If you were looking for a formula to get rich fast, this might just be it.
In a recent video for Inc. magazine, journalist and speaker Minda Zetlin revealed the four key habits that made Warren Buffett a multi-billionaire. And they’re so easy, you can start right this second! Even if you aren’t following these personal finance tips already, adopting them right now could help you become one of the richest people in the world.
1. Think like an entrepreneur
Got an inventor’s brain? You’re in luck. Zetlin says that Warren Buffett’s entrepreneurial spirit helps him find new opportunities to make a few extra bucks. “No matter what your job is, no matter what you’re making, if you need to make a little more, there’s always opportunities to do that,” Zetlin said.
Almost all of Buffett’s wealth has come from his investments, according to Zetlin. And here’s the good news: Investing is something anyone can do, regardless of age or income. As for the perks? It’s just one of the ways you can retire with $1 million by age 50.
3. Borrow as little as you can
Borrowing money again and again can turn into a downward spiral, fast. In fact, it’s one of the worst money mistakes you can make. “Yes, there will be times when borrowing is necessary to achieve an end goal” like education or a home purchase, Zetlin says. But like Warren Buffett, you should do so sparingly and only when you absolutely have to. Accumulated debt is tough to pay off down the road; plus, it puts less money in your pocket from paycheck to paycheck. Follow this advice that Bill Gates would have given his younger self.
4. Spend less than you make
This last tip is often easier said than done. To get started, Zetlin recommends pouring over your expenses and identifying what you need and what you can cut from your budget. Not only will your wallet smile, but living below your means can reap huge rewards for your overall well-being. According to Zetlin, “you’ll certainly be happier, able to sleep at night, able to deal with financial emergencies when they arise, and who knows? Maybe someday, a multi-billionaire.” These four tips are just the beginning of the list of money tips that personal finance experts teach their kids.