1.   Save at least 10% of your net take-home pay. Can’t seem to save?  Mostly it’s a matter of discipline. Make a budget.  Cut back on discretionary expenditures and create an automatic savings plan.

 

2.   Invest in a diversified group of low-cost, no-load index funds. That way if one goes south, you’ll have other funds that balance out your portfolio.

 

3.   Think long term. The more you trade, the less you’ll make.  Investment winners know the power of waiting.  They’re in it for the long haul, and they aren’t hit with frequent transaction fees and taxes.

 

4.   Focus on the power of compounding interest. Compounding interest can turn a small investment into a sizable sum of money over time.

 

5.   Buy quality, proven index funds, with long-term track records. When you buy solid funds, you won’t be tempted to sell, and the long-term investor almost always wins the race.

 

 

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