Money | Manage your money like Warren Buffet

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When it comes to investing and minding money, very few can compete with business mogul Warren Buffett. We look at his financial habits and beliefs that has him laughing all the way to the bank.

From blogs to financial advisors, there are many only too willing to impart their advice on how you should save and invest your cash. While they may have worthwhile information and insights into financial markets, few have the real life experience and success that Warren Buffett has.

Surprisingly, there is no great science or maths to Buffett’s advice.

Avoiding debt, and especially credit card debt, is his number one rule. He believes that interest should work for you, not against. So why bother having a card that can charge high interest rates? As we now live in a world of visa debit cards, you do not need a separate credit card – you can only spend the money that is in your account.

Always keep cash on hand. “When bills come due, only cash is legal tender,” he says. “Don’t leave home without it.” The premise is simple. If you only live off a cash budget, you are resisting the temptation to use your cards and spend more on items. Putting cash aside for your bills means you stay on track of all your outgoings too.

Learn about money. As we witnessed during the boom years, many people signed up for financial products that they knew nothing about. Take a look at the daily news reports at what is happening in the financial markets before you invest and always seek more information from your banks or outside parties before you sign up to any new financial product.

Finally, invest in yourself. “Anything you do to improve your own talents and make yourself more valuable will get paid off in terms of appropriate real purchasing power,” says Buffett. If you need to take a course to get a step ahead in your career or personal development, do it. You are the best asset you have.