It's Not Just About the Money, It's About Building Confidence

We all want to see results, right? It's human nature. We want to know that our efforts, time, and money are going to pay off. But when it comes to investing, especially in the stock market or real estate, it's not always a quick win.

I recently had the chance to talk to a group of medical residents about investing. They're on track to make good money, and I wanted to share how they can build wealth. But it's not as simple as just throwing money into the stock market and watching it grow.

Discipline is key. It's hard to keep investing when you don't see immediate results. You might be tempted to pull your money out, especially if the market is down. But if you stick with it, over time, you'll likely see growth.

I showed them an example of a young couple who started investing in 2022. They started small, just putting a few thousand dollars into a Roth IRA. Now, they're maxing out their IRAs, funding a Solo 401k, and investing an additional $15,000 a year. It took time to get there, but they're building a solid foundation.

When you start to see those positive results, it builds confidence. You realize that you're saving and investing a significant amount of money, even though you're doing it a little at a time. It feels good to know you're taking control of your financial future.

And think about someone who's been investing for 30 years. Their cost basis is much lower than their current portfolio value, which is likely worth millions. That's the power of long-term investing.

Here is a visual example of what decades of investing could look like:

So, if you're just starting out, don't get discouraged. Keep investing consistently, and you'll be on your way to building wealth. And remember, it's not just about the money, it's about building confidence in your financial future.

Here are a few more tips for new investors:

• Start small and gradually increase your contributions. This will help you get comfortable with investing and reduce your risk.
• Invest in a diversified portfolio. This will help you spread your risk and reduce your exposure to market volatility.
• Rebalance your portfolio regularly. This will help you maintain your desired asset allocation and ensure you're not taking on too much risk.
• Don't try to time the market. It's impossible to predict when the market will go up or down. Instead, focus on investing for the long term.

Investing can be a powerful tool for building wealth. By following these tips and staying disciplined, you can achieve greatness with your finances.

You have my full endorsement to share this with folks you cherish in your life – they get a free 30 minutes of my time if they need to discuss their finances with me.