Some of us may associate savvy investors with people huddled around a computer screen perpetually staring at a multitude of charts, handling sizeable sums of money and trading non-stop like a teenager who just discovered Diablo for the first time. The term you may be searching for may actually be “crazy”, and our columnist Lionel Yeo explains that the simplest way to be a great investor is not about selling your soul to the stock market.
The Most Valuable Currency Of All
Today, I want to talk about a pretty unique reason of why I chose index investing over the other sexier tactics out there.
It’s because index investing gives me the most valuable currency of all: ENERGY.
You see, I’ve realized that while investing is important, most of us don’t want it to take over our entire lives. We’ve got better ways to spend our energy.
As young people, we want to focus on excelling in our careers, having fun with our friends, and spending time with our families. We have big ambitions. We might be thinking about launching our own businesses, writing a novel, starting a charity, working on your art, or becoming a K-Pop star (but maybe not like this).
We can’t do those things if investing takes up all our energy. Research shows that energy is a finiteresource. Anyone who’s worked for a long day at the office will know exactly what I mean.
If your mental capacity is taken up by things like watching the market, researching annual reports and calculating P/E ratios, how will you have enough energy left over for the rest of your life?
Yes, investing is important – It’s hard to get rich if you don’t start investing from a young age. But it shouldn’t take over your entire life.
There are better ways to spend your time than staring at some squiggly stock chart.
Building Investing Around Our Lives
I’ve spent years researching and testing dozens of investing strategies out there. And you know what I found?
That index investing is only one that can be built AROUND your life, while giving you the best possible chance of success.
Yes, you will have to spend a couple of weeks upfront to learn the principles, set up your portfolio, and establish your systems. But once you’re done with that, you can simply let it run – like a well-oiled machine.
I love it, because it’s entirely scalable. It takes me the same effort to invest $3,000 a month as it does for me to invest $300 a month.
And guess how long I take to invest every month?
The answer: 20 minutes.
20 minutes a month to monitor my portfolio, calculate my figures, log on, and make my investments. I don’t even have to think during the entire process because everything is laid out for me in a nice, beautiful spreadsheet. All I have to do is punch in the numbers, and I’m done. Easy-peasy.
And yet, over the long-run, I know that index investing will give me better results than the majority of professionals out there. This happens entirely in the background – a truly passive investment.
So imagine if you had an effective investing strategy in your pocket that requires minimal time and energy on your part. What possibilities would open up for you?
- Could you focus on excelling in your career, knowing that your portfolio is growing your wealth on the side?
- Could you take on new and exciting projects, knowing that as long as you continue investing, your retirement will be taken care of?
- Could you spend 20 minutes a month for your investments, and then move on to the things that you really want to do?
The Thing That I Really Want To Do
Personally, what I really want is to create something that will truly help other people, and then share it with the world.
I finally got to do it after six months of hard work.
It’s been a big project for me. I’ve spent my nights, weekends and even my annual leave researching, writing, and crafting this product. I’ve invested a lot in the production and I’ve poured my heart and soul into something that will serve a lot of people for a very long time.
Lionel’s e-book, Automatic investing, is now available here, and includes everything you need to get started. Together with simple and easy to digest content, he has also provided tools for every beginner to start their exciting journey of investing.
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