buying things to Impress people that at the end of the day, you don’t even like, is a really bad idea.
-Gary Vaynerchuck, CEO of VaynerMedia, social influencer, speaker, author, and a self-made millionaire, is popularly known for his digital marketing strategies.
For his financial advice, do not buy things to impress other people and to show them that you’re filthy rich because a day will come that you will feel regrets and temptations on the actions you had done.
You do not need to impress other people though. They don’t care on your life! They don’t care on you. That’s why live your life simple but more meaningful.
3. Envision yourself being Rich
-Tony Robbins is a philanthropist, entrepreneur, author and speaker and well known for his art of public speaking. He gained millions just speaking in front of many people.
For you to become successful someday, try to imagine you already reached that level. In that way, you can already see yourself being successful which will then motivate you to take right actions towards that dream.
Do not stop believing because the power of attraction can work for you. Never mind if people laugh at your dreams. Let them laugh.
Tony Robbins said, “The path to success is to take massive determined action.”
4. Don’t save what is left after spending, spend what is left after savings.
-Warren Buffet or The Oracle of Omaha, is known to be the world’s most successful investor with a total networth of $73.3B according to Forbes Lists.
Warren Buffet’s financial advice is to allocate your earnings towards your future. To implement this for yourself, invest a portion of your salary into some investments like PAG-IBIG, SSS, time deposits, and stocks.
You could also automate your savings by asking your employer to do so. When this happens, you won’t be getting your full salary at the end of the month. Instead, a portion of your salary goes to your own savings.
5. Spend Wisely
Warren Buffett said that before buying one thing, think, wait, and evaluate first before buying. For example, if you are planning to buy the latest iPhone 11 Pro, think first. Will you sacrifice your monthly savings just for that iPhone?
Remember that every amount of money you spend on something that does not give you a return is like sacrificing your future to it.
Do not be so materialistic because those things will be destroyed someday. Instead, focus on improving your way of life.
6. Use debt carefully and Limit what you borrow.
When buying your dream mansion house or car, you may opt to borrow some cash from financial institutions.
Take time to realize and reflect that having too much debts decreases your chances of saving money for your future.
Set aside your wants and prioritize your needs then eventually increase your savings.
If you’re currently holding credit cards or existing loans, it’s now the time for you to get rid of it. Pay them as early as possible for you to increase your savings.
7. Think Long-term
If you save and invest, think of long term. Do not try to withdraw your money until the right time comes. Why?
If you keep your money into investments that earns high interest rates, you have the chance of becoming wealthy someday.
Let us take Warren Buffet as an example. At age 11, he invested in stocks and eventually bought more shares every time he has money. He kept his money in the stock market for so many years. Everytime he earn profits, he buy more stock shares of his favorite company. But now, look at him. He’s the world’s most successful stock market investor with a total net worth of $73,300,000,000.
Also, if you bought 10,000 shares of Apple in the year 2000. Guess what? You are now a MILLIONAIRE today!
In the year 2000, Apple’s stock price is $3.26 and as of April 2020, its stock price is $276.10. If you did this, you could now have $2744019.85 which is 8315.98% total profit.
That is why, invest your money instead of trading. You just need to be patient and your money will grow exponentially.
8. Invest in Yourself
Instead of buying unimportant things and spending most of your time on social media, why not invest into something that can improve your skills and knowledge?
Today, there are thousands of online courses available online for free. You can access them via SkillShare, Coursera, Udemy and other free learning platforms.
Some even awards you a certificate for finishing the online course which you can add on your resume.
Start enrolling into online courses to educate and better equip yourself with important skills and knowledge. Learn something that you’re interested in.
For example, if you want to improve yourself, why not take self-improvement lessons? If you want to build websites and apps, why not take programming lessons? You know, there’s so much things to learn in this world. Choose what your heart desires to learn.
Spend your time wisely. Instead of watching Tiktok videos for hours, why not read books, magazines, or other reading materials? In fact, reading can improve your critical and analytical skills.
Investing in yourself in your best investment in life. Always remember this advice!
