4 Most Effective Piece Of Financial Advice Ever Received

 

1. Buy assets, not liabilities.
1. Buy things that make money for you: stocks, real estate. Don’t buy things that don’t make money: clothing, fancy cars, etc.
2. Don’t buy assets you don’t understand.
1. When your friends at the bank try to sell you a complicated financial instrument that you don’t understand, chances are it’s a bad apple.
3. Make more money, not save more money.
1. No one increases their net worth by saving. They increase by making more money.
4. People who look rich are poor. People who look poor are rich.
1. People who drive fancy cars and flaunt their supposed wealth are probably not that wealthy.

“I never invest in anything that I don’t understand” - Warren Buffett