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Warren Buffett's Ten Secrets to Wealth and Life Applied to IM
With the world economies going to shit and the US economy acting like it just had 5 hits of acid, I thought it would be appropriate to do a post on this.
Warren Buffett is the richest man in the world and he has some extremely good advice that I thought I could spin toward IM. I thought all of these points were good and I hope you enjoy them too. 1. Reinvest your profits Applying this to IM, it doesn’t mean take your profits and invest it in ebooks lol. The way I view it is like this. After you pay your bills, obligations and yourself, you should take your profits and use them to increase your net worth. Don’t go out and piss away your money on shit. Use it for something good. Put it in a high interest savings account or pay off your credit card. At least have something to show for your money instead of a whole new world of expenses. 2. Be willing to be different Warren Buffett is a guy that got rich by not following the crowds. When everyone was buying, he was selling. I think the same thing is so for IM. Don’t follow the fads that everyone else seems to chase. Do your own thing. 3. Never suck your thumb This basically means don’t be indecisive. Make a decision and start acting on it. Don’t sit around thinking about it. 4. Spell out the deal before you start This may not be the most applicable for IM, but I know with freelance writing it is important. You have to make sure everyone is on the same page and sometimes it just comes down to typing it out. 5. Watch small expenses I think this is a very important rule for personal finances. I know big expenses can add up too, but it’s the little ones that get us. It’s just $10 here and $20 there, but when you add it up at the end of the month, it’s a lot of money and you don’t have anything to show for it. 6. Limit what you borrow Debt is horrible. It’s only horrible when you actually decide you’re going to get out of it. It’s just something that is a tough battle. Interests rates are the worse, when more compounded debt moves onto your account. Don’t go into debt. It sucks ass. 7. Be persistent This is the mantra of success in IM. You just have to work at it consistently and persistently. When times are good, you have to work at it. When times are bad, you have to work at it. You always have to be pushing forward and you’ll make good money. 8. Know when to quit Sometimes you have to cut your losses. It’s just part of business. You don’t want to continuously be sinking money and time into something that just isn’t giving you that return. And it’s also not showing signs that it would ever give a return. There’s a fine line between rule 7 and 8. You have to know which side you should be on. 9. Assess the risks It’s important to know what you’re getting into and risk is one of those things you have to look at. If you sit down and objectively look at it, you’ll notice that the risks aren’t that bad. IM has probably the least risk you’ll ever run into. If you’re planning on putting your profits into the stock market, you might want to assess the risks carefully before hand. 10. Know what success really means A lot of people actually just chase something, but never really know when they got it. There’s a lot of wealthy people out there that work 80 hours a week, hate their life, but keep doing it. They don’t know what they’re after. You have to know what you’re looking for because money isn’t everything. It is an important part of life and pays for a lot of things, but it is often what you do with that money that counts. Most people want to live these great luxury lives, but they’re not as expensive as you might think. If you want to relax on a hot tropical beach, you don’t need a million dollars for that. – I hope that gives you a little perspective in these economic times. I do suggest that you have an emergency fund available. I’ve been slowly building up mine for a little while. It’s no where near what I’d like it to be, but it’s growing and I suggest you do the same. September 22 2008
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Affiliate Marketing Xpert was created for people that want to live the Four Hour Workweek lifestyle.
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