How small investors can build big wealth over time
Subscribe to enjoy similar stories. Small investors often feel intimidated by the fancy jargon financial experts use. But you don’t need to understand all that to build Big Wealth.
All you need is a solid investment plan, the discipline to avoid critical mistakes, and the patience to stay on the course. If you stick to these basic principles, you’ll likely do better than most people out there. Let’s dive into each step in more detail.
As the saying goes, failing to plan is planning to fail. A solid investment plan will guide your decisions every step of the way. If you need to consult a financial advisor during this stage, don’t hesitate—it will be worth the cost.
Not having a well-thought-out plan is like entering a dense jungle without a compass to guide you through. The first step of building an investment plan is to set realistic expectations. People basing their expectations from the market based on its recent performance are setting themselves up for disappointment.
Your expectations should be grounded in the long-term performance of the market. Historically, equity markets have delivered average returns of 12–15%, while debt instruments average around 8%. If you have a balanced portfolio with a mix of equity and debt, your returns will likely fall between the two.
The next step is to define your goals. In the pursuit of more money, we sometimes forget that money is not an end in itself—it’s a tool to get the things that you value. Write down your objectives.
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