15 of the Best Money Lessons From Global Top Investors

15 of the Best Money Lessons From Global Top Investors

The world revolves around money, and everyone is affected by the current system of money. The power of the dollar is demonstrated in everyday life, all around us. Countries borrow debt from bodies such as the IMF and World Bank. Citizens borrow loans from banks and other institutions. It’s not the borrowing but what you do with what you’ve borrowed.

In this quick money lesson, we will share insights from some of the leading global voices in investment and entrepreneurship. These lessons on investment, money, and wealth are not usual in your ordinary classroom. However, these are some of the most important lessons that any student in the school of life needs to learn. Let them motivate you and serve as a guide for your future financial well-being.

We’re diving in right now!

#1 Never Let Money Sit Idle – Warren Buffett

Warren Buffet, the “Oracle of Omaha”, and oh he frugolous investor has quipped that “Cash burns in a fire called inflation. Put your money to work.”

For young investors and students, the allure of letting your cash pile up in the bank is ever so exciting. After all, what’s more exciting than a bunch of zeros at the end of your account balance?

But letting your money sit idle in the bank is a terrible idea since inflation burns right through it. That means that as the cost of goods increases, your money doesn’t. In the future, you won’t be able to buy as much as you can right now with the same money that you hoard (excuse, keep).

Buffet recommends low-risk investments such as mutual or high-index funds if you don’t have a ton. If you do have a ton at your disposal, try high-yield savings accounts to earn a quick yearly return.

#2 Time is Your Most Valuable Asset – Mark Cuban

For billionaire Maverick owner Mark Cuban, “The best investment you can make is in yourself. Learn, grow, and build your skills.” What does that mean for a young investor who is going through college and already thinking of ways to build investment?

Even if you don’t have money to invest presently, time is your greatest asset. It’s like using a website like Essay Writing Service UK Royal Writer to up your writing game. You can do it by studying by yourself, but it helps you make the best of your time.

Invest time in education, mentorship, skills, and relationships. These are “seeds” that will sprout and eventually grow wings in the fullness of time. Invest especially in personal development as this is the engine that will power everything else.

#3 Invest in What You Understand – Peter Lynch

Lynch is a guru par excellence who managed unimaginable returns during his tenure at Fidelity Investments, from 1977 to 1990. Within the period, his fund at the company – the Magellan Fund – increased its Assets Under Management from $18 Million to $ 14 Billion. He must have cracked the code somewhere along the way.

Lynch’s advice goes something like “Know what you’re buying, and why. Don’t chase hot trends you don’t comprehend.”

For young folks who are new to the investment game, there are all kinds of “hot” options touted as being the next best thing. Crypto, REITs, and stock index funds…you name it. Which of these should you go for?

Lynch recommends starting simply. Go for investments you understand like index funds. In the stock market, choose companies whose products you understand and use. Always research everything before venturing into complex options and closing that deal.

#4 Don’t Fear Volatility – Ray Dalio

One of the most well-known hedge fund managers of our time – Ray Dalio – is someone whom every investor worth their salt should listen to. With global investment perspectives spanning over five decades, he says that the only thing to fear is fear itself.

“Market fluctuations are inevitable. Learn to manage risk and stay invested for the long term.” Translated for young investors, that means not to panic and sell in downturns. Your investment goals should be calculated and long-term, expectant of such rises and falls. He also recommends having a diversified portfolio to navigate volatility comfortably.

#5 Live Below Your Means – Dave Ramsey

Probably one of the most important money lessons that any young person needs to learn is to live within their means. Radio show host and New York Times bestselling author Dave Ramsey echoes this sentiment best. “Spend less than you earn, save the rest, and avoid unnecessary debt.”

That’s easier said than done for youthful investors. The goal is to develop healthy financial habits as early on as possible. Track your expenses, create a budget, and prioritize saving. Even the smallest amounts matter.

#6 Automate Your Finances – Suze Orman

Orman is a famed financial advisor and podcast show host who is an evangelist of automated systems. She recommends “Set up automatic transfers to savings and investments. Pay yourself first!”

In a world where money is digital-first, there is no excuse for not automating your finances. Automation makes you disciplined and quick in your actions and intentions. Fill-out standing orders to automate transfers to savings and investment accounts. This quickens decision-making and ensures that you contribute consistently.

#7 Build an Emergency Fund – Barbara Corcoran

You probably know Barbara Corcoran from Shark Tank, so no intros needed here. The millionaire with a wonderful personality advises to “Have a financial safety net to cover unexpected expenses and avoid debt.”

If you are employed or have a source of income, aim to save 3-6 months’ worth of living expenses as an emergency fund. This provides peace of mind and financial security.

#8 Knowledge is Power – Charles Schwab

The Charles Schwab Corporation has nearly $7 trillion in Assets Under Management and a net worth of tens of billions of dollars. Even his name screams “knows a lot about money” so you should pay double attention.

Like that statement, his belief is echoed as “The more you know about your finances, the better equipped you are to make informed decisions.”

For a young investor, knowledge is power and empowers you to manage your money more effectively. Therefore, educate yourself on personal finance, investment basics, and different financial products.

The Bottomline

If you are a student in college trying to make sense of it all, we’ll summarize it for you. Stay updated on financial trends, investment strategies, and economic news and conditions. Learn continuously to adapt and make informed decisions in an ever-changing environment.

Remember, these are just starting points. Apply these lessons to your unique circumstances, write out your financial goals, and increase your risk appetite. One way or the other, you will succeed!

About the author

Johnny is dedicated to providing useful information on commonly asked questions on the internet. He is thankful for your support ♥

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