5 life tips from Warren Buffet, will help you in your daily life and business.

1. Reinvest

Reinvest your earnings. Don’t waste money. Your earnings may tempt you to spend the money you earn right away. Don’t. If you want to keep making money, you should reinvest your profit. Even small investment capital can turn into large wealth.

This advice is echoed by many other investors and financial advisers. It’s usually about 10%. For each gain, set aside (reinvest) at least 10% until you can start meeting your needs.

2. Mind the petty cost

Keep an eye on the small costs, as they say: even a small hole can sink a large ship. A prudent cost-setting process can have its profits and thus increase your earnings.

3. Think differently, make a difference

Think differently, differentiate. Don’t base your decision on what everyone talks about or does. For Warren, average is what everyone else does. To be above average, you need to measure yourself by what Warren calls the Inner Scorecard, to judge yourself by your own standards, not by the world’s.

4. Limit loans

A life of credit cards and loans will never make you rich. Don’t borrow money for something that won’t make you any more money. Warren’s recommendation is:

“Deal with the creditors and pay back what you can. Then, when your debts are paid, work to save some money that you can use to invest.”

5. Remember when to quit

Once, when Warren Buffett was little, he went to the races. He bet on the winner of the race then and lost. He wanted to get his money back as quickly as possible, so he bet on the next race and lost again, more this time, leaving the races empty-pocketed. He was unhappy because he had lost a week’s earnings. Warren never made the same mistake again. He knew when to walk away at a loss and resist the temptation to bet again and get the money back.