Friday, September 08, 2017
The "Warren Buffett Of Sweden" Shares 5 Pieces Of Saving Advice That Will Help Anyone Become A Millionaire
Via Business Insider: Roughly one in ten Swedes are millionaires today (in the local currency). Per H. Börjesson, the founder and CEO of investment company Spiltan, thinks there could, and should, be many more. Börjesson's bestselling book "Here's how all Swedes can become millionaires" has a simple message: The key to becoming financially independent is to follow a number of simple savings advice, and stick with them through thick and thin. The book had a big impact in Sweden, especially as it came out in the depths of the financial crisis. Börjesson is an avid disciple of investor legend Warren Buffett, and often quotes his advice: "Everybody can become rich on stocks, but you need to be ready to commit for at least a decade". Börjesson's track record with Spiltan, one of Sweden's foremost investment companies, has earned him (along with a handful of other Swedish financiers) the informal nickname "Warren Buffet of Sweden". Here are Börjesson's 5 key pieces of advice to young people starting out today (and to anyone else for that matter), according to Veckans Affärer (VA). 1. Start each month by saving 10 percent of your income When some of his readers question the feasibility of this advice, he reponds: "I notice all the time how people spend money on things that are not necessary, such as eating lunch in a restaurant instead of preparing your own, buying coffee on your way to work, lottery tickets and cigarettes etc". ”Absorb the oldest and best investment advice there is: save 10 percent of your salary each month, before you do anything else. Don't wait", Börjesson told Dagens Industri. 2. Live within your means, i.e. don't let your costs surpass incomes 3. Buy shares or equity funds "If you buy shares in a company, then investment companies are a good alternative. When it comes to funds, choose index funds with low fees, or active funds. You can also buy individual quality stocks". 4. Hold on to your assets "The best thing is to never sell all of your shares. But you can use some of your assets for an apartment or for that dream holiday". 5. Be very careful when listening to investment advisors Börjesson says that you shouldn't rely too much on "experts", but instead make independet decisions when it comes to your money. When buying your index funds, make sure that the fees are low. That way, you will be able to keep most of the returns. "The most tragic thing is that even the people who do a good job saving each month, cannot become millionaires if they accept bad advice from advisors who are really just salesmen", Börjesson says.