Numerous entrepreneurs base their ultimate “win” too much on a corporate exit. Instead, do this.
How many business owners still have the same level of confidence they did before the COVID-19 outbreak started? Yes, we are aware that the bulk of the S&P 500 firms were founded in down markets. And it’s true that the best entrepreneurs instinctively utilize difficult times to focus on and pay closer attention to their market and consumers, innovating where necessary, and building businesses that are more robust than ever.
But the current market environment feels different to many of us. Many, if not most, of the exits that they were aiming for have changed or been delayed. We couldn’t have predicted how different consumers are from one another. Even the most basic types of employment have changed, and employees today are different.
You should “pay yourself first” by putting some of your money aside first, as Buffett has noted and demonstrated on several occasions.
According to statistics, the most financially secure individuals are those you least expect. They are regular people who have developed good financial habits. They didn’t postpone saving and investing till “we can afford it” (which would never happen) or “when we exit our company.”
Consider purchasing your vehicles (luxury or not) gently used, following Buffett’s lead.
If you buy a luxury home, choose a residence and location that will make it easy to resell or use as a full- or part-time rental for additional income and tax advantages. Alternately, think about purchasing and residing in a modest property but periodically renting a luxurious home for a trip with your family or friends.
Buffett has frequently remarked, “If you buy things you don’t need, you will soon sell things you do need.” The greatest potential waste of money and savings is using credit cards. If you run like Warren Buffett, you almost exclusively use cash. Learn how to utilize cards efficiently if you do so in order to maintain a good credit score, be eligible for the maximum credit possible when required, and pay the least amount of interest—or none at all—while doing so.
For the record, Buffett has frequently advised against using borrowed money to invest in securities.