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Digest: What Is The Single Most Effective Piece Of Financial Advice You’ve Ever Received?

February 11, 2018

Henry Wang

Henry Wang Answered on Quora:

“1. Buy assets, not liabilities.

“a. Buy things that make money for you: stocks, real estate. Do not buy things that do not make money: clothing, fancy cars, etc.

“2. Do not buy assets you do not understand.

“a. If you're a bad financial instrument, you're going to have a bad financial instrument.

“3. Make more money, not save more money.

“a. No one increases their net worth by saving. They increase by making more money.

“4. People who look rich are poor. People who look poor are rich.

“a. People who drive fancy cars and flaunt their wealth are probably not that wealthy.

"I never invest in anything that I do not understand" - Warren Buffett”