By 
When I decided to be financially free, I knew nothing about it. I was a farmer from a small town in Louisiana. I had never taken a finance course. Also, I didn’t know anything about investing!
But I had a great advantage. I met a man who had created enormous wealth, a human wealth machine, a man who, at a very young age, achieved financial freedom. He became my virtual mentor and taught me everything I know.
In the years since, my wealth has multiplied many times over by following his simple advice. In this article, I want to tell you about some of the most important things I learned about building wealth from Warren Buffett. I won’t tell them all… just some of the principles.
Let’s start with some of the lies about creating wealth. At one time or another, I have heard the following alleged “facts”:
The secret to getting rich is to take big risks.
The average person cannot become rich. You need special knowledge or influential friends.
Demographics determine outcomes. If a person is born poor, he will remain poor.
Do any of these “truths” sound familiar?
If so, then the following list is for you. Here is what I know, from my own experience in becoming financially free, to be true about building wealth:
Truth No.1
You will never be financially free unless you understand the fundamentals of saving, spending, and investing. There is nothing in this world that is worth the price of not knowing the basics of money.
Truth No. 2
The most important factor in creating wealth is the size of your investment capital. Investment capital is what you have left over each month after you have taken care of necessary expenses. These are your seeds. Seeds to plant to earn more dollars. The more seeds you have to plant, the more dollars you will grow.
Truth No.3
Building wealth is simple. It doesn’t require luck, genius, or special connections. As John Bogle wisely said, “The secret is that there are no secrets.” The truth behind how to create wealth is common knowledge, easy to understand, and no one should get rich by selling it to you.
In fact, it’s so simple that it can be explained in just two sentences…
Earn more than you spend and invest the difference wisely.
Develop simple daily habits that result in the accumulation of wealth.
The only thing left is to take action… and that’s where the problems arise.
Procrastination is the number one wealth killer. You plan to get it one day. You know what you have to do, but there is always some other priority. The kids need braces, the car needs fixing, the kitchen needs remodeling.
The reason so few people achieve wealth is because they don’t start to adopt habits and take the necessary steps that lead to wealth.
Habits are the reason average people become millionaires while lottery winners go broke.
They don’t earn more. They are not the smartest. They don’t have any special training. They just have good money, simple clothes.
The reason good money habits are essential is that money accumulates. Small amounts saved and invested over long periods of time can generate massive results. It’s an easy path to wealth.
The formula for wealth is simple: spend less than you earn, and invest the difference wisely.
The only question that remains is whether or not a person will do what is necessary. Will they demand financial freedom for themselves?
The only thing that stands between someone and wealth is the will to act.