When it comes to building wealth, the best approach is to avoid trying to get rich quick and adopt a get-rich-slow mindset.
Money expert Dave Ramsey once tweeted that he found research indicating that the #1 correlating factor for people who build wealth through investing is “that they actually invest.”
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Concretely, what does investing mean? Here’s how Ramsey says investing can help you build real, lasting wealth over time.
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What “Really Investing” Means
In the video accompanying the tweet, Ramsey shared the four types of mutual funds he invests in: growth, growth and income, aggressive growth and international – as well as his investment strategy.
“I invest in these during ups and downs and anytime,” Ramsey said. “I never stop.”
Real investing means investing consistently. Ramsey suggests that the one thing savvy investors should do is simply not stop investing. Start investing and keep investing, no matter what.
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What does it mean to invest in mutual funds?
Mutual funds are professionally managed investments that allow investors to pool their money to invest in something. A team of professionals works to select the stocks, bonds and other investment options included in mutual funds.
Mutual funds made up of stocks are called stock mutual funds, while those made up of bonds are called bond mutual funds. Besides the growth funds mentioned by Ramsey, there are many other types of mutual funds. Some of them include value funds, income funds, index funds, money market funds, sector funds and hybrid mutual funds.
By investing in mutual funds, you will enjoy three benefits that will help you build your wealth. According to a Ramsey Solutions blog post, these benefits include instant portfolio diversification, lower costs, and active management with mutual funds managed by a team of investment experts.
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This article originally appeared on GOBankingRates.com: ‘Get rich slowly’: Dave Ramsey offers the key to lasting wealth
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