Achieving financial success starts with learning some effective practical money skills. So who better to take note from than some of the world’s most financially successful individuals? Continue reading to learn about practical money skills from successful people that you can then apply to your own financial journey.
7 Practical Money Skills for Financial Success
1. Keep Your Investment Fees Low
In his annual letter to shareholders, billionaire Warren Buffet emphasized the importance of keeping the fees on your investments low. Essentially this means that you may be able to invest more over time while avoiding the big money-losing strategies of many active traders.
His advice comes down to a simple statistic: Don’t spend more than 0.15% a year on management fees.
2. Take Risks
Facebook CEO Mark Zuckerberg believes that the world changes so quickly and the biggest risk an individual can take is not taking any risk at all. There are more chances of failure for individuals or companies who don’t adapt to these changes. If you want to get your fair share of success, you need to go out of your comfort zone to better cater to the current demands of the economy. That said, take educated risks that are thoughtful and considered, not reckless ones.
3. Find Your Passion
Media executive and billionaire Oprah Winfrey believes that finding your passion is a key to success. She has said that finding your true calling is the first step towards success. Blake Mycoskie, the founder of Toms, also believes that following your passion will most likely give you genuine success rather than just chasing after money.
Sure, as part of the working force, it is hard to worry about following you passions while you have an ever-looming to do list of things that demand your time. However, finding a way to make money while being passionate about the work you are doing can be incredibly rewarding. It can even enhance your drive to succeed.
4. Be Optimistic
There is no easy way to achieve success. Microsoft founder and billionaire Bill Gates said success is a lousy teacher. Success can be very tricky to define and most people fail many times before reaching their goals. Keep in mind that past victories do not always guarantee future success. In order to become successful, you need to keep learning and always be optimistic.
5. Investing At a Young Age Brings Huge Advantage
Kevin Cleary, CEO of Clif Bar & Company, wished he understood the power of investing during the earlier days of his life. He explained how in his younger years, he had fewer expenses and more time to learn about investing. He believes saving is important, but while he was busy saving for his future, he missed the opportunity to leverage his savings by not investing earlier.
6. Be a Real Problem Solver
Jeff Bezos, founder and CEO of Amazon, learned the most important skill for his success through his grandfather. He recalled spending his summer days at his grandparent’s home and saw how self-reliant his grandfather was. He observed how his grandfather was able to solve problems on his own. Eventually, he adopted this skill.
Being able to find solutions to problems is an important ingredient for success. It will bring out the resourcefulness in you and will open you to important life lessons while allowing for money-making possibilities to come to light.
When it comes to learning about financial success, you need to take it from the experts themselves. Every person who has ever succeeded financially had to start somewhere and many worked hard to get to where they are now and achieve what they have. So why not you? While success is different to all of us, it doesn’t hurt to keep these skills in mind while paving our roads to success.
Which among these practical money skills is your favorite? Share your thoughts with us in the comments section below.