FOX Business Network's Liz Claman will interview Berkshire Hathaway CEO Warren Buffett in an exclusive sit-down on Monday May 6th at 9:30 a.m. following the Berkshire Hathaway shareholder meeting. Claman has interviewed Buffett numerous times throughout her career, so below she shares some insight on what advice he might give to those making 50K per year.

1) No matter how small an amount you can allot, put a bit, every month, into the stock market, most likely through no-load (no fee) index funds. Buffett doesn't have a minute for investment advisors who charge you a fee to make dumb mistakes in the stock market. He is constantly making bets with people that a basic S&P index fund will eventually, over time, outperform the fancy, pricey brokers. If you don't have a lot of money to spare, it's the best idea out there.

2) Follow your passion. Do what you love and the money will come. He loves to say, "I tap dance to work." That's how much he loves his profession. And by the way, Buffett doesn't love money. He loves the process of *making* the money. He went directly into the profession for which he had an affinity. Whether it's comic book artist, newscaster or social work, if you head straight to where your desire lies, you'll be successful.

3) Invest in yourself. Back in the day when he wasn't making a lot of money, he spent more than $100 dollars on enrollment in the Dale Carnegie "How to Make Friends and Influence People" seminar. He was terribly shy and realized he'd never make it to the top no matter how talented he was in asset allocation if he couldn't communicate with people well. He loves to say that that course, along with the engagement ring he bought his wife, is the best investments he ever made.

4) No need to be cheap, but be frugal. Once I called Buffett on Valentine’s Day and guess what he was eating? A roast beef sandwich. He wasn’t having filet mignon. Certain situations and endeavors may call for splurging and being more carefree, but if the billionaires are saving money, maybe you should too.

5) Be disciplined. You probably know that Buffett bought Heinz recently. But did you know that Buffett has had his eye on it since the 1980s? It was only recently that it got to the price he wanted to pay for it. Buffett absolutely refuses to overpay for stocks. He reports his own earnings for Berkshire, going by book value (which considers assets and liabilities). He tends to assess a company’s value similarly and once he determines the price he’s willing to pay for it, he won’t budge an inch. Design a set of rules that work for you when it comes to budgeting and spending and adhere to them closely if you want to be successful.

Related Articles
  1. Insurance

    Warren Buffett's Bear Market Maneuvers

    This esteemed investor rarely changes his long-term investing strategy, no matter what the market does.
  2. Options & Futures

    Invest Like Buffett: Building A Baby Berkshire

    Get a piece of Warren Buffett's profit by using Form 13F to coattail his picks.
  3. Fundamental Analysis

    6 Rules From 6 Of The World's Top Investors

    These lessons from Icahn, Buffett, Slim and others will help you with your portfolio and trading style.
  4. Active Trading

    David Sokol: Buffett's Former Right-Hand Man

    Sokol contrasts sharply with Buffett's management style, but he can help Berkshire thrive once Buffett decides to move on.
  5. Professionals

    Warren Buffett's Frugal, So Why Aren't You?

    The Oracle of Omaha has a net worth in the billions, but his lifestyle is not as rich as you may think.
  6. Entrepreneurship

    The Greatest Investors

    Read about the achievements of those who have mastered the art of investing.
  7. Personal Finance

    How the Social Security Reboot May Affect You

    While there’s still potential for some “tweaking” around your Social Security retirement benefits, I’d like to share some insight on what we know now.
  8. Investing Basics

    Do You Need More Than One Financial Advisor?

    Using more than one financial advisor for money management has its pros and cons.
  9. Personal Finance

    How Tech Can Help with 3 Behavioral Finance Biases

    Even if you’re a finance or statistics expert, you’re not immune to common decision-making mistakes that can negatively impact your finances.
  10. Stock Analysis

    What Exactly Does Warren Buffett Own?

    Learn about large changes to Berkshire Hathaway's portfolio. See why Warren Buffett has invested in a commodity company even though he does not usually do so.
  1. Do financial advisors charge VATs?

    The Personal Finance Society (PFS) and with Her Majesty's Revenue and Customs (HMRC) have outlined when a value-added tax ... Read Full Answer >>
  2. Do Sallie Mae loans go directly to your school?

    Sallie Mae is the biggest provider of financial aid and student loans in the United States. The company operates as a private ... Read Full Answer >>
  3. What are working capital costs?

    Working capital costs (WCC) refer to the costs of maintaining daily operations at an organization. These costs take into ... Read Full Answer >>
  4. Do financial advisors get paid by mutual funds?

    Financial advisors are reimbursed by mutual funds in exchange for the investment and financial advice they provide. A financial ... Read Full Answer >>
  5. Do financial advisors prepare tax returns for clients?

    Financial advisors engage in a wide variety of financial areas, including tax return preparation and tax planning for their ... Read Full Answer >>
  6. Is a financial advisor required to have a degree?

    Financial advisors are not required to have university degrees. However, they are required to pass certain exams administered ... Read Full Answer >>

You May Also Like

Hot Definitions
  1. Barefoot Pilgrim

    A slang term for an unsophisticated investor who loses all of his or her wealth by trading equities in the stock market. ...
  2. Quick Ratio

    The quick ratio is an indicator of a company’s short-term liquidity. The quick ratio measures a company’s ability to meet ...
  3. Black Tuesday

    October 29, 1929, when the DJIA fell 12% - one of the largest one-day drops in stock market history. More than 16 million ...
  4. Black Monday

    October 19, 1987, when the Dow Jones Industrial Average (DJIA) lost almost 22% in a single day. That event marked the beginning ...
  5. Monetary Policy

    Monetary policy is the actions of a central bank, currency board or other regulatory committee that determine the size and ...
  6. Indemnity

    Indemnity is compensation for damages or loss. Indemnity in the legal sense may also refer to an exemption from liability ...
Trading Center