Friday, March 19, 2021 / by Mario Daniel Sconza
1. Appearances can be deceiving.
If you don't live within your means, you will always struggle financially. No matter how much you earn. Focus on actual wealth accumulation instead of chasing the image of looking wealthy.
2. Index funds are vital to building wealth.
Index funds or ETF's provide investors with broad exposure to an entire market instead of owning individual stocks. Andrew advises against mutual funds, which are expensive to own and rarely outperform the market.
3. Stay in the market.
When markets are underperforming, like in the 2020 pandemic, the majority of people sell their investments. It's natural to get nervous. However, to achieve success as an investor, avoid selling your investments during market declines. Think of market dips as "sales."
4. Your greatest ally is time and compound interest.
Achieving financial peace and freedom from one big trade is a shot in the dark. Trying to hit a home run is a foolish investment strategy. Long-term investing with average returns is how 99% of people achieve financial peace and freedom.
5. If it sounds too good to be true, it probably is.
"At some point in your life, someone is going to make you a lucrative promise. Give it a miss. In all likelihood, it is going to be nothing but headaches." The author also shares several studies highlighting the ineffectiveness of investment newsletters.