Wealth building isn’t about luck, it’s about principle, habit, and strategy. For example, if you believe in the principle of saving and spending less than you bring in and put it into practice you’ll always have more than you need. That’s a principle that’s been put into action that’s become a habit. But that principle needs to be compounded with strategy.
That’s where investing comes in.
In the last 18 months, investing has come to the forefront of the American psyche and folks are finding out that it’s a solid way to gain and build wealth. No — it’s not an overnight pay day plan and it’s not a get-rich-quick-scheme. It is one of the natural principles and strategies that is the natural next step after saving.
I encourage everyone to invest in something, but there’s two things you need to know. First, be informed and have your financial literacy up to par. Far too many Americans are betting their life’s savings in investments without knowing what they’re doing. That’s why Operation HOPE and I created, proposed, and advocate for the Investors’ Bill of Rights, which Robinhood has recently signed on to as the first signatory. Second, I’m a firm believer in buying and holding and you should be, too. When you understand the principle of investing and look at things in the long-term with a long time horizon you’ll begin to see why this is the best strategy to employ alongside the general princple
There are three things that have never gone backwards in long-term value in the history of the American economy:
- Real estate values
- Stock market values
- Gross Domestic Product (GDP)
Understanding the trend and the long game of these assets is the key to success. You don’t just buy a property or a stock for the short-term. It’s a long-term investment strategy and you can’t allow the emotions or fear of momentary volatility scare you into selling when things look bad.
In short: buy and hold. That’s the name of the game. Buy and hold.
I talk about this more with a little more depth in my latest video. Check it out below and then visit OperationHOPE.org to sign up with a financial wellbeing coach to get started on your wealth building journey.
Love and light.