5 Simple Secrets to Warren Buffett's Success.

5 Simple Secrets to Warren Buffett's Success

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Friends ! Every person wants to become rich by earning money in this world. This is the question in everyone's mind that how to earn money and become rich quickly? But why does it happen that out of 780 crore people, only 2% of the people become successful and rich? And everyone else is able to earn only a living money by being a part of the crowd.

There are secrets of money which separate the rich people from the crowd and they are able to accumulate immense wealth in their life.

Today we will know in this article that 5 simple secrets of success of the world's third richest person Warren Buffet, using which he earned immense wealth and became the smartest, richest investor of this planet. By learning a lot from these secrets, you too can make your life successful and rich.

Making money and managing money is a skill that develops over time and was the biggest plus point with Warren Buffett as he started understanding the importance of investing from a very young age. Buffett, who had distributed newspapers to households since the age of 11, bought his first share at the age of 11 and by the time he was 14 years old, he started earning $175 a month by expanding the newspaper distribution to 500 households. This income was equal to the average salary of some people at that time. Buffett, who had added $70,000 by the time he completed college, managed to become the richest person in the world with some of his special investment strategies.

So let's know about five simple secrets of Buffett's investment strategy from which you will learn how to save money? Where to invest money? how to increase money

how to save money Warren Buffett often says a very deep point in his interviews that whatever you earn, do not save what is left after spending it.

But after saving, spend what is left and secondly how much you are saving is more important than how much you are earning.

To save money, it is important that you control your small expenses because just as the ocean fills drop by drop, the ocean can also be emptied drop by drop.

Never buy things you don't need because of people's imitation or pretense, because if you buy things you don't need, you may soon have to sell those things you need. If you are earning more than you need, then instead of foolishly spending that money on luxury and appearance, invest it wisely in the right place to secure your future and reinvest at least 50% of the profit. Sure do it.

Do not get into the habit of debt: Buffett says that taking loans should always be avoided.

Don't try to improve your life with borrowed money.

That is, spread as many sheets as you have and if you have any debt, then first of all pay your credit card bills and loans as soon as the money comes. This investment is much better than planning investments with borrowed money.

Do not invest until you have confidence:

Warren Buffett always recommends following two rules for the safety of money. The first rule is never to lose money in the market and the second rule, never forget the first rule. For this it is necessary that you understand the market well.

Assess the risk in the market and take the future according to your ability. Never decide to invest by looking at other people.

Before taking any decision, think carefully and invest money on the market only after thinking. To be successful, it is necessary to take the right decisions, but more important than that, do not take any wrong decision.

Therefore, after thinking carefully about every aspect, take the decision to invest the money only after being completely sure.

Do not depend on only one source of income: Warren Buffet says that if you cannot find a way to make money while sleeping, then you will have to work till you die.

This means that you put your money to work. Warren Buffett had understood the secret very well from this simple in his childhood. From school time itself, he found his way of passive income by getting pin ball machines installed at barber shops and buying a small farm and renting it out.

Even today there are many such options where you can earn passive income by putting your money at work and one of those options is the stock market. But if you want to invest money directly in share market then you need knowledge of share market. And knowledge is needed for study and study requires time and in spite of that the understanding of the market going up and down every day.

Which doesn't come in a few days or months. The solution to this problem is Mutual Funds, where a team of experts puts your money on the market with their own experience and you get the assurance of guaranteed returns from the track record of that mutual fund company over the years. But at the same time, on your investment comes the load of expenses of the mutual fund company, which you have to pay in both the conditions of profit or notes.