Warren Buffet’s Smart Money Tips for 2015

Hey gang!  Here’s another great article from Inc. Magazine on common-sense strategies to get out of debt from one of the world’s top investors, Warren Buffet.

Here is the blog post below in it’s entirety.

God Bless, Tim Marks

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The Smartest Money Tips for 2015 From Warren Buffett and Other Experts
Reduce debt, set financial goals, but be sure to invest in yourself.
By Minda Zetlin

Want more wealth in 2015? Most of us do, but we’re not sure how to get there. To help us figure it out, the finance site GOBankingRates compiled one piece of advice from 11 top financial wizards for the coming year, and invited readers to vote for the best. If there’s a consensus among the experts, it seems to be this: Invest in yourself and your own smarts; be conservative everywhere else.

That makes a lot of sense. This is the age of the entrepreneur, but with continuing economic uncertainty this isn’t really the time to splurge. You can see the full list of expert tips (and vote for your own favorite) here. Meantime, here’s a look at the high-profile experts’ advice:

Keep it simple.

The best places to invest are in the things you know best, according to legendary investor Warren Buffett. “If you don’t invest in things you know, you’re just gambling,” he told CNBC. It’s one reason he’s never invested in the tech sector, for example.

In his 2014 shareholders letter, he explained more fully: “You don’t need to be an expert in order to achieve satisfactory investment returns. But if you aren’t, you must recognize your limitations and follow a course certain to work reasonably well. Keep things simple and don’t swing for the fences.”

And don’t be misled by lofty promises, he added. “When promised quick profits, respond with a quick ‘no.'”

Get back to basics.

Many people want to improve their financial outlook but aren’t sure how to go about it, according to Jeanette Pavini, two-time Emmy-winning consumer reporter. Many of her viewers write and tell her that they’re overwhelmed by the numerous options and resources out there. “They feel as if they are never going to dig out of the hole, so they become discouraged and simply give up.”

Don’t let this happen to you. Improving your finances isn’t rocket science, Pavini says. It begins with understanding exactly where your money is going, writing it down, keeping track, and looking for opportunities to cut costs. “Learn what areas in your budget you actually have control over,” she says. “Have a plan and keep it simple.” And don’t be fooled into thinking only major changes make a difference, she adds. “No savings is too small. They all add up.”

Make a plan.

 

“If you’re going to win with money, you have to be intentional,” says Rachel Cruze, co-author with her father, Dave Ramsey, of Smart Money Smart Kids. That means having a budget so you can stay out of debt (or pay off existing debt), as well as an idea of how your money will work for you.

Get a buddy.

Like a weight-loss or exercise regimen, you’ll likely do better at managing money if you have an accountability partner to support you and keep you honest. That advice comes from Tiffany Aliche, “The Budgetnista,” and author of The One Week Budget. “Money management is a team sport,” she says.

Get out of debt.

That one-sentence tip is author Ramsey’s best tip for 2015–and for every year, he says. Though this can be tough advice for someone starting a company to follow, it’s wise to keep your debt as low as you can without crippling your business. And keep your personal debt nonexistent if possible.

Pay off those credit cards.

You don’t need a financial expert to tell you that carrying credit card debt over time is never a great idea, especially if it’s personal debt as opposed to debt from your business. But if you’ve been carrying balances for a while, making them go away should be high on your list of resolutions for the coming year–and the sooner the better.

That’s because the Federal Reserve has signaled its intention to raise the prime lending rate this year, and credit card interest rates will rise at the same time, according to author and TV host Suze Orman. Although eliminating credit card debt should always be a primary financial objective, she warns, “now it is urgent, as anyone with credit card debt in 2015 is likely to see their borrowing costs go up.”

Put money in a Roth IRA.

Your smartest strategy is to save for the future by putting as much money as you can into an IRA, according CNBC’s Sharon Epperson. “One of the best things you can do in 2015 to set yourself up for financial success in the future is to be strategic with your savings,” she advises. “Save as much as you can in a Roth IRA.”

