Most people make money, not wealth. They trade their time to produce wealth for others in exchange for cash. Or, they take money for something that cannot scale or sell indefinitely.
It’s a fair deal either way, you’re (usually) not a victim in these exchanges, but if you’re looking for financial freedom, you’re going to need to invest some of your money in things that make more of it without you.
Investing can be off-putting to some—isn’t that what they do on Wall Street, and don’t they take advantage of people? No way, I don’t want any of that.
You’re probably already investing. What about your 401(k) or that IRA your tax preparer recommended? Retirement accounts are great, but they’re the tip of the iceberg and usually not sufficient on their own. Plus, you want to increase the chances of freedom now, not when you’re retired.
There are two basic strategies for investing in the stock market, and with the proliferation of online brokers with low to no fees, it’s easier than ever.
Buy low, sell high — for the more efficient and analytical, research the company or asset you’re interested in and buy when things look like they’re dropping and sell when they’re picking up. Rinse, repeat.
Dollar-cost averaging — if you want to avoid anxiety around risk and believe in the company or asset, invest a set amount of money every week no matter what the market is doing. Set it and forget it.