Focus on your income rather than your investments!

Investment returns are not correlated with time spent on stock research

With all the fancy Wall Street firepower using supercomputers and algorithmic trading and a large fleet of analysts, one would think: to do well I need to spend a lot of time researching and tracking the stock market! That couldn’t be further from the truth! In fact, most of those fancy mutual fund managers are not able to beat an index fund over the long term. So why even spend so much time and effort to try to beat the market ?

Your investments should be on autopilot.

Your dollars should be able to grow without compulsive tweaking every day. Index funds require minimal research to get started. You just need a broad based index fund that covers most of the market and which has low fees (In the US the best index funds are below 0.1% in fees, sometimes even zero). Over time, as you grow older, you will make slight changes in your asset allocation, but for the most part, you are free to focus on other parts of life. Whether its your career, family or passions.

Earn and save more so you can invest more

If you have a limited savings rate, your main focus should be on how you can increase your regular income. Try to get ahead in your career or start a side hustle and leave your investments on set-it-and-forget-it mode. That increased income will give you more money to afford to save more. These savings will be passively invested in index funds. You will definitely do much better and be less stressed!