Entrepreneurs not only want to be successful, often they hope their dreams will be the next financial windfall.
If you spend more than you make, you will always be poor. It does not matter what your income looks like, because the outcome is still bleak.
Do not spend more than you make!
Some of the richest men and women follow this advice, including Warren Buffett.
Here are a few things Warren does that you should consider putting into action too:
- He does not spend more than $3 a day on breakfast!
- He spends cash, not card.
- He has at least one credit card, and he got it back in 1964.
First of all, the cash approach can eliminate unnecessary charges. It is also used for negotiating purposes. No fees and cash upfront during sales means more money in your pocket!
The fact a man worth billions of dollars will only spend $3 on his breakfast says a lot. He is frugal. You do not get rich by overspending. Decide between needs, wants, and necessary costs! When you invest, make sure it is the best use of your money.
It is nice to have credit for emergencies, but do not live your day to day life dependant on credit. It is a buffer, not your life support!