2. Reinvest Your Profits

If you make money off an investment, don’t take your money and run — follow Warren Buffett’s investment strategy and reinvest your profits.

As a teenager, Buffett partnered with a friend and began a pinball machine business. They started with one machine and a $25 investment. Instead of spending all their profits on teenage stuff, they used the money to purchase additional machines until they had eight machines in multiple locations.

Once the business partners went their separate ways and sold the pinball machine business, Buffett used some of his proceeds to start another business.

It’s great to be optimistic about businesses, but they don’t always succeed, said Neil Napier, CEO and founder of KV Social, a company that offers social media marketing solutions.

“Every month, set aside between 10 to 25 percent of your profits, and reinvest those into different businesses,” he said. That way, even if an industry collapses, “you have some assets secured elsewhere.”