Why Investing Will Never Make You Rich.
People believe they are being financially responsible if they are investing money in mutual funds, index funds, ETFs, REITs. Power to them.
But when people believe they will become ‘RICH’ by investing, now becomes a problem.
If you invest $500 a month, every month, for 30 years regularly and let it compound, you’ll still only get $1.6 million. Do the math.
There are teenagers making more money than that from dancing on TikTok.
Sure it’s a good way to save money and form a habit of not overspending, but investing won’t make you rich enough to buy a yacht or travel first class. It will just help you not beg on the streets once the money stops flowing in.
But wait, Warren Buffett made his fortune with investing! No. That’s different. They use option contracts to make majority of their revenue.
Buffett is seen recommending investing in Index Funds all the time, but that’s because 99% of people don’t have the time, talent or discipline to do what it takes to beat the returns of Index Funds.
So how to actually get rich?
It’s simple. Earn more.
Take more risks, start a business, write a book, get another degree, do whatever it takes to make more money.
That’s how you get rich.
Investing never made anyone rich. It just helps in safeguarding what you’ve earned.