| Knowing how to invest money is not something you | | | | Warren Buffett, often acclaimed as the world's |
| just automatically know how to do. It usually comes | | | | greatest investor, lives by the notion that investing is |
| with practice, a lot of research, and probably a | | | | not about how much money you can make, but how |
| significant amount of loses along the way. That's | | | | much you can avoid to lose. When you realize that |
| unfortunate because being a long term investor is | | | | 10% annual returns, about what the stock market |
| really the best way to become wealthy, and often | | | | averages over the long run, allows you to double |
| new investors quickly get discouraged by not being | | | | your investment every 7 years, it becomes a much |
| able to turn a quick profit. | | | | easier process. |
| New investors tend to go through the same routine. | | | | Wealth investors make their millions not by chasing |
| They get a bit overwhelmed by the number of | | | | hot stocks or the next big bubble, but by being |
| investing products, options and methods, and then | | | | average. By doing this you effectively keep your risk |
| they search and search for the best way to make | | | | low and your profits high. As a result, you take |
| the most profits. They might spend a few nights | | | | advantage of compound interest, the formula that |
| tossing and turning as they think about how much | | | | Albert Einstein regarded as "one of the greatest |
| money they can possibly make and potentially quit | | | | wonders of the world." |
| their job. After several attempts to make money | | | | It's really easy to be average too and will save you a |
| and losing, they get discouraged and never invest | | | | lot of time and restless nights. By simply investing in |
| again. | | | | an index fund that tracks the S&P 500, you do |
| Smart investors, however, realize that building wealth | | | | not need to know anything about investing, you do |
| takes time, patience and discipline. Probably from their | | | | not need to analyze company stocks and quarterly |
| own experience they learn that trying to "beat the | | | | reports, and you do not need to worry about |
| Street" is much more difficult than it seems, and | | | | whether or not you are going to make money. By |
| reside to being comfortable with average returns. But | | | | simply investing in index funds on a regular basis, |
| it is these average returns that turn small time | | | | history proves that there is no easier, guaranteed |
| investors into millionaires. | | | | way to become a millionaire with such minimal effort. |