In our first post on how to get rich, we counseled saving money. The point of this exercise is not only to accumulate a few bucks, but also to get into the habit of looking for places to save money. That will serve you well, all your life.
Here is our second secret:
Be Patient.
Yes, I know, it seems so… mundane. And as Americans, we are notably impatient. But patience is much overlooked in the quest for wealth. Articles, books, advisers – they all focus on what to buy, only rarely what to sell, and never how to behave once you own what you bought.
Ok, you have to start with a reasonable investment. You can’t buy a dud and be patient and expect great results. But what is wrong with buying a blue chip company or two and holding it for a long time? Basically what you want to do is turn the line on the right, which is how nearly all investments look in the short term, into the line on the left, which is how good investments look over time:
Even if you are not that ambitious, and all you buy is something with a 4% yield, patience pays off. A 4% investment will net you just shy of 50% more than you started with after ten years.
So: save money, and be patient. These are the simple secrets to getting rich.