We all wish to see plenty of money whenever we open our wallets, but not everyone can boost their income to that level and consistently achieve financial results day after day. Money is something you can and should manage; your earnings will always depend solely on your actions, states Warren Buffett. What steps should you take to grow your money day by day, step by step?
You'll find out only by watching this video until the end. Welcome to the Money Channel! Hit the subscribe button and join the club of future millionaires.
The old secret of wealth: "Wealth is not a what, but a who," said Napoleon Hill. So, to increase your income, you need to become someone capable of paving the way to it. In his book, *Think and Grow Rich*, he clearly outlined three main principles that help a person properly build substantial earnings.
These are: rock-solid self-confidence, continuous and conscious expansion of your comfort zone, and an action-oriented mindset. Self-confidence means seeing yourself as someone capable of succeeding or at least doubling your income right now, no matter what is happening in the world, what others say, or how your family views your idea. You firmly believe you can earn more, are ready to act on it, and won't stray from your path.
Expanding your comfort zone is a classic method of growth, including your financial skills. Action is the bridge between our inner and outer worlds. Even if what you want is just a few steps away, you'll still need to get up and take those steps to reach it.
Nobody ever got a raise by just dreaming about it, and no one found ways to boost their income without doing something about it. There's always action standing between a dream and making it happen. Warren Buffett remarked in a Bloomberg interview about ways to increase your income: "Make your money circulate.
" Money, being energy, responds to your attitude towards it. If you waste it on trivial things, it won't come to you in larger amounts. Being overly frugal isn't good either, so diversify your income and spend money on various things: buying genuinely needed items, investing for returns, saving for big purchases, and making charitable donations.
This will make your money circulate and bring you more significant sums. Make use of your free time. Remember, time is our most precious resource.
You can either waste it or use it to your advantage. If you have extra time, try to make it beneficial: learn, acquire new skills, and gain experience. In other words, increase your market value and future income.
Change yourself to change your status. If you want the world to change, start by changing yourself. Don't expect to wake up one day to a promotion; you become as much of an expert as you can handle.
If you want change, dedicate time to self-improvement and set new goals. Stand out with fresh approaches to work or unique ideas for improving processes: green the office space, organize recycling, and be the initiator of change. Redistribute your finances.
According to statistics, most people spend 40% to 100% of their monthly income on shopping. Don't forget about smartphones, tablets, and vacuum cleaners bought on installment plans; these monthly payments count as shopping too. To shop smartly, follow these three simple rules: 1.
Make a shopping list before you go, and stick to buying only what's on the list. 2. Never shop for groceries on an empty stomach.
3. Try to pay with cash; most find it easier to spend invisible money than physical cash. By the way, for the same reason, it's always easier to spend someone else's money.
Ignore advertising. The engine of commerce is meant not to show you the value and usefulness of a product, but to get as much money out of your wallet as possible. The same goes for holiday discounts and promotions.
Ignoring smart marketing strategies is equivalent to increasing your income. Regularly record ideas. Here's a simple technique that can help you make significant progress towards a consistently high income in a short time: get a notebook and pen ready.
Step away from all tasks and concerns, turn off your phone, and just think. Have a little brainstorming session—write down all the ideas that come to mind, even the most unreasonable ones, if they relate to finances, increasing personal income, creating new sources of profit, or ways to learn useful material. Develop the ideas that come to mind, outlining clear paths to implement them.
Devote 15 minutes daily to this exercise; sooner or later, such activities will lead to a genuinely useful idea that can bring money. Friends, wealth is available only to those who understand modern finance and geopolitics. For example, did you know that India is joining the race for global economic leadership?
According to economists' forecasts, it could become the richest country on the planet within the next 35 years. How is this achievable, and why might its closest competitor, China, lose out? You need to know this if you want to understand what true wealth is.
A video on this topic is already available on our French channel, Simple Economics; the link is in the description. Never lose money. Rule number one: never lose money.
Rule number two: never forget rule number one. It might seem like odd advice; after all, who thinks losing money is a good idea? But it's not that simple.
It's very wise and practical advice to avoid risks as much as possible to stay successful and live happily. Never risk what you need for what you want. Warren Buffett himself followed this rule and never made risky investments.
He said, "The difference between successful people and really successful people is that really successful people say no to almost everything. " Form healthy money habits. Speaking to students, Buffett once said, "Mood behavior is habitual, and the chains of habit are too light to be felt until.
. . " They are too heavy to be broken.
We'd all like to break some habits, but the most important one we should develop is the habit of saving money properly. Don't save what's left after spending; spend after you've saved. To make this painless, it's best to set up an automatic deduction of a small amount from each paycheck and use apps that show the breakdown of your monthly expenses across different categories.
Don't keep all your money in the bank; keep some in cash. Another unexpected suggestion: considering Buffett's net worth of $132 billion, his company Berkshire Hathaway always has around $20 billion in cash ready to deploy—nearly a quarter of their assets. This seems unwise and goes against the general principle of finance to invest money and not keep it under the mattress.
