Last week I stopped by Jimmy John’s in Oak Park, IL to grab some lunch. While eating, I noticed a sign on the wall that read: “Warren Buffet’s list of 10 Rules for Getting Rich.” Instead of ripping the sign off the wall and risking felony charges for theft and vandalism, I whipped out my iPad (never leave home without it) and typed the rules while enjoying a #4 Turkey Tom Sandwich with Honey Dijon mustard.
The rules were simple, yet profound. Here’s Warren Buffet’s 10 Rules for Getting Rich in its entirety (Source: Jimmy John’s Wall – Oak Park, IL):
- Reinvest your profits. “Even a small sum can turn into great wealth,” If you’re disciplined to not touch your profits. Let the power of compound interest work for you.
- Be willing to be different. Don’t follow the herd. Do what is best for you and your situation.
- Never suck your thumb. Ah, how I could learn from this one. Buffett makes decisions quickly based on the available information. I tend to sit and stew about things. Acting decisively can give you an advantage and prevent procrastination.
- Spell out the deal before you start. I stress this all the time: Don’t sign a contract unless you’ve read it (especially not a mortgage). Read the fine print. Understand the what you’re getting yourself into.
- Watch small expenses. While it’s true that the big things matter, the little things do too. Frugality is an important part of personal finance. But this principle also applies when investing, which is one reason I’m a fan of low-cost index funds.
- Limit what you borrow. “Living on credit cards and loans won’t make you rich.” Sure, leverage can get you into a home or a new car, but too much debt is one of the biggest drags on your financial well-being.
- Be persistent. If you know what you’re doing is important and right, stick to it. Doggedly pursue your goals. Learn to “fail forward.”
- Know when to quit. Just because you’ve already paid $12 to see Tyler Perry’s (GOD AWFUL) “For Colored Girls…”doesn’t mean you should sit through to the end. Be willing to cut your losses and walk away.
- Assess the risks. “Asking yourself ‘and then what?’ can help you see all of the possible consequences when you’re struggling to make a decision —and can guide you to the smartest choice.”
- Know what success really means. Success is different for each of us. Find what it is that brings meaning to your life, what makes each day important. Make this your focus.
Warren Buffett says:
“When you get to my age, you’ll 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’ve lived your life.”
Question: Did you like the list? How will you use it in life?
Great list, I find that I must most certainly watch the small expenses.
As always thanks for sharing….
Glad you enjoyed today’s post. It’s not the “BIG” things that do us in. It’s the small trivial things. We both need to keep an eye on them.
Now this is some good stuff…I love this list. It’s puts things into so much perspective. And Buffett is a genius in his own right anyway. You should do a mini-conference – a one-day pow wow session and jam it with entrepreneurs and business owners and people who want to learn, be successful, and step into the world of entrepreneurship. Surely this list would come in handy in some capacity!
Glad you love the list & there you go again with the ideas LOL.
I love the idea of hungry/passionate learners coming together to share. That was the spirit behind the Idea Conference which was a half-baked idea, scheduled at the wring time, & lacked effective marketing. I’m all for it if I can partner w/like-minded individuals.
Wanna parter together on this?