Most employees can contribute to a traditional IRA, and if you’re self-employed, you also have a SEP IRA as an option. Those can be very tempting because the contributions you make are tax-deductible when you make them. On the other hand, you will pay taxes on that money when you withdraw it from the IRA. With a Roth, the contributions you make are not tax deductible–but when you withdraw that money it will be tax free. You’ll be glad you chose a Roth if your business takes off and you find yourself with more income (and thus a higher tax bracket) in your 60s than you had in your younger years.

Set specific goals.

You’ll have a harder time meeting your financial objectives if you don’t know exactly what they are. So spend some time determining your goals, such as having money set aside for emergencies, putting your kids through college, or having enough saved to retire at 65, advises Kiplinger contributing editor Cameron Huddleston. “Your needs will take precedence over your wants, with short-term needs being the top priority,” she notes. “Then you can set goals to meet those needs–and fulfill your wants.”

Most Americans fail to set specific financial goals, she adds. They might have a vague notion of what they want. “But they haven’t set actual goals and figured out the steps needed to achieve them.”

Give yourself a raise.

If you’re like many people, the first step toward financial health is increasing your income. So do what you need to make that happen, advises Emma Johnson, who writes the Wealthy Single Mommy blog.

“This might mean mustering up the nerve to ask your boss for a pay increase, starting a side business, or increasing your billing if you already have your own company,” she says. Once you’ve increased your income, make sure you’re saving at least 5 percent of it, she adds.

Invest in your own development.

“Make 2015 the year that you choose to invest in your personal self-development and hop out of your comfort zone,” says personal finance author and TV personality Farnoosh Torabi. “Learn something new, travel, take risks, and practice your negotiating skills.”

Investing in your own development is a solid idea at a time when the income gap between those with education and marketable skills and those without is growing greater. “Rather than react to the changing times, plant some seeds now so that you can be proactive and stay in control of your career and remain competitive,” she says.

Don’t act like a victim.

After years of economic upheaval, uncertainty over the recovery, confusion about Obamacare, and growing inequality, many Americans have started feeling like victims of the economy rather than participants in it. It’s time for that attitude to stop, according to Robert Kiyosaki, author of Rich Dad Poor Dad. “A shift in mindset (from ‘victim’ to ‘champ’) and a decision to put your talents, your intelligence, and your strengths to work will set you up to take control of your life and your financial future,” he says.

“Make 2015 the year you champion your life and take control,” he adds. “Can’t find a job? Challenge yourself to create one for yourself. Want to start generating passive income and building assets? Do it! Find a mentor. Start a blog or podcast. Write an e-book. License your killer salsa recipe.”

Our financial futures are up to us, he adds. “Will you keep letting yourself fall victim to life’s curve balls? Or will you hit it out of the park by putting the power of financial education behind every swing you take?”

 

7 thoughts on “Warren Buffet’s Smart Money Tips for 2015”

  1. I love this article! I love even more the fact that Life Leadership has the answers!! Financial Fitness and investing in ourselves through personal and leadership development. It is not by accident that we are growing leaps and bounds with what we have our hands on!

