The wealthiest man in the world is self-made billionaire Warren Buffett, and the $62 billion dollar man was gracious enough to sit down with Parade and discuss his 10 best tips for getting rich. I'm inspired by Buffett's entrepreneurial spirit and tenacity for success; here are his five tips I like best.
- Reinvest your profits. In high school, Buffett and a friend bought a pin-ball machine for a barbershop. They took their profits from that first investment and bought more machines for different shops, and Buffett took his proceeds to invest in stocks and a small business. By the time he was 26 he'd amassed $174,000, the equivalent of $1.4 million today.
- Watch small expenses. Be aware and cautious with your spending, and your paycheck will go much further.
- Limit what you borrow. Buffett's advice: Negotiate with creditors to pay what you can. Then, when you’re debt-free, work on saving some money that you can use to invest.
See two more of Warren Buffett's tips when you
- Be persistent.We've talked about this before, and it's a point that Buffett includes in his top ten tips: With tenacity and ingenuity, you can win against a more established competitor.
- Assess the risks. Consider the worst and best case scenarios when making a difficult choice; seeing the consequences clearly will lead you to the smartest decision.