When it comes to financial advice, insight from someone in the know is extremely valuable. You probably already know about basic principles such as saving some of your income and spending in moderation. But what do the famous and wealthy have to say about managing personal finances?
All of these well-known people from different fields have one thing in common: they’ve gained quite a bit of wealth along the way.
1. Will Smith: don’t try to impress others
“Too many people spend money they haven’t earned, to buy things they don’t want, to impress people they don’t like,” says Will Smith. Hollywood A-lister Smith might have an impressive net worth, but he doesn’t believe in trying to impress others. In this short, succinct sentence, he’s basically saying you should be sensible about money. Spend within your means, budget and save, and buy things you really need without trying to appear a certain way to others.
2. Henry Ford: invest in yourself
“Old men are always advising young men to save money. That is bad advice. Don’t save every nickel. Invest in yourself. I never saved a dollar until I was forty years old,” said Henry Ford. Ford seems to be saying you should spend money on educating yourself and staying informed when you’re young, if you can. He doesn’t say not to save Just not to save “every nickel.” So it’s worth finding ways you can invest in yourself in order to generate more wealth-building wisdom, whether it’s through education or experience.
Ford also said, “If money is your hope for independence you will never have it. The only real security that a man will have in this world is a reserve of knowledge, experience, and ability.” Here he says not to look to money for security or independence. Instead, work on your own knowledge, ability, and experience to build wealth.
3. Donald Trump: Listen to your gut and stick to what you know
The billionaire 45th President of the United States Donald Trump probably knows when he’s talking about when it comes to personal finances. He says, “Experience taught me a few things. One is to listen to your gut, no matter how good something sounds on paper. The second is that you’re generally better off sticking with what you know. And the third is that sometimes your best investments are the ones you don’t make.”
Trump appears to encourage us to trust our instincts when it comes to investments, business, and other financial opportunities. At the same time, make sure you work with what you understand instead of investing in what you don’t. Finally, he appears to recommend using advisors or relying on experts who can help you make the best investments.
4. P. T. Barnum: Rational savings
Politician and businessman P. T. Barnum seems to suggest regular savings are the best way to build wealth. “A penny here, and a dollar there, placed at interest, goes on accumulating, and in this way the desired result is attained. It requires some training, perhaps, to accomplish this economy, but when once used to it, you will find there is more satisfaction in rational saving than in irrational spending.”
Barnum recognises that rational, regular savings, no matter how little, could help you accumulate personal wealth. He doesn’t pretend it’s easy and says you’ll probably need a little training – perhaps with a budget and by staying disciplined – to save more instead of spending it irrationally. So you don’t have to wait for a big payday or higher salary to start saving; instead, start budgeting and saving today.
5. Maya Angelou: do what you love
Writer and civil rights activist Maya Angelou believed in doing what you love instead of making money your only goal. She said, “You can only become truly accomplished at something you love. Don’t make money your goal. Instead, pursue the things you love doing, and then do them so well that people can’t take their eyes off you.”
Angelou seems to be suggesting that if you do what you really love and focus on doing that well, people will be interested, and you’ll build wealth somehow anyway. Her personal wealth insight seems to underscore the importance of pursuing what you’re passionate about and building personal wealth from it.
6. Warren Buffett: buy and hold for the long term
One of the most successful (if not the single most successful) investors of all time, Warren Buffett, has simple advice for investing. He says, “Only buy something that you’d be perfectly happy to hold if the market shut down for ten years.”
With this statement he’s saying when it comes to stock or other investing, choose assets that will gain over the long term. He seems to be also implying that if you’re looking for a quick gain from your investments, it’s probably not the right approach. Look for the secret ingredient of time to build your wealth.
Industrialists and investors like Ford and Buffett would certainly know what they’re talking about when it comes to personal finances, but you don’t have to be famous to start working on your personal finances and on building wealth. By exploring the lessons learned by others and starting with budgeting and saving today, you could achieve your financial goals sooner rather than later.
Start using these tips and you will improve your financial status very fast. However if you still need a personal loan, please don’t hesitate to contact us.
