People may be surprised to know that most people worry about money and have concerns about finances. Even those people that most would assume have no issues with the money think about the future and what is going to happen. Some of the best advice about personal finance has come from those that have come from nothing and made their way in the world. Here is a compilation of 26 tips about personal finance from some famous people, some you may expect and some might surprise you.
- P.T. Barnum spoke about the slow and steady accumulation of wealth. His thoughts were systematic and unyielding. It was his belief that saving was easiest when keeping the ultimate goals in mind.
- Henry Ford spoke in quite the opposite manner about money. It was his belief that in the early years every single dollar made should go back into the system and strengthen it. If a child made $3 selling lemonade, the Ford would have had that child spend the same $3 on more lemons and sugar.
- It may seem that the first two tips go in contradiction to each other. The idea behind Henry Ford’s thoughts was not that every single dollar should be re-invested, but that early in life should be concentrated on the future and not on frivolous items.
- Eleanor Roosevelt spoke on the ills of wishing for something and taking no action. She believed that the time spent day dreaming about what we want should be spent in planning to get these things.
- Spurned from the previous idea is a twist on hindsight. While it is said that hindsight is 20/20, it can be of use. There are many times when a person will look back and wish that a certain day in their past they had made a different choice. If we bear these past moments in mind during our everyday lives then we may make better choices. Try to think of each current moment in the respect of how we will feel about our choices 20 years down the line.
- Sir John Templeton spoke about continuing to do the same things over and over. It brings to mind an anonymous quote that defined insanity as doing the same thing over and over again and expecting different results.
- Andrew Carnegie spoke to the contrary of the adage about not putting your eggs in one basket. He insisted that one can and should put all their eggs in one basket and then give that basket all of your attention.
- Donald Trump has undoubtedly made a name for him in finance and has a good bit of advice. His first and foremost piece of advice was to trust your instincts when it comes to money.
- Trump also went into detail about walking away from some investments. He spoke about the money saved from not making bad investments as if it was money earned.
- Trump’s last bit of advice was to stay in the realm of your knowledge when it comes to business. If you are a plumber, then make your money through the plumbing industry.
- Henry Ford also spoke about money as an avenue to other things, rather than the goal itself. Concentrating on what you want to get, rather than the money itself is the key to success.
- A famous businessman by the name of Warren Buffett talked at great length about frivolous spending. He said that the only good purchase is one that you intend to keep at least 10 years.
- Mark Cuban, another famous businessman said that the key to making money is getting control of your personal spending first.
- Rockefeller believed that using a good portion of personal and professional profit to help others was the key to continued success.
- From the world of politics, James Burgh said the key to maintaining a good financial base was the plan for the worst possible situation.
- Mark Twain often talked ill about the stock market and while this may or not be true, it is important to never invest any money that you cannot afford to lose. This includes any type of investment, not just the stock market. If you are trying to use investments as a last ditch effort to alleviate debt, then you will only increase your debt.
- It is important to never overspend a windfall. Every person and/or family has occasional luck that brings in extra money. That amount is finite and no one should ever spend more than that amount believing that more luck is coming.
- Bill Gates talked about the economic fact that every person spends a certain percentage more money than they have earned. Whether this is through credit or just deferring bills. This will only create more and more debt and can never end well.
- Almost any person in business today that has made any money at all will tell you to follow what is popular in the way of business and to NOT continue on the same project indefinitely. This is true for personal finance also. Every money making activity has a shelf life.
- Steve Jobs was quoted once about knowledge of one’s finances. He spoke about his amazement that most people could not tell you their current bank balance or how much money was spent every month on common bills.
- At a business conference several years ago, Lee Iacocca stated that everything you buy is another object that you cannot buy.
- It is amazing the efforts that people can put into finding money when there is an emergency. If this same effort and mindset can be brought into everyday life, everyone would be rich.
- Abraham Lincoln said that there is never a reason to not act responsibly.
- Henry Ford was known for saying that time is an asset too and that it can have a specific value placed on it. When performing a function that draws on a skill set you specifically have, remember that your time is worth money.
- Donald Trump reminds us to never blame another person for not performing a task the way that you would have done it. Instead, if it is important, do it yourself.
- Almost all business people agree that in order to make money, you have to spend money first. Everything is worth what you pay for it.
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Sharon Ho is a finance writer and has been featured in many magazines and newspapers. Read her latest article featured at Kanetix on how to choose a mortgage lender.