The Lazy Investor’s Guide to Building Wealth Automatically

Build wealth quietly and consistently

Photo by Edward Howell on Unsplash

Investing does not have to be complex, intimidating, or time-consuming. In fact, some of the most successful long-term investors build wealth quietly and consistently by sticking to simple principles and automating their process. This guide is designed for the so-called lazy investor: someone who wants to grow their money steadily without having to check the markets every day or make constant adjustments.

The Power of Compounding

One of the most essential tools in a lazy investor’s arsenal is compound interest. Compounding is the process where your money earns returns, and then those returns start to earn returns themselves. Over time, this creates exponential growth. For example, investing just $200 a month in a basic index fund with a 7 percent annual return can result in over $500,000 in 35 years. The key is consistency and starting early.

Automate Your Contributions

To truly embrace lazy investing, automation is critical. Set up automatic transfers from your checking account to your investment accounts on a regular schedule. Whether it is once a month or twice a month, the key is that it happens without you thinking about it. Most employer-sponsored retirement plans, like…