Deep down, we all want to be good with money. Regardless of how we feel about money’s role and effect on the world, it’s central to us being able to live more independent lives. So, what’s the best way for us to improve our habits with money, particularly if we’re not making all that much of it in the first place?
As with most initiatives in life, it never hurts to take advice from some of the most successful people in the industry.
“Rule No. 1: Never lose money. Rule No. 2: Never forget rule No. 1.”
It’d be hard to associate any article on financial wisdom without mentioning the simple, yet timeless advice of Warren Buffett. Buying his first stock at age 11, Buffett knows a thing or two about making money through discipline and research. Though, he’s also lost plenty of it. Yes, $23 billion in the 2008 financial crisis to be exact.
Regardless, Buffet’s rule relates to unnecessary risk-taking and gambling in the stock market. Buffett’s actions certainly live up to his words. The octogenarian is worth over $87 billion (after donating more than $27 billion over the last decade alone).
Depending on one’s financial circumstances, buying something affordable is often the only option. That’s what former Editor-in-Chief of Cosmopolitan Kate White thought—until she had a little breathing room in her budget.
The mindset of buying cheap can be financially crippling over time. Consider a pair of work boots that cost $35 and last for a good year of work compared to a well-made steel-toed pair that cost $150 but lasts for a decade, or longer. In most cases in life, buying quality-made things is more affordable in the long run. Buy cheap when you can get away with it, but don’t adopt it as an overall strategy.
“Where do I want to be 1, 3 and 5 years from now? Then take actions to help make that a reality.”
All too often when we think about our life goals and ideas of where we want to be, we zoom out too far to the point where we’re not sure what strides to make to get there. Andrew Housser, co-CEO of Freedom Financial Network, knows a thing or two about making the short-term strides to yield long-term gains. Under the FFN, Housser helps run five different financial companies, including Freedom Debt Relief, the nation’s largest debt relief provider.
“My philosophy is that not only are you responsible for your life but doing the best at this moment puts you in the best place for the next moment.”
Leave it to Oprah Winfrey to deliver the grand slam of financial and personal life advice. It also complements Housser’s advice above. Life presents us with moment after moment, decision after decision. The non-stop nature of existence can be overwhelming; making it easy to lose track of how each specific action we do or don’t take dictates the next one, and so on. If we can become more disciplined in doing what’s best for us in each moment, we’ll not only be better suited for the next, but we’ll slowly adopt an overall habit that’ll make each ensuing decision easier.
When it comes to financial advice, there’s really no limit to the amount of wisdom that’s out there. But these four quotes remind us to keep our financial health at the forefront of each moment, to buy things that will provide us long-term value and not take risks with the money we do have.