9. Take Control of your Finances
-Robert Kiyosaki is popularly known for his legendary book, Rich Dad Poor Dad. He owns Rich Dad Company, a private education company that provides personal finance and business education to many people.
Controlling and managing your personal finances can be difficult to handle especially if you have lots of expenses to pay.
But the main idea here is to carefully track your own finances. But how? Make a budget and stick to it.
Making a budget is the best skill you can have. Thus, budgeting became more easier this time due to the emergency of technology. Some best budgeting apps online you can try are Mint and Wally. You can download them on Google Playstore and they are totally free.
10. Spend on Assets, not Liabilities
To become more financially independent, spend your hard earned money on assets that can give you wealth in return like for example the paper assets and real estate.
Let us take real estate as an example. You know that real estate is one of the most profitable business ever. If you buy more properties, their value will eventually increase through the years giving you higher returns in the future. In fact, most wealthy people have lots of real estate investments.
Try to limit your liabilities (debts, credit cards). Instead, focus on increasing your savings. Again, do not buy things you do not want.
If you are still struggling to make your own budget, I highly recommend you to read this article.
11. Make Money Work for You
For Robert Kiyosaki financial advice, do not deposit your money to your savings account earning a very low interest rate. Besides, it won’t make you rich.
Instead, invest your money into some investment instruments like stocks, index funds, bonds, and mutual funds which offers higher interest rates compared to your savings account.
Importantly, take advantage of Compound Interest. It is the world’s greatest invention that can help you build your wealth.
12. Take Advantage of Market Downturns
Let us take our current situation as an example. The coronavirus (COVID-19) affected almost all the companies and businesses in the world forcing them to stop their operation. As a result, stock prices went terribly low.
As a result, thousands of investors are taking advantage of the pandemic. Since stock prices are low, they are buying thousands of stock shares hoping stock prices will eventually increase giving them more profits and money.
Robert Kiyosaki said, ” The true investors make more when markets crash.”
13. Get started now to Avoid Regret Later
-Jeff Bezos is well known to be the CEO and Founder of the world’s largest online shopping store, Amazon and the world’s richest person with a total networth of $145.2B according to Forbes Lists. In addition, he also owns The Washington Post, and the space exploration company, Blue Origin.
For Jeff Bezos financial advice, the best time to get started is now because you might lose the best opportunities which will have a great impact on your life.
For example, if you deposited an amount of $10,000 today in a bank giving you an interest rate of 5% compounded annually, you could have $16,288.95 after 10 years. That’s the magic of compounding interest!
I had been hearing lots of people having regrets of not starting early. That is why I highly suggest you to start now for you not to regret later. The earlier, the better.
14. Proactive About your Finances
Mark’s financial advice is to be conscious on your own finances. You should not just buy things whatever you want instead start acquiring assets.
You should not wait for you to turn 30 to start investing or wait calls from your credit card company. Be responsible on your finances.
You should focus on your priorities. Pay your debts, save your money, and never spend your money on expensive things.
15. Diversify your Investments
Do not put all your eggs into one basket. This is the most common financial advice yet many are still doing this worst mistake.
For example, If all your stock shares belong to only one company, you should start to change your mind right now. What if that company went bankrupt? What if it failed? Then basically it means you lose your money.
That is why it is very important for you to diversify your investments. If the other one failed, at least you have another source of income.
Here’s the strategy I recommend. If you already have stocks investment, try to invest in index funds, bonds, mutual funds, Exchange Traded Funds (ETFs), cryptocurrencies (Bitcoin, Ethereum), foreign stocks or commodities like gold.
If you are struggling with your finances, try to read this financial advices many times as possible then eventually try to practice them on your own.
Take risks and challenge yourself. There is nothing wrong if you try. The important thing is you tried your best and did your best shot.
Start building your investment portfolio now and focus on acquiring assets not liabilities. Prioritize your finances and eliminate debts to avoid hectic headaches.
Learn from the successful people because they already have lots of experiences to tell. Treat them as your mentor and eventually share what you had learned from them. Let us spread the love!