6 Golden Tips by Warren Buffet

Warren Buffet, who has been one of the richest people in the world since I can remember hearing his name for the first time ever, can be a great inspiration for just everyone who is constantly fighting financial troubles. This man is not only known for having an instinct for right investments, but also for being wise when it comes to personal finance. For many times during his interviews and in his writings, he has emphasized the importance of saving, budgeting (keeping track of incomes and outcomes) and spending wisely. Here are my top favorite Warren Buffet quotes:

"Someone is sitting in a shade today because someone planted a tree long time ago" - this quote clearly explains the importance of saving for future and the unexpected. There is no effective personal finance if saving is not considered as a vital rule.

"I've seen more people fail because of liquor and leverage - leverage being borrowed money. You really don't need leverage in this world much. If you are smart enough, you are going to make money without borrowing" - this line simply explains that for effective personal finance, borrowing should be avoided or at least limited to a certain extent and permanently controlled. It is like a bad habit, once people taste the flavor of free stuff (credit cards, shopping cards, loans) which appears free only at the beginning, they just can't stop pushing themselves deeper and deeper into this deadly swamp.

"If you buy things you don't need, you will soon sell things you do need" - enough said, one should never bite more than he can chew. Spending money on useless things is like a disease which has no treatment formula except for becoming reasonable and developing a strong will.

"Price is what you pay, value is what you get" - it is another smart statement by Mr.Buffet, which personal finance-wise may mean the importance of being farseeing and reasonable. Some things appearing cheap may conceal a real treasure behind the price tag, where some may be just a piece of junk with a glamorous tag. In "Picture of Dorian Gray" written by Oscar Wilde (one of my favorite books), I remember Lord Henry's (one of the main characters) words: "nowadays people know the price of everything but the value of nothing". Now, this book was written a century ago, but has anything really changed in people's minds?!

"Wall Street is the only place where people ride to on a Rolls Royce to get advice from those who take the subway" - this quote may appear to have two meanings: first, always do your best to be well educated. Education has always been the numbers one investment. If you are a pro in what you do, the toughest people around the world will sit calmly before you listening to every single word. Second meaning is that no matter how far you get in being successful and rich, keep being modest in your lifestyle and manners. The real rich are those who live a simple life riding on public transport with everyone else and waiting in line to buy a sandwich somewhere in the street. Remember R.Kiyosaki's words: "wealth is not measured by how much you have and much you can spend now, but by how long you will be able to live a joyful life the day you stop making profits".

"No matter how great your talent is and efforts are, some things just take time. You can't produce a baby in month by getting nine women pregnant"- finally, it is important to understand that sometimes you just have to be patient. Learn to wait, patience is a great personal quality. Those who rush all the time, make many mistakes and lose their hopes too soon.