Thu 18 Sep 2008
11 Best Secrets How to Get Rich
Posted by svetlana under general
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In Today’s News online was published an interview “10 Ways to Get Rich.” Warren Buffett, a legendary investor, chairman and CEO of Berkshire Hataway and the richest man in the world with his estimated fortune of $62 billion, shares his best secrets that can work for you. His several key strategies are business-like and to the point, but nowhere he mentioned that health is your main wealth and number one your key strategy. I think he should because all people must maintain their health and energy to keep up with the fast pace of life in the twenty-first century, and many will be interested in his thoughts and opinion about it.
Warren Buffett is the most successful Wall Street investor. You can learn a lot from his book, The Essays of Warren Buffett: Lessons for Corporate America that he wrote with Lawrence A. Cunningham, and other books such as Buffett: The Making of an American Capitalist by Roger Lowenstein; Warren Buffett Speaks: Wit and Wisdom from the World’s Greatest Investor by Janet Lowe. Recently I was searching in a hope to find a book about him as the man and his life outside of work. I did not find any. Most books about Warren Buffet give a brief picture of his life and concentrate on discussing and his known investments. A new book, The Snowball: Warren Buffett and the Business of Life by Alice Shroeder will be released at the end of September. Possibly this book will give us a full story about his life, dreams and healthy habits, too.
Here are my comments on the best secrets he spelled out. He did not express his opinion on important issues like taking care of your health and wellness, as an integral part of getting rich. In the meantime, our life is not only about business and money. It is also about our well-being, optimal health and joyful living.
1. Reinvest Your Profits.
If you made profits from successful deal, reinvest them. Dont’t spend. With America’s consumerism, obsessive shopping, credit card debts, I have a little doubt how many people will follow this advice.
2. Be Willing to Be Different.
As I observed some people who are different, usually they have hard time to adjust. They are often considered as outsiders and don’t feel very confident in pursuing high goals.
3. Never Suck Your Thumb.
Don’t you remember how you Mama and Papa tried to teach you, as a baby, do not suck your thumb because it’s a bad manner and can effect your teeth too? But you sucked it anyway when they did not watch you or when you were thinking about something serious. The lesson from “Never Suck Your Thumb”: don’t don’t just wish and talk. Act, but before you act, do your research, get all necessary information in advance and be well prepared before you make your decision to start a new project.
4. Spell Out The Deal Before You Start.
Think about the benefits of your future deal and bargaining leverage before you begin your job. You may think that your idea is great, but you must offer what the other party wants. What a puzzle!
5. Watch Small Expenses.
Obviously it means that you can turn a penny into one dollar. How many times our frugal grandparents and parents told us about this truth from their life experience? No arguments about it. However, if you painted only one side of your house that faced the road instead of a whole house in order to save some money, did you really save a bundle? Soon you’ll have to paint the other sides. So, why do you have to fool yourself? Just do it or don’t do it at all. Or another example. Will you want to work for a company where owner counts the sheets in rolls of toilet paper to see if you cheat him? Is it not called a humiliation? Imagine your earnings there!
6. Limit What You Borrow.
To limit what you borrow is a great advice. How many people you met who have never borrowed a significant amount of money to invest in stocks or real estate, to finance impulsive shopping “I Want It!” or to buy a house and paying 100% cash without applying for a mortgage? Today’s statistics are horrendous about banks, finance and insurance companies which failed, and people who thought their borrowing was manageable but were mistaken. Now they are overwhelmed by debt, calls and letters from creditors.
The best bet: don’t borrow at all or borrow a little, or pay in full for your purchase. If you don’t have the money, don’t rush to buy anything.
7. To be persistent, ambitious and competitive is a good suggestion. If we are talking about business “with tenacity and ingenuity,” and with an ability to be a merciless negotiator, we can possibly win against a better established competitor. However, you need a lot more to win over your very successful competitor.
8. Know When to Quit
It is always smart to know when to quit your job if you don’t love it or business that doesn’t perform. It is also good to know when to stop spending money. For example, if you started your bet in a racetrack, it can get you in trouble very fast. Once you lost, don’t bet again in a race. Analyze your gain or loss. Many chances you can loose again. The lesson to learn: never repeat your mistakes.
9. Assess Your Risks. It is some sort of prevention, but how do you know the degree of risk already taken? Will you fly high or fall hard? Is there any calculator to count the risks that can outweigh any potential risks? I didn’t see any, did you? Today the best calculator and computer is our brain. Think hard and estimate your chances before you enter a risky enterprise.
10. Know What Success Really Means.
Some people change with success and big bucks coming their way. They start living a lavish life: big houses, fancy yachts, private jets, and all other luxuries. Other people don’t measure success by dollars. They think about philantropic, humanitarian and spiritual ways to spend their money. They generously give to charities and they don’t fund monuments-buildings with their names. They don’t need it. They measure their successful life by how many real friends they have and how many people sincerely need and love them for who they are, but not for their money. Is it not an indicator and ultimate test of how you can live good life?
11.Change the way you live and think about life’s dilemma–how to improve and maintain your health and happiness for many years to come.
Summary: If you made plenty of money, but don’t live a healthy lifestyle and maintain your health and energy, you don’t have good life. So, take the courage, liberty and responsibility in your life and your actions in all directions. Otherwise, numbers 1-11 won’t matter at all.
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