Become pennywise with these smart finance tips

Warren Edward Buffett is an American business magnate, investor, and philanthropist. He is considered by some to be one of the most successful investors in the world.

Here are 10 of his tips on finance management:

1. On earning: Never depend on a single income. Make investments to create a second source.

2. On spending: If you buy things that you don’t need, soon you’ll have to sell things that you need.

3. On saving: You don’t save what you have left after spending, but rather spend what you have left after saving.

4. On taking risks: Never test the depth of the water with both feet.

5. On investment: Do not put all your eggs in one basket.

6. On expectations: Honesty is a very expensive gift, do not expect it from cheap people.

7. On past, present and future: Past is wastepaper, present is newspaper and the future is a question paper. Come out of your past, control your present and secure your future.

8. On reacting to situations: When something bad happens, you have three choices. You can let it define you. You can let it destroy you. Or you can let it strengthen you.

9. On the past: Our eyes are placed in the front of our head because it is more important to look ahead than to look back.

10. On mistakes: We use pencils when we were young but now use pens. Do you know why? Because mistakes in childhood can be easily erased, not so much now.