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Building Wealth Slowly by taskmaster4450le

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· @taskmaster4450le ·
$3.30
Building Wealth Slowly
Everyone gets hit with the "get rich quick bug".  However, this is not the usual path to amassing large wealth.

Wealth is a long-term game.  Those who seek quick riches can find themselves busted before long.  Those who take the decades approach will locate greater flexibility with less risk.

Let us be honest here, 40 years is a long time.  The average working person put in more than 4 decades before hanging things up.  This is a considerable amount of time to put money away while earning some great returns.  Compounding is certainly our friend.

<center>![image.png](https://images.hive.blog/DQmbARhaCd7S84UUyq6HdKNeraU3LTAyvqH6poaRb32G9M3/image.png)
[Source](https://tse1.mm.bing.net/th?id=OIP.eeo5p2I8xtQM7YR-RA8S2AHaEK&pid=Api)</center>

Kevin O'Leary, of Shark Tank fame, has a simple approach.  He believes that everyone should put $100 a week away.  If this is done, one will be wealthy upon retirement.

In other words, building wealth is not as much a science as it is discipline.  Simply taking the opportunity to "pay yourself" every week will add up over the ensuing decades.

Warren Buffett liked to operate using his famous two rules.  Rule #1: Don't lose money.  Rule #2: Don't forget rule number 1.

What this means is to avoid the large drawdowns.  This can be a problem for those who are seeking to strike it rich in a short period of time. An approach of this manner often leads one to take chances, entering positions he or she should avoid.

The slow approach is boring.  This does not ring true with the CNBC, Fast Money type crowds.  However, when looking to amass wealth, boring is often the best path.

Putting $100 a week into the stock market is not very interesting.  It will not give one a great deal to brag about at dinner parties.  Nevertheless, a quality stock amassed over time can grow into a powerful holding over time.

By the same token, we could operate on the same premise with Bitcoin.  If one is buying this asset each week, even $100 worth, the individual will see his or her account explode over the next decade or two.  

The aforementioned Buffett has gained the title as "Greatest Investor in the World" by earning a 20% return each year.  Everyone wants to discuss the 100% and 200% returns to discuss at dinner parties.  However, consistency over long periods of time can add up.

Another factor in this is the idea of expertise.  By putting $100 a week into the market, one can get very focused with his or her investments.  What this means, is that a person in this position is likely only going to opt for one or two investments.  This allows for one to amass some expertise.

By knowing the investment, inside and out, one can feel confident putting money in on a weekly basis.  Of course, if something changes that is to the negative, one can always sell and move onto something else.  Investment that are winners over 5 or 10 years can turn into losers for a variety of reasons.

Nevertheless, the key is to be in the game.  Unfortunately, most do not have vast resources to enter.  For this reason, the idea of small amounts consistently put it will add up over time.  This is the best way to put compounding into action.

___
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vote details (119)
@aiovo ·
i agree with you just like if you have community that is build with lots of hard work
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@badseedalchemist ·
Right on...

The 'path to riches' - turns - 'looking back wishing you weren't broke' is definitely something I have victimized myself with in the past. Lol.

You live an learn (if you are like me, maybe a little more slowly than others). I'm pretty dedicated to never trading derivatives in crypto again... at least not with any amount that can hurt...

A great point you brought up about over time! Was it you who posted about the 170% ROI average when investing in anything over a longer stretch, even if you are buying into a bear market? I think the information was a Bitcoin trading strategy intended to work with the halvings...

Anyway... great post!

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@behiver ·
Well said and proofing with such an investor knowledge should make us do the same. If I am thinking about my situation now I can say that I am just a consumer, maybe an investor, but never thought of putting some savings aside. Probably I should start doing that looking at the future as without it there will come harsh times at a point.

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@chekohler ·
I keep telling myself it's not about timing the market its about time in the market, I try to take profits regularly in small amounts I call it microdosing so I reduce the risk on my principle but I stay in as long as possible, always dollar costing in and finding new ways to rebalance. It's a lot of work too so I get why people don't want to do it and just jump in and jump out. Time can't be beaten, nor can compound interest, and that's the side I want to be on when riding the tide

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@coyotelation ·
Investing with a long-term goal is the best alternative for you to have good financial results.

Of course, for cryptocurrencies we can achieve incredible gains, but in a market where there are more exoeculations and also with its famous volatilities, those who want to invest in the short term can lose everything very quickly. These are risks that many decide to take and there are only a few successful cases.

An alternative for those who want to start investing but without much capital to start would be to attend the Hive blockchain because here we have several alternatives for those who start from scratch.

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@hivepower100 ·
Hola taskmaster4450le,

Gracias por destinar correctamente el 100% de las recompensas de está publicación a HP y ayudar al crecimiento de tu cuenta.

>Thanks for allocating the 100% rewards of this publication to Hivepower.

<sub><em>Si no deseas recibir notificaciones, responde a este comentario con la palabra </em> `STOP`</sub>.


<blockquote><sub>If you don't want to be notified, answer this comment with the word </em> `STOP`</sub>.</blockquote>
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@pixresteemer ·
<center>![pixresteemer_incognito_angel_mini.png](https://files.peakd.com/file/peakd-hive/pixresteemer/8h7BBw1w-pixresteemer_incognito_angel_mini.png)</center><center>Bang, I did it again... I just rehived your post!</center><center>Week 24 of my [contest](/hive-179017/@pixresteemer/the-re-hive-contest-results-week-23-and-start-week-24) just started...you can now check the winners of the previous week!</center><center><sub>2</sub></center>
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