He indeed loses out by not having this money invested in earning a profit, but this very practice saved his company during the 2008 crisis, and Buffett still remains in the top 10 of super successful investors. As Buffett says, "Cash, though, is to a business as oxygen is to an individual. " It's never thought about when it's present, but the only thing in mind when it is absent.
And dollars are trusted more than checks. This rule is especially important for those with irregular income. Think in terms of decades, not months.
Most people make the same mistake of trying to maximize the benefit of the current moment. Don't chase quick bucks; focus on growing your strength and confidence gradually throughout your life. Warren Buffett advised that successful investing takes time, discipline, and patience, no matter your talent or the enormous efforts you put in.
Some things just take time. You can produce a baby in one month by getting nine women pregnant, Buffett said. Think in terms of decades, gradually accumulating the sums needed for your children's education or your retirement.
Don't borrow; you don't need to take loans in this world at all. Buffett is very strict about this. He said, "If you're smart, you'll make your interest work for you rather than working to pay interest.
" If you manage your own money, read about finance; go to bed smarter than when you woke up. As an investor, my main job is to minimize risks and cut costs. But what does risk mean for the average person who isn't a financier?
Risk comes from not knowing what you're doing. The more you learn about money and the laws governing it, the better your financial literacy will be, and the better you'll manage your money, making the most of what you have. Money isn't everything.
Some material things make my life more enjoyable; many, however, would not. I like having an expensive private plane, but owning a half dozen homes would be a burden. Too often, a vast collection of possessions ends up possessing its owner.
The asset I value most, aside from health, is interesting, diverse, and long-standing friends, admits Buffett. Don't jump; step over. You don't need to have extraordinary effort to achieve extraordinary results.
The most important quality for an investor is temperament, not intellect. You need a temperament that neither derives great pleasure from being with the crowd nor against the crowd. I don't look to jump over 7-foot bars; I look for one-foot bars that I can step over.
Decide that you want to get rich. To be a rich man, you have to believe in your success. Buffett once said, "I always knew I'd be rich; I guess I never doubted it for a minute.
" To get better results, we need to set high expectations and work hard on our goals. Let yourself, your family, and friends understand that you must become financially independent. Create your future with a plan, realizing when to be strong and assertive instead of being conservative.
Start saving early on. By the age of 15, Warren Buffett had earned $2,000 delivering newspapers and selling magazine subscriptions. He used $1,200 of his income to invest in a farm and entered into a profit-sharing arrangement with its owner.
Start saving money as early as possible to make it your habit. Invest in profit. When Buffett was in high school, he and a friend bought a pinball machine.
According to the biography of a prospective billionaire, his friends put it in a barber shop and quickly made enough money to buy more machines and put them in other stores. Eventually, they sold all the machines and made $1,200. If you want your fortune to grow, the best thing to do is to keep investing in the business.
Learn quickly. Warren Buffett studied three years in college instead of four. Even though the cost of training was lower than it is today, it helped him to save a lot.
Nevertheless, this example is essential for today's students: Don't give up after rejection, that's what Warren Buffett always teaches. You may be surprised, but Harvard Business School didn't accept Buffett for post-interview training. But he didn't get upset; he went to Colombia, where he met Benjamin Graham, an investment industry legend.
Graham became Buffett's mentor to a large extent, and this acquaintance determined his future success. Act in person. In 1951, when Buffett was looking for companies to invest in, he stumbled upon Geico.
To explore the potential, he went to the company's headquarters. According to some information, the office was closed, but a watchman let the investor in. Fortunately, there was a man in the company that Buffett made one of his first deals with.
Geico is now a subsidiary owned entirely by Berkshire Hathaway. Be persistent. After graduation, Buffett wanted to work on Wall Street.
He wanted to work for Graham, but Graham said no. Buffett eventually returned to Omaha but continued to communicate with Graham and exchange ideas. As a result, the mentor offered his students to work for him.
If you're being turned down by a potential employer that you really want. . .
To work for, keep building a reputation in his eyes until you get a positive answer. Improve your public speaking skills; good oratory skills are a powerful tool for promoting business and yourself. Buffett admitted that he used to be terribly afraid of public speaking, but he took the steps, even a personal course from Dale Carnegie, not just to be able to talk but to use it as one of the best business tools.
Mental blocks can hold back your income. Many of us grew up with the mindset that being rich is shameful and bad. Books and movies often show wealthy people as evil, mean characters who always end up in trouble.
Since our minds tend to identify with the good guys, kids basically get the idea hammered into their heads that having lots of money is bad and dangerous. Parents and people around us often reinforce this too. If you want to boost your income, you'll need to do some serious work on yourself or get help from a coach.
This work will help you spot and get rid of all the mental blocks holding back your financial success. For instance, you might truly believe you can earn big money, or you might be unconsciously avoiding wealth because you think being rich is dangerous. Ever wonder why some people effortlessly attract wealth and success while others spend years investing time and energy only to end up with nothing?
