When it comes to matters involving finance, investments, and giving back, no one does it better than Warren Buffett. At one point, Buffett was the wealthiest person on planet earth, but now he has fallen in the rankings, but is still #3 in the world, according to Forbes. His current net worth exceeds $90 billion. It is easy to become critical of a person with so much capital when other individuals in the same country struggle to make ends meet. However, Buffett could easily still be ranked #1 in the world as the richest person, if he had not chosen to donate literally billions of dollars to charity. Buffett is a prime example of how to live frugally, how to build wealth over time, and how to budget finances to still be able to give to charity.
The stock market is the first place that must be talked about. There are many false ideas surrounding the stock market and how to make money in it. Buffett has made a considerable amount of his money by investing into companies and buying shares of stock in those companies. Believe it or not, most, if not all, of the companies Buffett invests in are very large, relatively safe investments. These stocks are only relatively safe because the stock market always has considerable risk and volatility involved in it. But in Warren Buffett’s portfolio, he invests only in companies that are very large, reputable organizations. It would take massive movements in the economy to drastically shift most of these companies upward or downward. If you take a look at Buffett’s holdings, you will be truly amazed at the amount of money this man has.
Currency and cryptocurrency trading are two other forms of trading. Currency trading can involve trading FOREX, which is foreign exchange. FOREX is essentially managing currency exchange rates and watching how one currency converts into another. FOREX is a harder concept to grasp but is a much larger market than the stock market. Cryptocurrency has swept the world by storm in the last year or two. Bitcoin is the most popular digital currency at the moment, but there are many other cryptocurrencies. FOREX trading and cryptocurrency trading are not for the faint of heart. Do your due diligence to study these markets and research currency trading for at least several months before venturing into these markets.
There is a much to be said about Warren Buffett and his methods with money. Books have been written specifically to talk about his life and his financial management. But let’s look closer at his philanthropy. Buffett has given away a considerable amount of his wealth. We’re talking billions of dollars. Buffett, of course, is the chairman and CEO of Berkshire Hathaway and in June of 2006, Buffett pledged to give over $30 billion worth of shares of his company to the Bill & Melinda Gates Foundation. If that alone does not impress you, then take some time to read about the Giving Pledge. This pledge was originally signed and founded in 2010 by none other than Warren Buffett and Bill Gates. Fast forward to 2018, and there are 184 signatories from around the world, most being billionaires. The Giving Pledge inspires wealthy people to donate half of their wealth to charity either while they are living or after their death.
Buffett has profited off of time and it would be wise to do the same. Here are some Investment Strategies that will help you build wealth over time. None of these are get-rich-quick schemes. They are simple ideas and strategies to learn to control your finances and build towards the future. The average person, of course, does not have the ability to donate billions, even millions, probably not even thousands of dollars to charity. But if you simply budget monthly, quarterly, or even yearly to give back a little to charity, you will be surprised with how a few dollars can help others while also showing you how to better manage finances.