Tom Turula, Business Insider
Roughly one in ten Swedes are millionaires in Swedish crowns, according to data from SBAB, a Swedish bank. (A million Swedish crowns, when converted to US dollars, is worth about $125,000.)
Per H. Börjesson, the founder and CEO of Swedish investment company Spiltan, thinks there could, and should, be many more.
Börjesson's bestselling book "Here's how all Swedes can become millionaires" draws from his experience running his company, an investment firm with $3.4 billion (27 billion Swedish crowns) under management.
The book has a simple message: The key to becoming financially independent is to follow a number of simple savings advice, and stick with them through thick and thin.
Börjesson is a big fan of investor legend Warren Buffett. His strong track record with Spiltan, one of Sweden's foremost investment companies, combined with his affinity for the Sage of Omaha has earned Börjesson the informal nickname "Warren Buffet of Sweden."
He has even made Spiltan's annual shareholder meetings into spectacles modeled on Berkshire Hathway's.
Moreover, Börjesson is often seen quoting Buffett's advice in the media, such as: “If you aren’t willing to own a stock for ten years, don’t even think about owning it for ten minutes."
Here are Per H. Börjesson's 5 key pieces of advice to young people starting out today, and to anyone else for that matter, according to Veckans Affärer (VA).
1. Start each month by saving 10 percent of your income.
"Absorb the oldest and best investment advice there is: save 10 percent of your salary each month, before you do anything else. Don't wait," Börjesson told Dagens Industri.
2. Live within your means, i.e. don't let your costs surpass incomes.
Börjesson said: "I notice all the time how people spend money on things that are not necessary, such as eating lunch in a restaurant instead of preparing your own, buying coffee on your way to work, or lottery tickets, cigarettes, etc."
3. Buy shares or equity funds.
"If you buy equities, then investment companies are a good alternative. When it comes to funds, choose index funds with low fees, or active funds. You can also buy individual quality stocks."
4. Hold on to your assets.
"The best thing is to never sell all of your shares. But you can use some of your assets for an apartment or for that dream holiday."
5. Be very careful when listening to investment advisors.
Börjesson said that you shouldn't rely too much on "experts", but instead make independent decisions when it comes to your money. When buying your index funds, make sure that fees are low. That way, you will be able to keep most of the fund's returns.
"The most tragic thing is that even people who do a good job of saving each month, cannot possibly become millionaires if they accept bad advice from advisors who are really just salesmen," Börjesson said.