Want to Become a Millionaire? Follow Warren Buffett's 4 Rules.
As Buffett has noted and demonstrated on multiple occasions, you should “pay yourself first” by putting a portion of your funds away first.
Too many entrepreneurs go all in on the company they create and live for the promise of “the big exit.” But then it goes wrong. Even worse, some founders have done this multiple times. An expert and friend who owned 29 companies before the pandemic made a funny statement: “You can always tell the entrepreneurs in a room. They have the biggest stories. And then, nearly inevitably, they die broke.”
Statistically, the people who are most financially secure are the ones you wouldn’t expect. They are ordinary people who practiced financial discipline. They didn’t wait to save and invest until “we can afford it” (that would be never) or “when we exit our company.”
With or without advisors, they calculated what they’d need to retire and learned to put away savings first (sometimes in a hard-to-access CD or at a separate bank). Then they covered their needs.
They used the smallest share of their funds to indulge in luxuries and high-risk investments. They simply practiced and taught financial discipline consistently and early. For example, the young teen daughter of one of my friends is working a part-time job not for the chance to indulge in movie dates or brand-name fashion, but to begin her own retirement fund. Read more..
The mission of EDAC is to connect budding & existing entrepreneurs to resources for venture management & growth.