You'll be shocked, but the answer is embarrassingly simple: it's all about small habits to avoid. These are the very habits that doom you to a hundred years of poverty. No need to look far for examples: billionaire Warren Buffett is among the top ten richest people globally, with over $132 billion to his name, yet he lives an unusually modest life.
Buffett doesn't dine at restaurants, preferring fast food, and doesn't buy designer brands. Even his iPhone is just a gift from Apple. Imagine that!
Warren, like other rich and successful people, has simply avoided things that doom one to poverty as a whole. Today, you too can uncover the main secrets of billionaires and learn which habits doom you to poverty. Watching various interviews with Warren Buffett, it's hard to believe he was once a very shy and uptight guy who struggled to talk to people.
Over the years, I've certainly learned to speak in public. I was terrified of speaking in public, especially when I had to do so in high school or college, Buffett says in one interview. The future billionaire had to pay for Dale Carnegie courses back then to overcome his fears.
Once Buffett started speaking, he immediately began earning big money on the stock market with his words. Sometimes the right word at the right moment can help you save a couple of dollars now and earn a million in the future. Once Buffett analyzed his weaknesses, corrected them, and began to build a billion-dollar capital around himself, he first removed habits from his life that would doom him to eternal poverty and bad luck.
The billionaire created an entire checklist of things that drain money from your wallet. You shouldn't show off your money; some people get dizzy from rapid wealth, never having handled large sums of money or knowing how to manage it. Such people start behaving inappropriately, buying expensive but completely unnecessary things or spending on crazy entertainment: a fountain of expensive champagne, eating caviar by the spoonful, excessive shopping—all attempts to shock the public and gain fame through available money.
But throwing away money isn't allowed for anyone, and life shows that people with such behavior very soon lose the easy money that fell into their hands. Buffett fiercely adheres to the principle of saving money. Many mistakenly see his approach as stinginess, although in reality, the billionaire understands that any amount of money should be treated with respect and frugality.
Then, the money will reciprocate and continue to come into your life. This is exactly why Warren Buffett behaves so economically, and most importantly, this approach yields results, and the universe always supports Warren. For example, his company, Berkshire Hathaway, has remained afloat for many years, even despite the crises of 2008 and 2020.
You shouldn't live by the motto "not worse than others. " The desire to imitate others does terrible things to people. If a friend has an expensive phone, should I have one just as good?
The neighbor bought a luxury car; am I any less? A friend showed off a new diamond ring; am I poor? These are the kinds of phrases that kick off a process driving modern people into real financial bondage.
The desire to live just as well and to have the things others already have pushes people into rash actions without considering their financial capabilities. People take out bank loans, buy things on installment, but can't afford to pay for them. The result is huge debts and a miserable existence, forcing them to work solely to pay off loans.
Warren Buffett always says that everything comes to those who know how to wait. So, in the pursuit of wealth, the one who knows how to wait always wins. You shouldn't worship expensive brands.
Buffett believes that the current generation lives in an era of branded items. These are the most ordinary things—no better or worse than others—but widely advertised and therefore incredibly popular, which significantly affects their cost. People who want to stand out from the crowd are willing to pay huge sums for branded items, even ready to go into debt and live on a tight budget.
In reality, for huge money, they get a mediocre item, no different from a cheap alternative. It’s said about such people that showing off is more important than money, but surrounding yourself with overhyped branded items can only earn you fake popularity while driving you into huge debts, becoming a slave to things. You shouldn't live beyond your means.
There's a category of people who've learned to earn big money but haven't learned how to spend it wisely. They don't flaunt money or try to impress others with expensive purchases; they just lack a culture of consumption, which causes their earned money to slip away like sand through fingers. These individuals might invest in a business without understanding it or buy expensive things without measuring them against their real income.
Usually, this approach to money is typical of people who've come from humble beginnings and weren't taught how to handle money. Buffett emphasizes that these people's spending is thoughtless, and it's exactly this that leads to constant money leakage and the threat of poverty. You shouldn't look down on the poor.
Some people, especially those who've suddenly come into money and risen from rags to riches, start looking down on others—particularly the poor and those barely making ends meet. You could say these people are obsessed with their material status. This happens because they’re nothing special as individuals and have no other way to stand out.
People with this attitude towards others struggle with communication; they have trouble building relationships, they're unreliable, and you can't trust them. Buffett believes you can build a good business with a bad person. Over time, this problem leads them to lose money, sometimes to the point of going completely broke.
It's hard to break free from poverty. Changing your life is really hard, especially when you have to give up something familiar for potential future gains. Warren Buffett calls this the first test on the road to wealth.
The sacrifice isn't tragic; it just often brings a lot of inconveniences. But by taking the step, like giving up brand names or living within your means, you become a money magnet. The effect won't be instant because you need patience, but in the long run, you'll say goodbye to poverty for good and can finally enjoy your personal wealth.
Write in the comments right now: "I will become rich. " Just those words, "I will become rich. " This will tune your body and mind to receive big money, and you'll definitely reach the top.
It's a crucial ritual—don't skip it. Also, don't forget to watch the video about India challenging China's dominance and aiming to become a world economic leader. The video will pop up on the screen now.
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