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26 Personal Finance Tips from Famous People

26 Personal Finance Tips from Famous People

    Take a look at your wallet, and you’ll likely see some pictures of dead guys staring back at you. And it turns out that a lot of those guys had plenty of good financial advice to share. Personal financial advice is clogging up the Internet, and not all of it is good advice. However, the following quotes have been culled from some of the best-known businessmen, entrepreneurs, historical figures, and other famous people to provide you with some solid aphorisms for protecting your net worth. Pair the quotes below with our past advice about getting smarter, or with our past post about the daily habits of other famous people, and you’ll be well-prepared for any financial quandary you come across.

    Historical Figures

    “A penny here, and a dollar there, placed at interest, goes on accumulating, and in this way the desired result is attained. It requires some training, perhaps, to accomplish this economy, but when once used to it, you will find there is more satisfaction in rational saving than in irrational spending.” -P. T. Barnum

    “Many people take no care of their money till they come nearly to the end of it, and others do just the same with their time.” -Johann Wolfgang von Goethe

    “Old men are always advising young men to save money. That is bad advice. Don’t save every nickel. Invest in yourself. I never saved a dollar until I was forty years old.” -Henry Ford

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    “The safe way to double your money is to fold it over once and put it in your pocket.”  -Frank Hubbard

    “It is better to have a permanent income than to be fascinating.” -Oscar Wilde


    “My old father used to have a saying:  If you make a bad bargain, hug it all the tighter. ” -Abraham Lincoln

    “Money never made a man happy yet, nor will it. The more a man has, the more he wants. Instead of filling a vacuum, it makes one.” -Ben Franklin

    Celebrities

    “A bank is a place that will lend you money if you can prove that you don’t need it.” -Bob Hope

    “You [can] use your money to buy privacy because during most of your life you aren’t allowed to be normal.” -Johnny Depp

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    “Too many people spend money they haven’t earned, to buy things they don’t want, to impress people they don’t like.” -Will Smith

    Writers

    “There’s no money in poetry, but then there’s no poetry in money, either.” -Robert Graves

    “It is the part of a wise man to keep himself today for tomorrow and not to venture all his eggs in one basket.” -Miguel de Cervantes

    Foul cankering rust the hidden treasure frets,

    But gold that’s put to use more gold begets.
-William Shakespeare

    “October:  This is one of the peculiarly dangerous months to speculate in stocks.  The others are July, January, September, April, November, May, March, June, December, August and February.” -Mark Twain

    “You can only become truly accomplished at something you love. Don’t make money your goal. Instead, pursue the things you love doing, and then do them so well that people can’t take their eyes off you.” -Maya Angelou

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    Political Figures

    “It is an elementary and vital courtesy when you are using people’s own money against them that you do it with some grace.” -Richard Neely, WV Supreme Court

    “Money is the mother’s milk of politics.” -Jesse M. Unruh

    “In prosperity prepare for a change; in adversity hope for one.” -James Burgh

    “It takes as much energy to wish as it does to plan.” -Eleanor Roosevelt

    Businessmen and Entrepreneurs

    “God gave me my money. I believe the power to make money is a gift from God . . . to be developed and used to the best of our ability for the good of mankind. Having been endowed with the gift I possess, I believe it is my duty to make money and still more money and to use the money I make for the good of my fellow man according to the dictates of my conscience.” -John D. Rockefeller

    “The four most expensive words in the English language are, ‘This time it’s different.'” -Sir John Templeton

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    “If you can, you will quickly find that the greatest rate of return you will earn is on your own personal spending. Being a smart shopper is the first step to getting rich.” -Mark Cuban

    “Only buy something that you’d be perfectly happy to hold if the market shut down for ten years.” -Warren Buffett

    “Put all good eggs in one basket and then watch that basket.” -Andrew Carnegie


    “Experience taught me a few things.  One is to listen to your gut, no matter how good something sounds on paper.  The second is that you’re generally better off sticking with what you know.  And the third is that sometimes your best investments are the ones you don’t make.”  Donald Trump

    “If money is your hope for independence you will never have it.  The only real security that a man will have in this world is a reserve of knowledge, experience, and ability.” Henry Ford

    Conclusion

    People have been trying to find the best financial advice ever since the first coins were minted millennia ago. Not every famous person gives great advice about managing money, but the quotes above will definitely serve you well as you build your net worth.

