Don't Overcomplicate The Basics
5 Easy Ways To Build Wealth:

  1. Spend less than you make
  2. Invest in low cost index funds consistently
  3. Don’t focus on the week by week returns (Block out short term noise)
  4. Limit debt and focus on value added debt
  5. Be patient
Charles Oates Jr's avatar
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.
Preston | Investor Insight's avatar
@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!
Golden Lake Partners's avatar
"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
Preston | Investor Insight's avatar
@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
Joshua Simka's avatar
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.
Green Candle Investments's avatar
Couldn't agree more! I think in a volatile time the fundamentals and basics are the best way to go
Leandro's avatar
I would modify number 1: "Spend less than you make and search for ways to make more, not to spend less."
Cameron McFarlane's avatar
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.
Preston | Investor Insight's avatar
@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.
Joshua Simka's avatar
What?! Nothing about passive streams of income? ;) Anyway excellent list, @investorinsight. #5 is my favorite. It's my superpower.