Are you investing but not seeing the returns you expect? Maybe you were investing, lost some money and now don’t want to come back. Or maybe you just think the stock market is a scam and you avoid it altogether. Whatever category you fall into, I have some positive news for you. This post is all about helping you to succeed when investing. Even better, there is just one simple tip. Read on to learn all about it.
The One Tip For Successful Investing
So what is this one tip? Simply, to keep investing over time. That is it. If you can keep investing money into the stock market on a regular basis, you are going to end up with a nice chunk of wealth. Let’s take a look at why this is.
You Invest Regardless of The Market
It doesn’t matter if the market is up, down or sideways, you have to keep investing on a regular basis. When you do this, you sometimes buy high, sometimes you buy low and other times you simply buy in the middle.
This is key since no one can time the market over the long term. You might get lucky here or there, but over the long term, it is virtually impossible. So instead of waiting for the perfect time to buy, realize that the perfect time to buy is now.
You Invest More Money
When you invest some money, whether it be in the stock market or even a savings account, it grows thanks to compound interest. Compound interest allows your money to earn interest and then earn more interest on the money you initially invested plus the interest you have previously earned.
The great part about this is that every time your money compounds, it grows faster and faster. At first, you won’t notice this as much since the amounts will be relatively small. But in time, the amounts will grow larger and larger and you will see a lot of growing happening thanks to compound interest.
Time Is Your Best Friend
I touched on this point above, but will reiterate it. As your money grows, it gets larger and larger. This only happens with time. So the more time you have to invest and let your money grow, the larger the ending amount will be.
This takes us back to the first point about now being the perfect time to buy. The longer you wait to buy, the less time your money has to grow and compound upon itself.
What looks like a high in the market today is probably not going to be the high in 10 or 15 years. The market most likely will be even higher. So by waiting you are simply costing yourself money. Don’t make this mistake. Use time to your advantage.
As you can see, the key to being successful when investing is to keep investing over time. No matter what the market is doing, you need to keep putting more money away on a regular basis.
When you do this, you earn compound interest and take advantage of time. The more you keep investing, the more your money can grow and the more time you have, the more your money can grow. It’s a win-win scenario.