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How to Become a Millionaire – Tips on Getting Rich from the World’s Richest Man

Written by Nickel - 11 Comments

Would you like to become a millionaire? Silly question, I know. Who wouldn’t? With that in mind, I thought I’d share some tips on getting rich from none other than Warren Buffett, the world’s richest man.

Buffett got his start selling sticks of Juicy Fruit gum as a kid in the mid-1930s, and ultimately became the world’s greatest investor. What follows is a list of things that he’s learned along the way…

Reinvest your profits. When you make money, reinvest your profits instead of spending them. Even a small sum can ultimately be turned into great wealth.
Be willing to be different. Don’t base your decisions on what everyone else is saying or doing. Think for yourself if you want to be above average.
Never suck your thumb. Do your homework, and be prepared to quickly make up your mind and act on it. Avoid unnecessary sitting and thinking.
Spell out the deal before you start. Your leverage is always greatest before you begin a job. Always work out the specifics of a deal before you start, even if you’re dealing with friends or family.
Watch small expenses. Be vigilant about minimizing your expenses, both in business and in your personal life. By doing so, you’ll ensure that you profits or paycheck go further than ever before.
Limit what you borrow. You can’t borrow your way to wealth, so be careful with loans and credit cards. And if you get in over your head, negotiate with your lenders to pay what you can. Once you’re debt free, save money and start investing.
Be persistent. With tenacity and ingenuity, you can win against a more established competitor.
Know when to quit. Know when to walk away from a losing proposition. There’s no sense in repeating the same old mistakes trying to dig yourself out of a hole.
Assess the risks. When faced with a decision, imagine the best- and worst-case scenarios. If the benefits don’t outweigh the risks, then think twice before proceeding.
Know what success really means. There’s more to life than money. According to Buffett, “When you get to my age, you’ll measure your success in life by how many of the people you want to have love you actually do love you. That’s the ultimate test of how you’ve lived your life.”

It’s pretty simple, really. Spend less than you earn, invest regularly, don’t go into debt, don’t take unnecessary risks, and stick to it. There are no magic bullets.

Source: Parade

Published on September 10th, 2008 - 11 Comments
Filed under: Miscellany

About the author: Nickel is the founder and editor-in-chief of this site. He's a thirty-something family man who has been writing about personal finance since 2005, and guess what? He's on Twitter!

11 Responses to “How to Become a Millionaire – Tips on Getting Rich from the World’s Richest Man”

1
J. Money Says:
September 10th, 2008 at 8:59 am
oh man, no secret stock to invest in? dang son…i’ll go back to sucking my thumb now
2
JB Says:
September 10th, 2008 at 9:16 am
We all have something to learn from richest man in the world. Some are harder to follow than others, such as 2. Be willing to be different. Any source for these tips?
3
"Mo" Money Says:
September 10th, 2008 at 11:43 am
All good tips from a man who should know.
4
Brian Says:
September 10th, 2008 at 4:00 pm
this is the website the quote above came from-

http://getrichslowly.org/blog/
5
nickel Says:
September 10th, 2008 at 4:12 pm
Brian: No, the information contained within this article came from Parade Magazine, which I linked to at the end. As near as I can tell, I published mine a couple of hours before JD. Does that mean that he stole it from me? Of course not. We both coincidentally wrote this up and published on the same day. But thanks for the accusation.
6
jim Says:
September 10th, 2008 at 4:45 pm
@Brian: People see the same stuff and blog about it all the time, relax dude.
7
MultifolDream$ Says:
September 10th, 2008 at 11:14 pm
I’m a big fan of Buffett’s philosophy. For me #8 is the hardest
8
Jenna Says:
September 11th, 2008 at 11:54 am
This is excellent advice. I usually seem to find every possible pothole in good advice though, and I can tell you that successfully performing these steps over and over again probably has gotten Mr. Buffett to the top.

They obviously sound great in theory, but the execution of doing all ten, all the time – that is tougher than it sounds.
9
Millionaire Acts Says:
October 21st, 2009 at 10:14 pm
think the ultimate way to become a millionaire is to EARN MORE and DESIRE LESS. Earning more increases your income i.e. (taking a second job, investing your money, buying assets that provide passive income, etc.) while desiring less lessens your spending (i.e. budgeting, frugality, etc.)

Make it a habit and definitely, you would become a millionaire someday
10
greg Says:
October 23rd, 2010 at 10:34 pm
being a millionaire is the only way to make sure your family and loved ones can survive in this day and age
11
Brett | Investing Basics Says:
December 7th, 2010 at 12:45 am
I love warren buffett’s favorite books to get ideas–reading through the Intelligent Investor right now. This post might oversimplify, but the points are timeless.

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