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Spend first and save first, then save first and spend the rest first. - Warren Buffett

"The right way to save is not to spend the income and save the savings, but to save a portion of the income first and spend the rest"

No cash on hand? Do you have to take a loan from a friend you know every month as the salary date approaches? Or are you already stuck in debt? So let's start with this story by Warren Buffett. This will not be enough to get some relief.

Warren Buffett is the fourth richest man in the world. According to Forbes 2019, his net worth was close to $90 billion. Warren Buffett is known for being a business tycoon and generously sharing the lessons of success with others. Warren was born in 1930 to a family of politicians. The Omaha Public Library in Nebraska, USA, is where Warren's life changed. At age 7, he did not read fairy tales. He found a book, One Thousand Ways to Make 1000 Dollars. (1000 ways to earn a thousand dollars). He wanted to be a businessman, as it says. He started selling chewing gum to friends using the small amount of money he received from home. Later, Coca Cola was sold. He also worked from door to door, distributing magazines. Warren was 15 years old when he left a $35 pinball machine in a salon. The reason was that he knew that the people on the salon's waiting list were lazy. Why did you have a mobile phone at that time? I do not know. That's why he took a small amount of money and let the people there play on his pinball machine. Within months, Warren Buffett had acquired three more pinball machines and placed them in three different salons. You know, right? The business, which started at $35, was later sold to Warren Buffett for $1,200. By the time he finished school, Warren had accumulated $9,800. ($100,000 at today's value). By 2008, he had overtaken Bill Gates to become the world's richest man, with a net worth of $62 billion. Today, he is the fourth, but he has a fortune of 89 billion.

At one point, I asked him what the secret was to saving money this way. He says this is a simple theory. Exactly like this.

"The right way to save is not to spend the income and save the savings, but to save a portion of the income first and spend the rest"

But the problem for most of us is that we plan to save after spending. How many times have you visited a supermarket and had to buy other items in addition to the ones you went to buy? Maybe it's not essential at that moment. But if they do not have the money, sometimes we work to get it with a credit card. That means if you have the money, you feel like spending. For example, the concept of a supermarket comes from the fact that it is inherent in people. It's a habit of people to buy even things that they do not need, because they have money in hand. Warren says to save your money from this habit and save.

If you save a portion of your salary or income as soon as it arrives and forget about it, you will have to manage the cash on hand and play the game. If not, after spending every penny, please do not worry about how much I have saved this month. Borrow in front of someone else.

I do not save. I say this to many young people who say it is difficult. Sir, no one saves money. Saving is an investment that you need to make a habit of. I told a child who spoke like that to give a standing order to the bank to which the salary is credited and to make a system to get at least 20% of the salary to a separate account. But don't even make an ATM card for that savings account.

Because his biggest weakness was that he had to spend money if he had money. Spending what is needed and what is not is for everyone. List the requirements. It means spending according to need. Rather than worrying about not being able to save a penny this month at the end of the month, the best thing to do is to divert a portion of the cash flow to a separate deposit and forget about it and play the game at your own expense. Even if the worst place is lit, the only way to get hold of that deposit is to do so.

What I always say is that getting into the habit of doing anything good or bad is difficult. Taking a paycheck and saving first can feel like a bone of contention. But that's the way it is. Try it. If successful, in a few months, leave a message that the work is done. Because back then, it was easier for you than it was for me. Good day. Good luck then.

 

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