A Lesson in What Warren Buffett Would Do With Your Finances

He is widely known as one of the world’s most successful investors and certainly is one of the richest people in the world. He also happens to be Chairman and CEO of our namesake, Berkshire Hathaway. So, when Warren Buffett is offering up some free financial advice, we’re just going to go ahead and put it out there that it probably pays to listen!

So, WWWBD when it comes to his finances? Here are five financial tips we all could learn from Warren Buffett:

1. Watch Your Spending – No One Else Will! Buffett, who famously has lived in the same five-bedroom Nebraska home for over half a century, encourages everyone to closely examine the money they spend each day. Of course, he’s the ultimate example of where smart spending can get you, but Buffett also knows that there is no one who will care as much about his money as he does… if you don’t care about your own dough, why should you expect anyone else to?

2. Focus on the Future – But, NOW! Has someone already told you that “it is never too early to start saving money?” Well, Warren Buffett would confirm that whoever told you that was right! To push the point home, Buffett says that you can go ahead and put off saving your money – that is, just as long as when you decide to start saving, you’ll be capable of saving more money for much longer - just to reach same results that investing early in life can achieve!

3. Don’t Fear Investing, But Do Your Homework! This advice is coming from the guy who spends 18 hours a day poring over investment information and while we all may not have that much time to devote to our finances, Buffett says that you’ve got to be financially literate before you take what many consider to be the financial risk of investing in stocks. Buffett says “Risk comes from not knowing what you are doing.” So, studying stock options eliminates that investment risk!

4. Buy in Companies You Believe In! Continuing with the notion of doing your homework before investing in stocks, Warren Buffett encourages everyone to look at buying stocks as though they’re planning to buy the entire company one day. Yes, he’s invested in companies like Coca Cola and Wells Fargo – and, no, we all may not have the capital to invest in such solid foundations; but, Buffett says that you should trust your instincts when it comes to a company and their management. Like what a startup company is all about? Give them the shot they probably need and invest!

5. Be Patient With Yourself and Your Finances! Even Warren Buffett admits that everyone has a bad day sometimes and this goes for you and your financial investments, too. But, that is no reason to give up. Get this – Buffett even encourages investors to ignore news headlines when it comes to their stocks. Why? Prematurely selling a stock in a company you believe in is something you won’t want to regret when it bounces back! Patience is a virtue it definitely pays to have when it comes to your finances!

Again, Chairman and CEO of our namesake, Berkshire Hathaway, Warren Buffett is one of the world’s richest and savviest investors. If you’re interested in more of his free financial advice, find it here!

This post is sponsored by PA Preferred Mortgage:

Pennsylvania Preferred Mortgage is a full service mortgage banker and is a member of the Prosperity Home Mortgage, LLC family. Specializing in residential and refinance loans, Pennsylvania Preferred Mortgage offers a wide range of mortgage products, including fixed and adjustable rate mortgages, jumbo loans, Federal Housing Administration (FHA) and Veterans Affairs (VA) loans, and renovation financing. Learn more at www.papreferredmortgage.com.