1. Create a system
When you build a system by automating your personal finances, it means you’re not wasting your time and energy moving money around and making decisions because all the decisions have already been made for you. And part of this system is automating your investments. If we assume an annual market return of 7%, a 25-year-old who automatically sends $10 a day to their investment account can have $270,000 by age 50.
2. Ignore market predictions:
With investing there’s a lot of people making forecasts and predictions. But here’s a simple way to convince yourself these people are guessing: Read last year’s predictions.
3. Really, do nothing:
For everything we do in life when we’re working really hard it eventually pay offs. This is why being successful at investing is so counterintuitive. Because when you’re working really hard at it by tinkering and tweaking and adjusting your investments what you’re really doing is destroying your future wealth. Why do investors do so poorly? Because they’re tinkering and tweaking and adjusting. So, if you want to be better than the average investor it means doing something that most people can’t do, and that means putting up with years and decades of doing absolutely nothing.
4. Outsmart markets:
Just by choosing investments with low fees you save $100,000 and when you’re saving $100,000 it means having $100,000 more for your future.
