On Earning:”Never depend on single income.Make investment to create a second source.”
The above lines mean to say that a person should not always depend on a single source of income. Whatever he is doing whether a job or business or anything else.He/She should always create the second source.Always invest some proportion of income or salary.It is better to be early than too late.
On Spending:”If you buy things that you do not need,soon you will have to sell things you need.”
This means that if you buy the unusual things that you don’t need it,sooner or later you will have to sell the things you need.That’s why always chose wisely.One good decision can make your life better.Here I remember one very good incident.One day a boy asked his father to buy him an apple iPhone.His father explained to him instead buying an iPhone I will buy you a Samsung phone and with that I will also buy you apple stock(share).Here his father makes a very good decision for his son.
On Savings:”Do not save what is left after spending, but spend what is left after savings.”
The mistake that most of common man do is that they spend first and then invest what is leftover. One should always create financial plan. We must understand from the above quote is that we should prevent overspending. Therefore we should invest first and plan our expenses. From now whenever you got your salary, keep some amount for investment and then spend what is leftover. You can also start SIP in mutual funds.
On Taking Risk:”Never test the depth of the river with both your feet.”
If you are investing for the first time or newer to the stock market then don’t ever directly enter into direct investing.Always start through passive investing like mutual funds or SIP.Beware of fake stock tips.
On Investing:”Do not put all eggs in one basket.”
Do not invest all the money in one asset class.You should diversify your portfolio.It generally reduce the risk.Invest some portion of the amount in stock, some in mutual funds, some in bonds and some in gold ETFs.
Bold sentence are Warren Buffet Quotes,others is mine understanding/interpretation.
Investors Mindset 