Investing early and consistently in index funds can lead to significant long-term growth through compound interest.
Shifting from a consumer-based mindset to an investor-based mindset involves investing in the companies you frequently consume from and owning stock in them.
Deep dives
Investing early and often
Investing early and often is essential to building wealth. Starting with small amounts, even $50 or $100 a month, and consistently investing in index funds such as SPY or VOO, which track the S&P 500, can lead to significant long-term growth due to the power of compound interest.
Changing the mindset from consumer to investor
Shifting from a consumer-based mindset to an investor-based mindset is crucial for building wealth. Instead of focusing on spending money on material possessions, start thinking about how to invest and own stock in the companies you frequently consume from. This includes researching and investing in companies like Apple, Nike, or Mastercard.
Getting rid of time sucks and developing valuable skills
Eliminating time-sucking activities and replacing them with activities that foster personal growth and income-earning potential is important. Instead of mindlessly scrolling through social media or watching Netflix, use that time to learn new skills or start a side hustle. Examples include pressure washing or remote car washing as labor-based options, or digital product creation or providing services such as copywriting or thumbnail design for online businesses.
Conclusion
By investing early and often, changing your mindset to one of ownership and investing, getting rid of time-sucking activities, and developing valuable skills, you can take significant steps towards building wealth and achieving financial success.
In this episode of the Rich Habits Podcast, Robert Croak and Austin Hankwitz share three steps to take if you want to begin working toward becoming the first millionaire in their family: investing early and often, changing your mindset, and learning a new skill.