Investing your money in the stock market doesn’t have to be difficult or stressful and you certainly don’t have to spend dozens of hours researching to succeed for the long-term. In fact, I would argue that the most effective long-term wealth building strategy for the stock market also happens to be the simplest. We love the Total US Stock Market Index Fund (VTSAX) or S&P 500 Index Fund from Vanguard,
Spending less and earning more are both important to create savings, but your work isn’t done. The whole reason we want to widen the gap between our spending and income is to increase the amount of money available to invest. The goal is to let your money work for you.
The key is to balance your risk vs reward in a simplified way. You can do this by investing in stocks and bonds without having to be an expert or picking a winner and “gambling” on the performance of a specific company.