$20.5m follower assets
Don't Overcomplicate The Basics
5 Easy Ways To Build Wealth:
- Spend less than you make
- Invest in low cost index funds consistently
- Don’t focus on the week by week returns (Block out short term noise)
- Limit debt and focus on value added debt
- Be patient
I couldn't agree more with this post. They are simple steps to understand but difficult for many people to put into practice. Especially the patience part.
@coates23 The moment I allowed myself to hold positions for months is the moment I saw my returns skyrocket. Hard lesson to learn but very valuable!
"Invest in low cost index funds consistently" <-- This one won't work as well as active investing in the next decade should the FED do the right thing and keep increasing rates IMO
@goldenlacllc I do not disagree, but for most, active investing is an underperforming strategy if one does not know technical analysis as this is focused on building wealth for all
Preston did say "easy ways" to build wealth :) People who DCA into index funds over long periods (several decades) do really well, but at the end of the day—to your point, @goldenlacllc—it's (only) the market average.
Couldn't agree more! I think in a volatile time the fundamentals and basics are the best way to go
I would modify number 1: "Spend less than you make and search for ways to make more, not to spend less."
Being patient is a tough one for sure. $QQQ is still up almost 100% for the last 5 years!
Not bad doubling your money every 5 years if those type of returns continue.
@moneyshark Absolutely! Compounding is the 8th wonder of the world. You can even expedite this with some active investing to capture key runs and buy major dips.
What?! Nothing about passive streams of income? ;) Anyway excellent list, @investorinsight. #5 is my favorite. It's my superpower.