Becoming Rich Is Easy! Warren Buffett reveals secret, says don't spend money on...

India.com

19-07-2025

Becoming Rich Is Easy! Warren Buffett reveals secret, says don't spend money on…
Warren Buffett Saving Tips: In today's life, salaries are less, and expenses are more, due to which people are not able to save money for their future. Amidst the increasing expenses, it has become difficult to spend money wisely. In the social media era, people, especially youngsters, are under pressure to show off on social media platforms. This is why they buy expensive cars, watches, and branded products in order to become different from other people. If you are also one of those who often spend money unnecessarily or without thinking, then you should follow the words of one of the most successful investors in the world Warren Buffett. Here are the five golden rules of Buffett, according to which everyone should avoid spending money. Never Buy A New Car
According to Warren Buffett, buying a new car is the biggest money-losing deal. He says that people who want to save money, should never buy a new car but a second-hand car in good condition. He says the price of a new car starts decreasing as soon as it leaves the showroom. It decreases every year and 60 percent in five years. Buffett himself drives a 2014 model Cadillac XTS car. Never Use Credit Cards
As per Buffett, credit card loans a web, once a person get caught in it, it becomes difficult to get out of it. In India, banks are charging 30 percent annual interest on most credit cards. Credit card users believe paying the minimum credit card payment fulfils their obligation. However, this results in interest charges and minimal reduction of the principal balance. Always Stay Away From Lottery And Gambling
Warren Buffett criticises gambling and lotteries, referring to them as a 'math tax' due to their inherent negative expected value. He argues that these activities are detrimental, diverting individuals from productive endeavors like diligent work and sound investment strategies. While initially appealing, consistent lottery participation often leads to financial ruin, fueled by the unrealistic expectation of a life-changing jackpot. Don't Buy House Bigger Than Needed
Even after earning billions of dollars, Buffett still lives in the same house that he bought in the year 1958. According to him, a bigger house means more taxes, maintenance, servants and a lot of responsibilities. Invest Only In What You Can Understand
Buffett has only one principle of investment, 'Never invest in a business that you cannot understand.' This means that you invest in the business you understand, and if you don't understand it, then investing in it is like putting your hard-earned money at risk.