Numerous life changes come when we are getting older. Our approach to personal finance management also changes with time when we get experience and maturity.When we are in our fifties, just a decade away from our retirement or we may be retiring much sooner , one has to be very careful with the finances. The right financial decisions could make or break your future plans, so don’t leave them to chance. You must have the best of information you need to make informed decisions regarding your investments, spending and how to best protect your wealth.
Personal Finance Management Tips : –
Some of the important points , which the individuals in advanced age, must keep in mind are as under ;
First : – A life of constant competition with others like cars, home, holidays, children education/ career etc. should be stopped. Live your own life.
Second : – Stop obsessing about mastering the stock market, if you have not learned the skill of equity investment .
Third : – Make sure you have an investment philosophy. Write it down and make a plan to implement it.
Fourth : – Do not brood over past mistakes and errors. FOCUS on making corrections. Save atleast 30 percent of your income.
Fifth : – Get some control over expenses. Live within your means and make choices that fit your income. STOP taking personal loans.
Sixth : – Get rid of DEBT. Save sufficient amount for your retirement as well as rainy days.
Seventh : – Get serious about long term goals. Make a detailed financial plan and set specific target.
Eighth : – Ensure that you have conversations about money with your family- spouse and grown up children about savings and wealth.
Finance Tips From Billionaires around the world : –
Many people instinctively look in amazement at the thought of getting personal finance tips from rich people, as they believe that it is more of a sermon. But there are some solid tips from very wealthy people that make sense regardless of your financial situation and age. Mr. Warren Buffet, considered to be the second richest man, has mentioned the following few points regarding Savings and Management of finances :
- 1 Our favorite holding period is forever.
2 Price is what you pay; Value is what you get.
3 Risk comes from not knowing what you are doing.
4 I always knew I was going to be rich. I don’t think I doubted it even for a minute.
5 Someone’s sitting in the shade today because someone planted a tree a long time ago.
6 Money is not everything. Make sure you earn a lot before saying such nonsense.
7 Buy companies with strong history of profitability and with a dominant business franchise.
8 We simply attempt to be fearful when others are greedy, and to be greedy only when others are fearful.
9 You don’t need to be rocket scientist . Investing is not a game where the guy with IQ 160 beats guy with IQ 130
10 I try to buy stocks in businesses that are so wonderful that an idiot can run them.
11 I have pledged…to always run Barkshire with more than ample cash.
Similarly, other billionaires have some Important tips about the management of personal finances that can apply to just about everyone : –
1 START Early : – Carlos Slim Helu is a Mexican businessman ,was ranked as the richest man in the world for few years. His basic tip is : START EARLY.If you’re 50 and struggling , the advise should be changed slightly to “START NOW”. The sooner, the better
2 Find Your Passion : – Billionaire Oprah Winfrey said “ you become what you believe.” Change is possible whatever your situation, and the first step is believing in yourself.
3 You Don’t Have To Game The System : – Warren Buffet says that he made his investment fortune on The FUNDAMENTALS. Whether you have $50 to invest or $5,000, sticking with the fundamentals is smart.
4 Simplify Your Life : – Carlos Slim has lived in the same house for more than 40 years. Warren Buffet lives in a house he bought in 1957. Constantly pursuing things you don’t need puts you on a financial treadmill, not an upward escalator.
5 Cars Are Consumer Goods : – Don’t waste time on the idea that a car is a status symbol. Sure have a car, if you can afford to,. Many billionaires John Caudwell, David Cheriton, Chuck Feeney walk, ride bikes or use public transport for everyday getting around.
Some Important Tips For Long-Term Money Making
1 “ Only buy something that you’d be perfectly happy to hold, if the market shut down for 10 years”.
2 “ It’s far better to buy a wonderful company at a fair price, than a fair company at a wonderful price.”
3 “ Diversification is protection against ignorance. It makes little sense if you know what you are doing.”
4 “ If past performance was all that is needed to play the game of money, the richest people would be librarians.”
- “ Rule no. 1 – Never lose money.
- Rule no. 2 – Never Forget rule no. 2.”
CONCLUSION: –
Some very wealthy people started from very humble backgrounds. Whatever your financial situation, you can improve it, and personal finance tips offered by the very wealthy can make sense in just about any situation. Buy low, sell high and don’t waste money. Find your passion and make time for it. These aren’t just tips for financial success, but for making the most of your life, and isn’t that money is supposed to help you do?.