The best approach to building wealth is to avoid getting rich quick and adopt a get-rich-quick mindset.money expert Dave Ramsey recently tweeted He said he found research to be the greatest correlator with people who: build wealth by investing It’s “whether they’re actually investing.”
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What does it actually mean to invest? Here’s how investing can help you build real, lasting wealth over the long term.
What does it mean to “invest”?
In a video that accompanied the tweet, Ramsey shared his investment strategy along with four types of mutual funds: Growth, Growth and Earnings, Aggressive Growth and International.
“I invest in them all the time, whether it’s uptime or downtime,” Ramsey said. “I never stop.”
To actually invest means to continue to invest. Ramsey suggests that one thing smart 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 and invest in something. A team of experts handpicks the stocks, bonds and other investment options included in mutual funds.
Mutual funds made up of stocks are called stock mutual funds, while mutual funds made up of bonds are called bond mutual funds. In addition to the growth funds Ramsey mentioned, there are many other types of mutual funds. These include value funds, income funds, index funds, money market funds, sector funds, hybrid he mutual funds, and more.
Investing in mutual funds offers three benefits that help build wealth. According to a Ramsey Solutions blog post, these benefits include instant portfolio diversification, reduced costs and active management with mutual funds managed by a team of investment professionals.
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This article was originally published on GOBankingRates.com: ‘Getting Rich Slowly’: Dave Ramsey Offers Keys to Perpetuating Wealth