Many people think that you have to earn a good living to build wealth. An investment manager sees things differently: she believes that a single strategy really makes the difference over several decades.
Between those who wait for the markets to fall, those who hope to receive a bonus before starting and those who think that investing is reserved for the wealthiest, many French people are postponing the moment to put their savings to work. However, this postponement can be very expensive in the long term. For Laura Longley, investment manager, there is only one rule that proves effective for building wealth over time.
First of all, the first misconception is to believe that you must already have a lot of money. Laura Longley explains it this way: “The biggest misconception about investing is… that it’s only for the wealthy. In reality, it’s much more accessible than you think and can play a major role in achieving long-term financial goals.” In France, it is now possible to invest gradually thanks to accessible solutions, such as life insurance, a PEA or ETFs. Waiting until you have several thousand euros saved is therefore not an obligation. On the contrary, this reflex can waste precious years.
Another trap: absolutely wanting to invest at the best time. Many monitor the markets for months, convinced that they will recognize the ideal moment to buy. Others let themselves be convinced by the investments that create the buzz, hoping to reproduce the performances that everyone is talking about. In reality, acting this way is unlikely to work. “Be patient and understand what you are investing in. It is very easy to get caught up in the hype or follow the bandwagon, leading you to invest at the highest level“, warns the specialist. Clearly, buying because everyone is buying is rarely a good idea.
For her, the best strategy for pocketing as much money as possible over the course of her life is based on two habits: start saving as early as possible and invest regularly. “This can have a considerable impact in the long term”summarizes Laura Longley. The earlier you start saving, even with small amounts, the more time your capital has to grow over the years. Then, you must avoid letting this money sit in a current account or a low-paying savings account. Concretely, the idea is to invest a fixed sum every month, for example 50, 100 or 200 euros, in an investment adapted to your profile, such as life insurance or a PEA.
This allows you to continue investing regardless of market conditions, without trying to guess the best time to buy. Over time, the gains generated by investments will themselves produce new gains. It is precisely this strategy that offers the best chances of building up a lot of wealth according to this financial manager.
