Rules For Becoming Rich

Friends, sometimes we all wonder how some people get rich and others with all their efforts and hard work can not achieve their goal of getting rich. So there must be something extra in those people who succeed and become rich.

Warren Buffet is one of the richest men in the world, during one of his talks with the writer who wrote his biography, he shared some rules which one should follow for becoming rich. So here are 10 rules recommended by Warren Buffet , which should be followed by young businessmen for succeeding and becoming rich

1 Reinvest your Profits

When you first make money, you may be tempted to spend. Don’t instead reinvest these profits. Buffet learned this early on. In high school, he and his pal brought a pinball machine to put in a barber shop. With the money they earned, they bought more machines, and soon they had eight in different shops. When the friends sold the venture, Buffet used the proceeds to buy stocks and to start another small business.

2 Be Willing To Be Different

Don’t base your decisions on what everyone is saying or doing. When Buffet began managing money in 1956 with$ 100,000 cobbled together from handful of investors, he was dubbed an oddball. He worked in Omaha, not on Wall Street, and he refused to tell his partners where he was putting their money. People predicted that he’d fall, but when he closed his partnership 14 years later, it was worth more than $ 100 million.

3 Never Suck Your Thumb

Gather in advance any information you need to make a decision, and ask a friend or relative to make sure that you stick to a deadline. Buffet prides himself on swiftly making up his mind and acting upon it. He calls any unnecessary sitting and thinking thumb-sucking.

4 Spell Out The Deal Before You Start

Your bargaining lever is always greatest before you begin a job- that’s when you have something to offer that the other party wants.. Buffet learned the lesson the hard way as a kid when his grandfather hired him and a friend to dig out the family grocery store after a blizzard. The boys spent five hours shoveling until they could barely straighten their frozen hands. Afterward, his grandfather gave the pair less than 90 cents to split.

5 Watch Small Expenses

Buffet invest in businesses run by people who obsess over the tiniest costs. He once acquired a company whose owner counted the sheet rolls of 500-sheet toilet paper to see if he was being cheated( he was). He also admired a friend who painted only the side of his building that faced the road.

6 Limit What You Borrow

Buffet has never borrowed a significant amount- not to invest, not for a mortgage. He was gotten many heartrending letters from people who thought their borrowing was manageable but became overwhelmed by debt. Negotiate with your creditors to pay what you can. Then, when you are debt free, work on saving some money that you can you invest.

7 Be Persistent

With tenacity and ingenuity, you can win against a more established competitor. Buffet acquired Nebraska Furniture Mart in 1983 because he liked the way its founder did business. A Russian immigrant she (the founder) built the mart from a pawnshop into the largest furniture store in North America. Her strategy was to undersell the bigshots, and she was a merciless negotiator.

8 Know When To Quit

Once, when Buffet was a teen, he went to a racetrack. He bet on a race and lost. To recoup his funds, he bet on another race. He lost again, leaving him close to nothing. He felt sick-he had squandered nearly a week’s earning. Buffet never repeated that mistake.

9 Assess The Risk

In 19995, the employer of buffet’s son, Howie, was accused by the FBI of price fixing. Buffet advised Howie to imagine the worst-and best-case scenarios. If he stayed with the company. His son quickly realized that the risks of staying outweighed any potential gains, and he quit the next day.

10 Know What Success Really Means

Despite his wealth, Buffet does not measure success by dollars. In 2006, he pledged to give away almost his entire fortune to charities, primarily Bill and Melinda Gates Foundation. He’s adamant about not funding monuments to himself- no Warren Buffet building or halls. “ When you get to my age, you will 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 lived”.

In the end, Warren Buffet says “There are no rich people in the cemetery. A person who is wealthy in friends and relationships can be richer than the person with the most money in the world”.

These are some of the guidelines suggested by Warren Buffet to become rich. He also cautions that one shouldn’t forget his/her friends and relationships after becoming rich, otherwise life will not be worth living despite of you being rich.

Waiting for your views on this blog.

Anil Malik

Mumbai, India

30^th August 2022.