    What was the best financial advice you were ever given? Tell us in the comments below, follow us on Twitter, or take the conversation over to Facebook.

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    Tucker Cummings

    Writer and social media professional sharing productivity tips on Lifehack.

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    Last Updated on April 28, 2020

    9 Millionaire Success Habits That Will Inspire Your Life

    9 Millionaire Success Habits That Will Inspire Your Life

    As technology evolves and information becomes more accessible, it has also become more challenging to define success. A lot of people are trapped in the rat race while trying to discover the actual formula for success.

    You could become overwhelmed with what tools, techniques or philosophies to imbibe while trying to get tips over the internet. At every click and turn, there are ‘how-tos and quick-fix’ on how to become successful overnight. You will find several courses, articles, videos and books on how to achieve financial success.

    But what if I tell you it doesn’t have to be complicated as people made it out to be? What if you could achieve success by merely following these 9 millionaire success habits?

    1. Read for Personal Development

    A daily habit I have discovered millionaires share in common is reading. For instance, if you are an entrepreneur, you need to read to become an efficient leader and a productive business owner. Reading helps you to grow and learn without going to a business school.

    A research conducted by Thomas Crowley indicates about 85% of self-made millionaires read at least two or more books each month. [1] Warren Buffett is one of these examples. He spends 80% of his day reading. In the early days of his investment career, he would read 600 to 1000 pages in a single day.

    While millionaires sometimes read for pleasure, they also learn to improve themselves. They read topics on leadership, how-tos, self-help, biographies, lifehacks and also follow current events.

    Here’re some recommendations for you: 25 Best Self Improvement Books to Read No Matter How Old You Are

    2. Establish Multiple Sources of Income

    Another success habit I noticed about successful people is that they don’t depend on a single income source. Every millionaire possesses multiple sources of income. This helps them to manage economic challenges and also make more money.

    They are passive income addicts. They earn interests from loans, rental income from real estate, royalties from intellectual properties, dividends from investments. They also launch a side business or run a website or sell information products.

    How income is made either passively or actively is what separates the successful from the wannabes. They are always learning ways to build multiple streams of income.

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    3. Live on a Stipulated Monthly Budget

    An average millionaire does not believe in luck and jackpot. They take the time to understand cash flow-income and expenses. Based on this, they establish a monthly budget and religiously stick to it.

    The essence of the budget is to minimize unnecessary expenses. This will help you gain complete control of your financial life. Budgeting helps you to avoid overspending to achieve your financial goals. Here’re some tips to help you stuck to your budget: 32 Hacks for Sticking to Your Budget

    4. Manage and Maximize Money

    The most significant education for a millionaire is financial intelligence. Nobody attains financial freedom without gaining financial intelligence. This is the more reason millionaire, regardless of their income, keep their knowledge about tax strategies updated.

    They always seek to reduce their tax bills. One approach they employ is by living or incorporating their business in states with no income tax.

    Do you know that about 60 companies paid $0 legally in the 2018 tax year? Some of these companies that ‘avoided'(note: not evaded) federal income tax include Chevron, Amazon, Halliburton, General Motors, Delta. Their US income was totaled at $79 billion with an effective tax rate of -5%.

    What’s the deal? They got a tax refund.

    How do they accomplish these?

    An ITEP report indicated that they have the culture of throwing huge sums at tax experts who assist them in discovering creative, as well as convoluted means of paying little tax as much as possible.[2]

    5. Avoid Debt

    Another habit that separates the millionaires from the rest of the world is how they manage debt.

    They don’t live an extravagant lifestyle; instead, they only buy what they need and can pay for. They do not book hotels and flights by using their credit cards to pay for them.

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    They are conscious of the interest rates even when they use credits cards or take loans. If possible, they try to pay with cash because of its zero percent interest rate.

    6. Set Daily Goals

    It does not matter if they are setting up a business, a career, or financial projections; they have the success habit of setting short term goals. They plan daily and weekly goals to generate momentum in achieving their long-term goals.

    Ensure you prioritize when setting daily goals. This will help you to achieve the most important to-dos on your list.

