One of Buffett’s most famous sayings of wisdom is “If salary is your only source of income, you’re one step closer to poverty.”

One of Buffett’s most famous sayings of wisdom is “If salary is your only source of income, you’re one step closer to poverty.”Warren Buffett is an investor, entrepreneur, and philanthropist from the United States. He is one of the richest people in the world, with a net worth of 118.6 billion US dollars (2023).

One of Buffett’s most famous sayings of wisdom is “If salary is your only source of income, you’re one step closer to poverty.”

Starting from the author scrolling social media, the author accidentally saw Warren Buffet’s words of wisdom on the author’s social media and immediately came to the writer’s heart. The writer said to himself, “Why is it so related? “
So the author feels that this wise word is very important and relevant to the current state of the global economy. Then the question is, why are Warren Buffett’s words of wisdom important and relevant? Buffett is known as one of the most successful investors in the world. He has invested in various companies, including Coca-Cola, American Express, and Berkshire Hathaway. Buffett is also known as a wise and inspirational figure.

These words of wisdom of Buffett are important because they remind us of the importance of having more than one source of income. This is important to reduce our risk of becoming poor.

There are several reasons why Buffett argues that a salary that is the only source of income can bring us one step closer to poverty.

First, salaries can disappear at any time. We can lose our jobs due to various factors, such as layoffs, employee reductions, or bankrupt companies. This can happen due to various factors, such as economic recession, technological changes, or increasingly fierce competition.

Second, the salary may not be enough to meet the necessities of life. This can happen because of high inflation or because we have a lot of dependents. Inflation can cause the price of basic necessities to increase, so we need to increase our income to meet the needs of life. Many dependents, such as children or sick parents, can also cause us to need a higher income.

Third, salaries can be unstable. This can happen because we work as freelancers or because we work in a volatile field. Freelancers have no job security, so they can lose their jobs at any time. Volatile sectors, such as the manufacturing industry, can also experience a decline in demand, which can cause workers to lose their jobs.

Therefore, it is important for us to have more than one source of income. That way, we will have an income reserve if one of our sources of income is missing or insufficient. We can start by looking for a side job or by investing.
The quote “If salary is your only source of income, you’re one step closer to poverty” means that if we rely on the salary of only one job, we will be more at risk of becoming poor. This is because there are several factors that can cause us to lose our jobs or experience a decrease in income, such as layoffs, employee reductions, inflation, or industry changes.

There are many real-life examples that support this quote. For example, during the COVID-19 pandemic, many people lost their jobs because their companies went bankrupt or reduced employees. This causes them to experience economic difficulties and even fall into poverty.

Another example is during an economic recession. During a recession, many companies experienced a decline in revenue, so they had to reduce their employees. This causes many people to lose their jobs and experience economic hardship.

Warren Buffett’s wise words “If salary is your only source of income, you are already one step closer to poverty” is an important warning for all of us. These words remind us of the importance of having more than one source of income to reduce our risk of becoming poor.

There are three reasons why a salary as the only source of income can bring us one step closer to poverty:

Salary can disappear at any time. The salary may not be enough to meet the necessities of life. Salaries can be unstable.
To reduce our risk of becoming poor, it is important that we have more than one source of income. We can start by looking for a side job or by investing.

This Warren Buffett quote is an important reminder that we must have a strong financial plan in place to protect ourselves from risk. By having more than one source of income, we will have a reserve of income in case one of our sources of income is missing or insufficient.

Below are three tips for starting to have more than one source of income:

1. Start by thinking about what you like and what you’re good at. Look for opportunities to make money from your hobbies or interests. 

2. Join a community or group that can help you develop your skills and network.  You can join the wealth program of Winners Skill International www.winnersskill.com

3. With planning and hard work, we can reduce our risk of becoming poor and improve our financial security.