There is so much competing for our attention in the world of money. Million dollar morning routine! MLM schemes! Day trading tips! Billionaire home tour! Meme stocks! Mega millions lotto! Meme coins! Insurance scam!
But while all of that is filling up our feeds and heads, it won’t fill up your wallet. It’s all sensational speculative nonsense.
Meanwhile, on most brokerage websites there’s an unassuming little button that says something like “Set up automatic investments”. Clicking that button, contributing a good chunk of money each month into an index fund, then doing NOTHING for for a few decades will make you rich.
It’s important to understand what investing really is. Investing is buying things that have these two characteristics:
1. Likely to go up in value
2. Generates income while you own it
The combination of those two things creates the magic of compound growth over time. The thing goes up in value, it pays you money which is used to by more of the thing, repeat. Overtime it creates a snowball effect of out of control growth of value!
My favorite thing to invest in is index funds! They are cheap, simple, not speculative, efficient, easy to access, require minimal time to buy or maintain, and provide optimal investment growth!
As always, reminding you to build wealth by following the two PFC rules: 1.) Live below your means and 2.) Invest early and often.