The Best Investment Tips From Warren Buffet

Form Healthy Money Habits

Mr. Buffet is famous for having lived in the same tidy and modest home in Omaha, Nebraska for most of his life, despite having acquired enough wealth to live like the Vanderbilts. He clearly understands the importance of healthy money habits, and living below your means is the most paramount money habit you can develop. If you live beyond your means, you strip yourself of the ability to save and invest. This leaves you at net zero or, worse, in debt.

Debt is anathema to any investment portfolio. If you pay 15 percent interest on a credit card, you really can't realistically make a return on your investments that exceeds it. Debt keeps you poor. Part of Mr. Buffet's success is directly attributable to his discipline in wise spending and saving habits. When you form healthy money habits, save religiously, and avoid the temptation to overspend and acquire debt, you can invest successfully for the long-term. Also, as Warren Buffet's example shows, avoid the temptation to buy a more expensive house than you need.