When I was in the second grade, my class had a school store. This store was filled with candy, cool pencils, toys, etc. Each week we would get a weekly allowance from doing our homework, raising our hands to answer a question correctly in class, or being good during quiet reading time. Every other Friday we could cash out our weekly allowance to buy items in the school store. We also had the option to choose to not buy items each Friday and save our allowance instead.
I chose to save mine each week.
Long story short, each week my classmates would purchase candy and the cool pencils to use each Friday. Instead, I kept a notebook that kept track of my allowance each week. As a result of not spending this allowance each Friday, I was able to save funds that enabled me to buy out the school store at the end of the school year. Cool pencils and all.
A few months ago, I was reading this article from the Chicago Tribune, called, “How to make your first million the Warren Buffett way”. For those of you who don’t know I greatly admire not only Warren Buffett’s business sense, but also his interest in philanthropy. In fact, his philosophy about giving back is what inspired to become a philanthropist myself.
I also greatly admire Buffett’s simplistic approach to life and entrepreneurial mindset. When Buffett was younger he began a pinball machine business. Instead of spending the profits from this business on things teenagers would normally, he reinvested his profits. Along with reinvesting his profits to buy additional machines to grow his business, he avoided amassing debt and taking out loans.
In fact, one of the most fascinating things about Buffett is that he’s a 65 billion dollar man, and yet, he still lives in his Omaha, Nebraska home which he bought for $31,500 back in 1958.
This simplistic approach to finances is something I’ve greatly incorporated in my own life. Here are a few financial tips I now practice:
I became a Walmart Shareholder back in August. One of the reasons I chose to begin investing in Walmart is because it’s a stable company with an innovative eye towards pursuing online shopping. As an employee, each dividend I make from company stock immediately reinvests into my currently holdings.
Growing a Stock Portfolio
One of the key points about growing an investment portfolio is to have patience. Portfolios should be considered as long-term investments. Instead of buying that extra mascara, consider investing this $50 into buying a share of a company you believe in and admire. As you come to increase your finances, you can slowly increase the number of shares you purchase monthly and watch your investment grow.
When I was younger I was a clothes horse who needed the latest fashion piece and believed in every trend. Nowadays, I’m in love with the old money look. I like buying classic and timeless pieces that are high quality. I spend a lot on these high quality pieces like black turtlenecks, classic white button downs, blazers, or a nude pair of pumps. One of the reasons why I spend big on basic pieces is I don’t want to keep purchasing these pieces after a few years. I want these quality pieces to last for decades even. Check out my post on Minimalism Style.
Featured Image: Via Business Insider