Straight from one of the most successful investors of all time, check out this great advice from the legendary Warren Buffett:
Stay in your home
- You don’t have to move every time you get a raise. Enjoy the home you have, and keep building equity.
Buy used cars
- Cars are not an asset; they’re an expense. If you want to keep your transportation costs down, buy used. Most new cars lose up to 30% of their value the moment you drive them off of the lot.
Eat simple and use coupons
- Before you spend money on fancy food or the ingredients for a complicated meal, be sure you and your family will actually eat it. Throwing away food is one of the biggest ways Americans waste money. Similarly, not using coupons (on things you’d buy anyway) is the same as throwing money out the window.
Eliminate (high-rate) debt before investing
- You’re never going to get a guaranteed return on a legitimate investment that’s as high as what you pay on almost any loan you have. This is especially true for credit card debt. Pay these off first, and while you do, educate yourself on sound investment practices.
Save first; spend some of what’s left
- Set up a savings plan, and stick to it. Remember: just because you have some extra money doesn’t mean you have to spend it. Always wait at least 24 hours before making any big purchases.
As always, First Education is here to help you meet your financial goals—no matter how big or small!
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