Learn Financial Management For Becoming Rich & Leading a Successful Life (in Urdu and English)
Javeed Chaudhry is one of my most favorite column writers. He wrote a beautiful column about financial management on Sunday, 7th December, 2014 in daily express. I have tried to share key ideas of his column with you. You can read his complete Urdu column too below this post. Warren Buffet is a renowned investor of the world. He resides in Ohama, a city of USA.He is CEO of 9 big companies of America. He has been among the top 10 richest people of the world from 2000. He is a self made person as his parent were very poor. He is born investor. He started earning by supplying coca cola. At present his assets are above 74 billion dollars. In spite of billionaire person he is leading a simple life. He is living in an old house of 5 rooms, which he bought in 1958. He has no servant at home. He has presented six golden tips/principles for investment, financial management and becoming rich. These financial management principles have helped him a lot in becoming a successful man. If you want to learn financial management then read Warren Buffet’s 6 principles about financial management care fully and act accordingly.
His first principle is about income. He says that a man should not depend upon a single income source. One should have an alternative source of income for avoiding economic pressure in the recession period. So try to make two to three different sources of income. Wife and husband both should work and their job or business should be different. If one person in your home is doing job than other should do business. You should reinvest at least 70 % of your income.
How To Become Rich By Learning Financial Management (Urdu & English)
Second principle of Warren Buffet is about your expenditures. He is of the view that one should buy just necessary items of daily use. He gives an example that people who buy thing without need have to sell many important thing in the life to buy the thing they really need. We should ask our self before buying anything that either we really need it or not.
His third principle is about savings. He says that majority of us think that saving is the amount which lefts after expenditures, while the right strategy is that we should spend that amount which lefts after savings. When you enter in the practical life, take a decision that how much percentage of your income you will save every month. Once you will decide this then on wards when ever you earn money separate your saving first and then spend the rest of amount. This a practical and successful formula which will bring results in short period of time.
His fourth principle is about investment. He says that he never put his all eggs in one basket. He says that we should not even invest our saving in a single sector because in case of any crisis, we will lose all our savings. So make a list of 8 to 10 different fields and spread your investment in all these fields.
His fifth principle is about risk. He want to make us realize that there is a difference between suicide and taking risk. In spite of learning from our mistakes, we should try to learn from mistakes of other people. So always take calculated risks after proper search and avoid overconfidence.
His last principle is about our expectations. Honesty is a precious gift and we should not expect it from cheap people. We are deceived in life just because of trusting blindly on every one. So never trust on any one blindly. Always take your decisions carefully. Complete the all necessary documentations before relying on any one. I hope that you will like these financial management tips by Warren Buffet. Stay in touch with us for reading self help articles.