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    The key to saving money is like watching paint dry

    It is magic—you just save, invest wisely and unemotionally, and you have wealth at the end.  Really.

    One of hardest beliefs to relay to those who want to be financially secure are the basic tenets of saving “enough” and being patient for a long time.  During this long process, the investing must be in a careful and unemotional disciplined manner. 

    It works every time—but it is like watching the proverbial paint dry.

    What doesn’t work?  Almost anything but this.

    Read more from Steven Podnos here

    Not saving enough (for most families, at least 15-20% of income from a young age) is a certain way to fail.  Not being patient for many years as your accounts swing up and down in price is a recipe for failure as well.

    Investing by buying what is “hot” and selling when scared is a sure thing for a bad outcome.  Even just watching your portfolio too closely usually ends up with mistakes being made.  Not being diversified is a mistake, as you end up concentrated in the asset classes that have finished doing well, and underinvested in those with a brighter future.

    I’m not saying it is easy.  It isn’t.  It’s hard.  Few investors do it well.  Some investment advisors fail when they succumb to the fear of losing clients who seek “performance.” 

    Next: Slow but steady wins the race

    Steven Podnos MD, CFP
    Steven Podnos, MD, CFP, is the principal of Wealth Care, LLC in Merritt Island, Florida.

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