  2. THANK GOD FOR all of you who made it possible for the next generation of our young society, whom are struggling with student loans because the financial fitness pack was not available when Orrin Wood n Chris Brady were in College to be Engineers. N now it’s available n to introduce this to them is one of my goals as a proud member of the Life Leadership Growth Development Group. Because it’s the easiest n simplest way to get out of debt fast. Because it’s really just a vehicle with a manual that will help us complicated human Race get to or through our financial goals and Responsibilities. Because all it is, is a modern updated version of the teachings in the Scriptures, which was our first human Race Manual for Life. God created us n also gave us a manual so that way, when we are broken down we have a Roadmap to lead us back to him, n to return our brokenness no matter what it may be to Him, the manufacturer of the Human body, human spirit, the human engine/brain n of the whole human experience or the human intellect. So because time has changed n most humans today no longer has just a farm to just ask or pray to God for rain. N our markets have changed, we too have to be re-trained mentally, spiritually, physically n financially to help cope with these new changes n challenges of Life period. N that’s why I definitely would Recommend this Financial Fitness Pack to everyone n to anyone. Mothers could have there babies listening to the cds while there pregnant with them, just as they prepare them from the womb before entering earth. It’s important for the lifespan of any human beings, to be prepared before birth. It helps feeds the mind, for earth living requires us to be fit mentally, physically, financially and of course Spiritually. Because all 4 elements is essential for human interaction with one another n they are a vital part s for our every day life existence which is y it is so important that we feed all 4 elements a balanced diet, that fits each element experience, for God is the one that gives us life, but we sometimes because of our past, we forget that there is a better future intended for us, by him our Heavenly Father. So instead of focusing on building a future fit for the 4 elements, mind, body, soul n financial, we focus on past experiences of the 4 elements. N by training all 4 elements to only think of the past. We not only keep ourselves there but we also kept people around us in our past. N therefore the cycle just keeps being repeated to the newborns n to the next generation until one of the 4 elements shriveles n causes the whole community or village or country to either starve themselves physically which is known today as world hunger, or it would cause a whole family, a whole country, a whole nation to starve financially. Or it could cause a whole country or nation to starve mentally which is the engine of our vehicles, if the engine of the car is dead the car can’t start n so is the human mind n it starts to get rusty or sick like a human, we overheat, when we don’t have drinking water to cool us down. N we see that in many parts of the World today. We can’t have strength when we don’t have proper food or nutrition for our bodies, n when the car is out of gas n can’t go anywhere. Same thing with our bodies, it requires food, water n proper rest for the body to function. So that the engine can keep on running good, n the car needs oil to keep all its metals running smoothly n that brings us to the most important element of all of these 4 human elements. N that is the Spiritual Element Experience, without knowing who created your spirit or soul, life can definitely feel like a storm every single day of our lives. So that’s why it’s important for a leader of a home, a nation, a country, of a Church or Congregation or Government to teach the Scriptures in every aspect of our lives, where we interact with humans, because it’s a very vital n essential part of our human element. N as we see not just world hunger, but mental hunger, physical hunger, financial hunger but most important of all spiritual hunger. N all of those started with only one of the 4 human elements. Mental Fitness, Physical Fitness, Financial Fitness and Spiritual Fitness, if you have all four balanced your good, so the results is a Successful Life and a Fun filled life. But for those who don’t well, its here now available to you if you need it. Personal Growth, Financial Growth, Mental Growth, Physical Growth, Spiritual Growth n Global awareness growth. Just train your selves, because the tools are available. But most important ly help make a Difference for a Better Future for our next generation of Leaders, so we could all fulfilled our Heavenly Fathers WILL, in our Lives and others. I say all of these things in Jesus Name Amen and Amen. I am not saying forget the past, but it’s more important to improve our past mistakes n learn from our failures it’s a vital cure 4 success.

  3. I have the ultimate respect for Warren Buffett. I actually try to be as humble as Warren Buffett. Because he he is very wealthy, but he is so down to earth. He is so blessed with all of the 4 necessary elements of the human being. So that’s why he can interact with the rest of the human Race. Because his parents taught him that. Thank you, Warren Buffett. I always remember your story about your childhood upbringing especially with your mom during the depression, and how you never used that as an excuse to feel sorry for yourself, but you have not only used your childhood experience to keep you humbled, but you have also learned to strengthen yourself, mentally, physically, financially n spirituality. N I have admired you for it. N I could relate to your mom, as a mom myself. I am so grateful to her for racing such a humble, kindred spirit as Anne of Greengables, would say. Thank you…so much. Maybe they should give an Award for those who helped strengthen the Economic Challenges, by Using there past failures 4 there future success like Warren Buffett. Bill Gates is helping with ccleaning water over in Africa. N I love fb, CEO, Mark Zuckerburg for donating to Ebola. Buffet that’s why I love to eat buffets, because it’s named after Buffet. Looolllll.

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