7 Tips From Warren Buffett

1. Invest Your Profits

When your business or investment is in profit, or say just got a paycheck, do not be tempted to spend it lavishly. Indeed the temptation is very large. But think for the long term. Warren Buffett advises investing the profits. Where can he say that? Certainly from experience. In high school, a teenager buys a pin-making machine, where the profit from making the pin he uses to buy another pin-making machine, so in the end, he also has a machine maker pin of 8 machines.

2. Do not be afraid to be different

The second tip that Warren recommends is to not be afraid to be different from the others. If someone else takes a decision, do not just follow it. Warren famously invested heavily in sluggish business even though other co-workers had left the business and advised him to stop, assuming that the investment would fail. Why? Because he has done research, and he knows that the business has good potential in the future. Usually, Warren's decision is always right.

From here we can tell, when we make a decision, always take steps based on our self-determination decisions in our hearts, rather than on external assessments. Of course offset by careful research and observation before

3. Do not Be a "Thumb Sucker"

Research and data collection should always be done before investing or new business. Warren Buffet always learns all the things related to the business he wants or is going through. And this action, he said, should be done with quick action and not wasting time. Warren Buffet is famous for his ability to make quick and accurate decisions. So that's where the "Thumbsucker" comes out of him, to say people who just sit and think too long, so waste time and do not act. Warren is not dying to waste his time in vain. Always he used to read and study the market situation.

4. Always Make Clear Agreements Before You Get Started

Before you begin to invest or cooperate in any form, you must have a clear agreement on what kind of cooperation you will be in the future. It means what you offer and what you will get all must have been written. Warren Buffet always makes as detailed a deal as possible before even starting anything. Including family and relatives.

5. Monitor Small Expenditures

When Warren Buffet chooses a manager, he always chooses a manager who likes detailed figures to run his business. Why? Because he likes to invest in companies that have detailed calculations on finance. For example: how much toilet paper cost?

6. Limit Loans and Debt

Famous buffets hardly ever borrow, even for investment and home or land purchase. He always advises saving, because "living on credit card debt will not make you rich."

7. Have A Mindset

Never underestimate how powerful the mindset is. Warren Buffet once said: Rich is the mindset. Warren Buffett once said, "I always believed that I would be rich, and never doubted it for a minute."

The rich and the poor can be differentiated through their mindsets. The mindset of the poor is thinking about shortcomings. While the rich always think of abundance and prosperity. It is our beliefs that determine how we gain wealth, the decisions we make and how we move.