3 Money making and success tips from world’s richest men

Warren Buffet
Billionaire Warren Buffet. PHOTO/BLOOMBERG
The Forbes magazine has released its 2016 list of the world’s wealthiest men and women, which has 1,810 billionaires with a collective net-worth of Sh650 trillion.

With a Sh7.5 trillion fortune, Microsoft co-founder Bill Gates is the richest man on the planet. Mr Gates is followed by Amancio Ortega, the Spanish founder of clothing chain Zara, with a Sh6.7 trillion fortune. Warren Buffet comes third with a Sh6.1 trillion net worth.

This group of investors have over the years shared important lessons on wealth creation, which include:-

1.) Start small – Many of the world’s richest men and women started small. For instance, Mr Gates and Facebook founder Mark Zuckerberg – whose fortune tops Sh4.5 trillion – started their businesses from their university hostels. Google founder Larry Page with a fortune of Sh3.5 trillion started in a friend’s garage.

2.) Save and reinvest savings – Saving is a habit that anyone looking to accumulate wealth should learn and perfect it. According to Warren Buffet, an American billionaire who made his fortune by investing in stocks, people who focus on getting quick riches lose it by failing to save.

“I think the biggest mistake people make is failing to learn the habits of saving properly early,” Mr Buffet told Forbes in a past interview.

He underscored that the art of compounding riches and saving does not happen overnight.

“Money doesn’t fall like manna; it takes a long time to build and anyone looking to save should have a long term view.

Mr Buffet warns against saving for the sake of saving: “Save your money in your bank and grow it as your very first start-up capital. Then after saving it engage it in entrepreneurial exercises that will double it. Even if you lose money while growing it, you will not lose as much as you would had you not saved.”

ALSO READ: 7 Tips for success from Chris Kirubi

3.) Leverage on debt – The rich go to a bank to get capital to expand their businesses. They know how to leverage on debt to grow richer, while cautiously avoiding debts that would just pile their dues.

Mr Buffet warns against buying things that you cannot pay for.

“I have found that it is easy to prevent financial trouble than to get out of it. Staying out of debt is staying out of financial trouble,” he says.