Warren Buffett, fourth richest man in the world worth over $50 billion and donates $ 30 billion for charity lives in a 55 year old house that consists of just 5 bedrooms. Had he wanted, he could have lived in 20 bed roomed villa.
Is he a miser? Stingy?
No. He knows besides creating money, he knows how to avoid unnecessary extravagance . This prudence and frugality makes him richer by day even today.
It’s only who become rich by winning a lottery will throw their money ultimately reaching back to square No. 1
When I started this topic I thought of a live example of a very poor laborer in our town who had a small piece of land , a longish piece on which he had one room house which nobody would buy.But a couple of years ago the land was acquired by the corporation for widenig the road and he got a compensation of more than 3 lakh rupees for 4 cents of land . He and his family instead of investing in land or at least investing it, blew up the entire money in a matter of 3 months and now are back to square one, working on construction sites ...
When I started this topic I thought of a live example of a very poor laborer in our town who had a small piece of land , a longish piece on which he had one room house which nobody would buy.But a couple of years ago the land was acquired by the corporation for widenig the road and he got a compensation of more than 3 lakh rupees for 4 cents of land . He and his family instead of investing in land or at least investing it, blew up the entire money in a matter of 3 months and now are back to square one, working on construction sites ...
When I started this topic I thought of a live example of a very poor laborer in our town who had a small piece of land , a longish piece on which he had one room house which nobody would buy.But a couple of years ago the land was acquired by the corporation for widenig the road and he got a compensation of more than 3 lakh rupees for 4 cents of land . He and his family instead of investing in land or at least investing it, blew up the entire money in a matter of 3 months and now are back to square one, working on construction sites ...
@ rambabu
Those who are not aware of frugality will often ridicule a person as a Miser. And such people are destined to land in the garbage bins ultimately.
Such people never had money and when they get it they don't know what to do with it. There is a reason why a rich man gets richer. He know how money works. He will always buy assets first and reduce his liabilities.
When I started this topic I thought of a live example of a very poor laborer in our town who had a small piece of land , a longish piece on which he had one room house which nobody would buy.But a couple of years ago the land was acquired by the corporation for widenig the road and he got a compensation of more than 3 lakh rupees for 4 cents of land . He and his family instead of investing in land or at least investing it, blew up the entire money in a matter of 3 months and now are back to square one, working on construction sites ...
@ rambabu
Those who are not aware of frugality will often ridicule a person as a Miser. And such people are destined to land in the garbage bins ultimately.
Such people never had money and when they get it they don't know what to do with it. There is a reason why a rich man gets richer. He know how money works. He will always buy assets first and reduce his liabilities.
One need not be a miser but be balanced and learn how to manage money effectively so that it works for you. I agree that unless you respect money and take care you may be in the red most of the time cursing everybody else and your fate...
@Usha, you are right, people who have had money for generations learn to respect it and use it wisely but the nouveau rich who suddenly come into money are all going overboard trying to spend it as fast as they can. It is the case with people from middle classes who started earning hoards of it thanks to IT boom and people with lands whose lands were bought for development, these people show no respect for money and spend it in malls, trying to show off their possessions, cars etc. Of course there are exceptions to these!
@Usha, you are right, people who have had money for generations learn to respect it and use it wisely but the nouveau rich who suddenly come into money are all going overboard trying to spend it as fast as they can. It is the case with people from middle classes who started earning hoards of it thanks to IT boom and people with lands whose lands were bought for development, these people show no respect for money and spend it in malls, trying to show off their possessions, cars etc. Of course there are exceptions to these!
Very true Kalyani ! I feel that we need to include a bit of economics and money management in our school syllabus like they have in western countries. It goes a long way in preparing children for financial responsibilities. Parents too can do it so easily by giving a piggy bank and later opening a junior account where tey can deposit their pocket money, birthday gift or any small amount we may give them from time to time. Children feel so proud of their own bank accounts.I remember my own children sitting together and discussing how much of savings each of them had in their accounts and working towards enhancing it...
@Usha, you are right, people who have had money for generations learn to respect it and use it wisely but the nouveau rich who suddenly come into money are all going overboard trying to spend it as fast as they can. It is the case with people from middle classes who started earning hoards of it thanks to IT boom and people with lands whose lands were bought for development, these people show no respect for money and spend it in malls, trying to show off their possessions, cars etc. Of course there are exceptions to these!
Very true Kalyani ! I feel that we need to include a bit of economics and money management in our school syllabus like they have in western countries. It goes a long way in preparing children for financial responsibilities. Parents too can do it so easily by giving a piggy bank and later opening a junior account where tey can deposit their pocket money, birthday gift or any small amoudnt we may give them from time to time. Children feel so proud of their own bank accounts.I remember my own children sitting together and discussing how much of savings each of them had in their accounts and working towards enhancing it...
Yes that's a very good idea. Schools should have some kind of financial educational classes in their curriculum. The irony is that we study to get good marks so we can earn good money later. They teach us all kinds of subjects expect the most important of them all, about finance.[/quote
We are introduced to the concept of saving in our childhood first in the home. The very idea of "Piggy Banks" indicates, if such habits are introduced in the formative years in the home will a go a long way.
Credit cards are also a bad influence for these kinds of people. They buy all kind of expensive things when they first see it, through their credit cards. They fail to think about it's consequences on their monthly budget.
Credit cards are also a bad influence for these kinds of people. They buy all kind of expensive things when they first see it, through their credit cards. They fail to think about it's consequences on their monthly budget.
Credit cards are aptly termed as "Debt Traps" by none other than the fourth richest man in the world and investment Guru, Warren Buffett. This says it all.
Credit cards are also a bad influence for these kinds of people. They buy all kind of expensive things when they first see it, through their credit cards. They fail to think about it's consequences on their monthly budget.
Credit cards are aptly termed as "Debt Traps" by none other than the fourth richest man in the world and investment Guru, Warren Buffett. This says it all.
Yes he is the financial wizard. And he knows best. It's true the banks providing credit cards want you to be in their debt so they can earn interest from you and fill their pockets. Most people are ignorant about this aspect.
Credit cards are also a bad influence for these kinds of people. They buy all kind of expensive things when they first see it, through their credit cards. They fail to think about it's consequences on their monthly budget.
Credit cards are aptly termed as "Debt Traps" by none other than the fourth richest man in the world and investment Guru, Warren Buffett. This says it all.
Yes he is the financial wizard. And he knows best. It's true the banks providing credit cards want you to be in their debt so they can earn interest from you and fill their pockets. Most people are ignorant about this aspect.
Flashing a credit card is being seen as a prestige symbol by many. My friend used to enter a mall only to buy a hand kerchief and often used to end up with a big bundle of clothes. This kind of impulsive buying is a sure way of digging one's own "DEBT" grave.
True both ways- some people do not want to spend the money they earned the harder way on the other hand as they say the 'neo-rich' want to show their money-power by spending it lavishly, sometimes vulgarly. In most cases spoiled brat of the neo-rich make sure everyone knows they have money even if it stinks.
@kiran8