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Habits of Millionaires: Warren Buffet’s 10 Rules Posted at Jimmy John’s part 1

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While having lunch at Jimmy John’s , Warren Buffet’s 10 Rules of Building Wealth posted on the wall made this even more of a favorite spot to eat.  I can’t help but stay motivated and fired up while I eat there!  Not only do I always receive a friendly greeting from the cashier and getting my #12 turkey w/guacamole ready for me to devour in less than 2 minutes…but I get to read the inspiring writing on the walls.

I wonder how many of us have been to a Jimmy John’s and noticed this powerful poster located on all the Jimmy John’s I have been to.  There are plenty meaningful posters all over the place so check them out the next time you go there.

I know, I should have titled this, “Habits of Billionaires” not “Habits of Millionaires”. But I don’t think Warren Buffet got to be a billionaire without first knowing how to be a millionaire first.  With the word “trillion” being tossed around so frequently everywhere you read associated with the American bailout, Obama health care and stimulus packages, many of us are becoming desensitized to how actually large a trillion, really is.  But that’s for another time.

Along one of these wall posters, laminated for durability, is Warren Buffett’s 10 Rules for Getting Rich.  Instead of just simply reposting what these rules are, I will share my own personal financial stories of how I recognized my money mistakes according to his rules and have begun to apply these habits of millionaires and billionaires to my life.  Why don’t you join along with me and share your own stories and money “AHA” moments in the comments section below.  Share your pain along with me!

Inspired during lunch @ Jimmy John's, Warren Buffet's 10 Rules

Let’s start with these three habits of millionaires, suggested by Warren “The Oracle of Omaha” Buffet:

1) Reinvest Your Profits – Warren Buffet states that it is tempting to spend your profits.  In other words, if you find yourself with a little more money at the end of the month, end up with extra cash remaining after each paycheck or find higher than expected earnings from your business…reinvest it towards the source that created extra cash, or profits, to begin with.  Problem is, Americans have no shortage of things to buy and items to purchase, making it fairly easy to “upgrade”, with everything we own. I realized my problem with this when I was 21 years old as a young United States Marine.

I just got back to the United States after serving a 12 month active duty overseas tour on Okinawa, Japan.  Within the next 12 months in southern California where I returned with a pocket full of cash, I had bought three brand new Jeep Cherokees on credit along with a 1975 Buick Le Sabre convertible, just for show.  Every time I traded in one vehicle for another, I didn’t realize that the dealer had rolled in my car loan into the purchase price for the other.  All I cared about was, “Can I afford the monthly payment”?  I would be years ahead of myself now had I taken the same $25k and reinvested it into a simple mutual fund or a piece of real estate.  But no one showed me these rules…nor was I looking for them.

2) Be Willing to Be Different – Don’t have your decisions based on what everyone is saying or doing.  Warren Buffet starting his investing career after soliciting $100,000 from different investors back in the 1950s.  He wasn’t a Wall Street tycoon, but ran his business in the heartland of America.  He later sold this partnership for $100 million 14 years later.  It reminds me of a time when I had a tough decision to make to not re-enlist in the Marine Corps after serving eight-glorified-life-changing-years.  I was going through a divorce and did not want my “active-duty-can-deploy-to-anywhere-in-the-world” status to come up negatively in family court.  Fellow Marines looked down upon me and said, “All you know how to be is a Marine,  Sapaula!  Suck it up and just re-enlist!”  They were right.  All I did know how to be was a Marine.

Yet, the thought of me being away from my son’s first steps, first birthday, first day of school, first martial arts class…was nothing I wanted to experience without me being by his side.  I chose to return a call from a financial planning recruiter who later hired me to intern at a major brokerage firm in southern California.  Once fellow Marines heard I was moving towards a civilian career they would say, “Sapaula…you’re broke!  You’re the LAST person anyone would trust with money! What do you know about investing?”  My initial reaction was to CHOKE THEM. LOL! These words were coming from guys I trusted, bled with and fought out of tough situations with…and this is how they talked to me?  No respect?  But my dreams and personal circumstances were bigger than that.  Obviously, someone thought enough of me off the military base that they actually gave me an opportunity to get my foot in the door within the financial planning industry.

After eight years, I rose to the become the #1 financial professional out of 25,000 colleagues.  I was recognized at national training conferences, requested to train and speak  to other financial and insurance industry professionals internationally about my process.  It was quite a journey from bankrupt Marine Corps Sergeant to an Advisor Today Magazine’s nominated Top 40 under 40-year-old financial professional.

3) Never Suck Your Thumb – Gather the necessary information you need to make a decision, then ask a friend, relative or coach to help you stick to a deadline.  Buffet prides himself on swiftly making up his mind.  Any unnecessary sitting and thinking is called “thumb-sucking”.  Another way to say this is procrastinating, or “paralysis by analysis”.  Either you quickly say, “I need to pass on this” with no regret, or “Let’s DO THIS”!  But sitting stagnant in the middle of indecision and later regretting it costs you more money, time and learning experiences to make better decisions down the road.

In my personal financial and wealth-building coaching practice, I have met with many clients and students who get the proper education, data and information they need about an investment opportunity.  They find that it aligns with their goals, values and personal financial circumstances…but then hesitate moving forward with a decision.  In the meantime, they not only lose money-making opportunities, lose passive or portfolio income but, they deal with the regret of not moving forward.  They know in their heart that they should have made a decision, it was the correct decision to begin with.  Sadly, they also lose confidence and belief in themselves when no results occur from their wealth-building endeavors.  As the saying goes, “You can make money, or you can make excuses…but you can’t do both”!

More of Warren Buffet’s 10 Rules from Jimmy John’s

Did you like these first three rules?  Please share how these rules may have applied to your life…and what you have learned from them!  I’m just may add your story in my next post so we can all learn from one another!!  Stay tuned for part two and three!!

Money Smart Coaching: Do you have a system for helping you make financial decisions?  Currently, how have you been making these important choices as it pertains to your mortgage, real estate investment opportunities, planning for your kid’s college education or your own financial freedom and retirement plan?  Have you found yourself emotional and defending your decisions, even though you know in your heart, that you were wrong?  We’d like to help you get moving along and be that sounding board or that coach you need to help make better decisions.  Call us at 708.686.2000 x1 or email us: [email protected] for a FREE 30-minute financial review and coaching session.

Currently there are "2 comments" on this Article:

  1. […] at Money Smart Radio – “Habits of Millionaires: Warren Buffet’s 10 Rules Posted at Jimmy John’s part 1″ I really could have put this one in either the manage or the increase category.  Manage because […]

  2. Robert Fisher says:

    Where can I purchase one of these signs.

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