"Many people 'love spending beyond their income' by racking up credit-card debt, but that's a path to ruin, Buffett said. 'The rest of your life, you're underwater, and why in the hell do you want to be underwater?' The self-made billionaire said that people who aren't worried about money tend to be 'quite a bit happier' than those who are. There's 'nothing magic' about managing your finances, he added. 'You just have to think a little and use a little discipline.'"
"Buffett acknowledged that teenagers and college students aren't 'inclined to use a lot of discipline,' but he still gives them the same advice: 'Don't get in debt.' 'And beyond a certain point, if you get in a hole or anything, it is difficult to dig out, isn't it?' he said. 'It's impossible, and I give credit to people who do it. But do it the easy way.'"
Personal debt, especially credit-card debt, leads to long-term financial hardship and undermines happiness. Spending beyond income often leaves people perpetually underwater; avoiding debt improves wellbeing. Managing finances requires basic thought and discipline rather than any special trick. Teenagers and college students should avoid accumulating debt, while mortgages may be acceptable if handled cautiously. Parents should combine forgiveness with clear expectations to encourage better behavior. Recovering from mistakes, choosing work that fits one’s interests, and committing to lifelong learning contribute to a full life and sustained personal and financial wellbeing.
Read at Business Insider
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