    Setting priorities will help you to focus on highly rewarding activities. If you desire financial freedom, it is wise to pursue activities that earn you thousands of dollars rather than hundreds of dollars.

    7. Don’t Act Rich

    The goal is not to act rich but to be productive. Interestingly, Thomas Stanley buttressed in his book that for the most prestige brands of cars, about 86% percent are toys of the non-millionaires. While most believe that people with huge fortunes tend to drive exotic cars, in reality the largest consumers of pricey cars are aspiring millionaires.[3]

    According to findings by Experian Automotive Researchers, 61% of individuals who earn $250,000 or more rarely buy luxury brands. Instead, they buy Hondas, Toyotas, and Fords like the rest of the world. The reason is they are not ready to spend money on premium cars that tend to drop in value in a couple of years as it would cost money. Millionaires invest in assets that appreciate.[4]

    8. Own or Buy Businesses

    In Robert Kiyosaki’s cashflow quadrant, he divided how you earn income into four quadrants. The E and the S quadrants take the left position while the B and the I are on the right side. According to Robert, it is possible to be on all quadrants, but the millionaires are not.[5]

    • E stands for employee – they work for others
    • S stands for self-employed – they work for themselves
    • B stands for a Business owner- employees work for them (500 or more employees)
    • I stand for Investors – Money work for them like Warren Buffet.

    Your goal is to move from the left quadrant to the right quadrants where you own big businesses or make money work for you.

    It is possible to become financially successful by pursuing what you love. For instance, if you love writing, aspire to be the best seller. Wealth and passion work together.

    Check out How to Start a Small Business with Little to No Money for tips.

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    9. Avoid Get-Rich-Quick Scheme

    A millionaire holds patience as an essential virtue. It takes patience to become successful, not only in finance but in every aspect of life. While it is possible to become financially successful at an early age, most millionaires hit it at age 50. They live a moderate life, invest in their future and retire rich.

    Bonus: How to Develop the Millionaire Success Habits?

    Having learned these habits, the next question is,

    How can I develop the Millionaire Success habits?

    Here are six values you will need to develop:

    Establish Your Life Vision

    You need to be clear about what you want in life to set yourself for a life of success. Your vision has to go beyond becoming a millionaire to understanding why you want to become one. Any great entrepreneur you will ever find has a clear vision and an established mission.

    Understanding why you are doing what you do will drive you to become the kind of successful person you want to be.

    Make Your Passion a Profession

    When your passion becomes your profession, work becomes pleasurable. Loving what you do enables money to flow to you and through you.

    So what’s going to be? Wake up every morning by speaking positive words into your work, love what you do, and focus on the work that brings you joy.

    Take a look at this article and learn how to make it happen: 5 Steps To Turn Your Passion Into A Career

    Focus on Solution

    Focusing on the solution means establishing the problem that you or your business address. This will help you focus on the solutions when others are faced with challenges.

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    A millionaire has a mindset that is fixed on the solution. He or she knows there’s a way out, and that every problem is an opportunity in disguise.

    Improve your problem solving skills with these tips: 6 Effective Ways to Enhance Your Problem Solving Skills

    Develop Your Leadership Skills

    Leadership skills are an asset that is indispensable if you want to develop a millionaire success habit. The more you hone your leadership skills, the more you will attract leaders who share your values.

    Be Growth-Focused

    Millionaire entrepreneurs prioritize self-improvement. Here’s how to achieve it:

    • Get a coach. Coaching will impact your life, and you will achieve peak performance in life and business when you have a life coach.
    • Be coachable. It is not enough to have a coach; you must be coachable. Sometimes, you need feedback and counsel to reposition your life and business. A coach has the wisdom and experience to counsel you from a higher perspective. The more you receive feedback and work on yourself, the more you become better at what you do and who you are.

    Flip Your Thought Pattern From Acting To Being

    It is not enough to have a millionaire success habit, you must also become a person of positive influence. This is how you can become significant. Bill Gates is not only rich; he is changing lives in Africa and different parts of the world.

    If you want to become successful, you must first be and think like a successful person. This is how resources you need can flow into your life.

    Here’s a final thought from me:

    It is not enough to do something to have something; success is about being someone who possesses what is needed to take positive and inspired actions.

    More Success Habits

    Featured photo credit: Austin Distel via unsplash.com

    Reference

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