Warren Buffet's tips to be a millionaire

1. Live below your means

“Don’t save what is left after spending; spend what is left after saving,” Buffett advises. This approach to budgeting is foundation of wealth.

Adopt 50/30/20 rule to your budget(50% for needs, 30% to wants, 20% for savings)


2. The eight wonder: how compounding helps in your financial journey

"compound interest is the eighth wonder of the world.” The mathematics of compounding creates an enormous advantage for those who start early.

For example: $10,000 invested at age 25 with an 8% annual return grows to approximately $217,245 by age 65. Delay until age 30, and you’ll have only about $147,853—nearly $70,000 less.

"The stock market is a device for transferring money from the impatient to the patient,” Buffett notes. Patience is the must skill in taking advantage of compounding.


3. Invest in yourself first

"The most important investment you can make is in yourself,”
Studies consistently show that additional education and skill development correlate with higher lifetime earnings.
Learn new skills that boost your earning potential. Enroll to certifications. Be a lifelong learner


4. Debt is the enemy of wealth

“If you buy things you don’t need, you will soon sell things you need,. Buffet differs on good debt(mortgage loan or education loan which increase your earning potential) and bad debt(credit card debts, loans with high interest rate).


5. Value over speculation

“Price is what you pay, value is what you get,” . Identify stocks with high value and low price with strong fundamentals.

If you don't have this expertise, focus on low cost index fund or companies within you expertise.