We’ve compiled interview excerpts from the most exceptional financial advisors and figures for our readers. If you’ve come to seek sound financial advice that you can apply to your daily life right now, then continue on.
Warren Buffet is a veteran in the investing game; he’s built himself a net worth of $100 billion dollars and has been dubbed and recognized by some as the greatest investor of all time. And he gained his fortune through investing. Warren makes big trades in large companies like Apple and Coca-Cola. So, what can we learn from Warren? Let’s find out.
Investing In Yourself
“Invest in as much of yourself as you can. You’re your own biggest asset by far. Anything you do to improve your own talents and make yourself more valuable will get paid off in terms of appropriate real purchasing power. Those returns are big, too. Anything you invest in yourself, you get back tenfold,” Warren Buffet said in an interview with Inc.com.
Consider the words of a multibillion-dollar man. Investing in yourself is a piece of advice that’s timeless. While it might appear as very simple advice at first, it’s actually the wisest financial advice you could obtain.
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Investing in yourself is never a loss. Even if a person fails at trying to generate some profit from, let’s say, an investment opportunity, they’ve learned something new. Keep working on yourself while you try to build your wealth, and you’ve nailed the first lesson.
Frugality: High Value For Low Prices
“Whether we’re talking about socks or stocks, I like buying quality merchandise when it is marked down…Price is what you pay; value is what you get,” Buffet says.
This advice is applicable to many daily life aspects. Not unlike the former point, value is intrinsically intangible at times. Self-investment and quality. Either way, Buffet seems to be directly advising readers not to splurge or pay beyond their means, even for high-quality items, services, etc.
And the price of an asset/service does not always reflect its genuine value. If you can get high-quality goods, you shouldn’t miss out on the opportunity. Frugality and modest spending are good hands-on practices for handling money. If you manage to amass large fortunes in the future, you can re-apply what you’ve already practiced and not just foolishly spend money on high prices just because you can.
No Debt Zone: Try Not To Use Your Credit Card
“You really don’t need leverage in this world much. If you’re smart, you’re going to make a lot of money without borrowing. Interest rates are very high on credit cards. Sometimes they are 18%. Sometimes they are 20 percent. If I borrowed money at 18% or 20%, I’d be broke,” Buffet says.
Let money work for you, don’t work for money. That’s what most successful and rich financial advisors will tell you, and they’re right on the money. While using your credit card for small purchases is feasible, maxing out your credit card each month with high interest is financial foolishness.
Leverage and borrowed money can be useful but don’t use it unless you are in a desperate situation. Focus on finding a source of income that can be passive over time. Work on it. Buying assets instead of spending money on liabilities is a good shift to start with.
Leading financial advisor from the Merrill Lynch group, Erdmann has gained national and international recognition. What can we learn from him? Let’s take a look.
People Do Business With Who They Trust
“Hey, boss, none of our clients want or need a stock broker. What wealthy and successful families need and want is a team of professionals who can help them plan and manage all aspects of their planning and finances…Honesty is key. Because guess what: People do business with people they like and trust,” says Jeff Erdmann.
This is a simple but highly insightful piece of advice from Erdman that can be applicable advice for businessmen, stock brokers, and anyone who needs to make a sale. Here’s the bottom line: generating profit from a business means networking, and successful networking means getting people to like you and trust you. When they do, then selling your product to them is much easier.
Founder of NY Pine Group at Morgan Stanley, Barbara Yee is a successful wealth director in wealth management. Along with a team of six members that oversees $1.9 billion dollars, she advises more than 200 households.
Don’t Take Risks That You Can’t Afford (It’s Called A Calculated Risk For A Reason)
“Asset allocation is really the key to making sure that these portfolios do well. Of course, risk management is also important. I always advise clients not to take risks that they can’t afford to take,” says Barbara.
While, of course, in this context, she’s referring to managing the wealth and financial decisions of high-income families, her words are insightful and applicable to us readers as well. When it comes to building wealth, take smart and calculated risks.
The number one rule to risking money in trade and investment is to only ever lose the money you CAN AFFORD to lose. Do not follow the hype of bogus financial advisors who tell you that risk is what gets you profit.
That’s only the case for people who have the capital to afford a few losses, not for the everyday Joe. If you are saving capital to invest or trade in assets, you have to manage that money smartly. You should never risk it if you can’t make it back immediately.
Navigating financial advice can be difficult. There are many sensationalistic gurus on Youtube and the internet at large. You should be wary that they might be trying to buy you into something. Sound advice comes from figures that have experience and a solid background to show. We hope this has helped you.