The American Education Institute

According to Mr. Warren Buffett, who is currently the richest man living on this earth, with assets exceeding $62 billiion, there are Ten (10) ways to get rich in the United States. They are as follows:

1.  REINVEST YOUR PROFITS- When you first learn to make money, do not spend it, but instead reinvest it in something that will produce more wealth and/or income.
2.  BE WILLING TO BE DIFFERENT- Do not make your financial decisions based on what other people are saying or doing.
3.  NEVER SUCK YOUR THUMB- Gather all of the information you need to make a decision and act on it based on a deadline and a definite price.
4.  SPELL OUT THE DEAL BEFORE YOU START- Bargaining leverage is always the greatest before you begin, since this is the point where you have something to offer that the other party wants.
5.  WATCH SMALL EXPENSES- Invest in businesses run by managers who are highly concerned with the smallest costs and/or expenses.
6.  LIMIT WHAT YOU BORROW- Living on credit cards and loans will not make you rich.
7.  BE PERSISTENT- You can be a success with tenacity and ingenuity.
8.  KNOW WHEN TO QUIT- Never repeat the same mistakes and know when to walk away from a loss or bad deal
9.  ASSESS THE RISKS- Asking yourself “and then what?” helps you see all of the possible cosequences when struggling to make a decision, which can guide you to the smartest choice.
10.KNOW WHAT SUCCESS REALLY MEANS- The ultimate test of a successful life is knowing how many people really love you.

Alice Schroeder has written a book about Warren Buffett entitled “The Snowball: Warren Buffett and the Business of Life”, which was published in 2008 by Bantam Books.

Isn’t it amazing that Mr. Warren Buffett took two cents and built it into a $62 billion fortune. Mr. Buffett had two factors that motivated him to seek riches. They were noted as follows:

1. He wanted to make alot of money – he learned the rule of 72 or the Rule of Compound Interest
2. He wanted to be independent – he did not want to work for anyone else but himself

In addition, Mr. Buffett was fortunate enough to read a book while visiting the local library entitled “One Thousand Ways to Make $1,000″. This book explained the miracle of compound interest or the Rule of 72 as it is sometimes referred to financial circles. If we would all learn the Rule of 72, we too would be rich or at least be a millionaire. For example, if at age 25 you had saved $2,000 for approximately six (6) years or to age 31 and never saved another dollar until your retirement at age 65, at a twelve (12%) percent annual return on your money, you would have over $1,000,000 in your retirement account. This is what we call “The Miracle of Compound Interest”. I wish that I had it all to do over again, don’t you?