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With so much advice floating around, deciding who to listen to can be tricky.
Depending on yourfinancial situation and goals, you may find that one persons advice suits you better than anothers.
So, then, which money expert should you listen to and when?
In fact, his7 Baby Stepsare all about taking back control of your money.
His 40/40/20 rule in particular is all about building wealth.
As a rough guide, 40% of your gross income should be set aside for taxes.
Another 40% should be saved.
And the final 20% should be how much you actually spend.
This maximizessavings and investingand minimizes frivolous spending.
Warren Buffett
Are you thinking about investing?
And are you at a point where you’ve got the option to invest for the long haul?
If so, Warren Buffett might be just the person to listen to.
And the second rule of an investment is: Dont forget the first rule.
And thatsall the rulesthere are.
Buffett is all about value investing for the long term.
Broken down, its kind of a set it and forget it mentality that keeps giving.
Value investing involves identifying and selecting undervalued stocks that havelong-term growth potential.
This means largely ignoring current trends, being patient and thoroughly researching stocks.
Its about seeing the bigger picture instead of focusing on in-the-moment market conditions.
Bogle is often credited with establishing the first public index fund, asimplified and less expensive wayto invest.
If youre looking for simplicity in your investments, Bogles strategy might be the way to go.
It involves diversification, which negates some of the risk involved.
But it does require sticking with it for the long haul and weathering afew stock marketchanges along the way.
Hes the former manager of the Magellan Fund at Fidelity.
His investment philosophy is fairly simple, but it does emphasize the importance of understanding what you buy.
Take his advice onreal estate investingas an example.
He suggests doing your research and sticking with systems that have been proven to work.
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