Some folks hear the word “strategy” and get all nervous. They think strategy is for experts, financial advisors, and investing geeks on social media. If that’s you, take a deep breath! Investment strategy doesn’t have to be complicated. In fact, the best strategies for investments are simple. The K.I.S.S. principle (Keep it simple, stupid) still applies today.

If you follow these simple investment principles and strategies, you’ll be able to make smart investing decisions that will help you build wealth and stay focused no matter what’s happening in your world or in the stock market!

If you don’t understand how an investment works or what it is—if you can’t explain to your best friend what you’re putting hundreds of dollars into every month—then don’t invest in it. Don’t invest in something just because your parents told you to. Don’t pour your hard-earned money into something just because everyone on TikTok is investing in it. And don’t do something just because we recommend it! You’re not ready to invest in something until you know what it is and how it works.

This is why it’s so important to work with a financial advisor or investment professional you trust to help you with your investing plan and answer any questions you have along the way. Find someone with the heart of a teacher—someone willing to sit down and explain things to you until you have a firm grasp of how the investment you’re looking at works. Remember, there is safety in the multitude of counsel, so surround yourself with folks who know their stuff and are winning with money, and do your own homework.

Ramsey Solutions is a paid, non-client promoter of participating pros.

Investing is a marathon, not a sprint. Have you tried running 26.2 miles in a full-on sprint? Trust us, you won’t get very far!

If you’re looking for a “get rich quick” scheme, your story could end in disaster. Ask that friend who sold his house and “invested” all the earnings in Bitcoin how that went. Ask your old college friend who tried her hand day-trading stocks how confident she is about her retirement future.  

We recommend a buy-and-hold strategy for investing—which is exactly what it sounds like. You buy shares of an investment, like a mutual fund (which we’ll get into later), and then hold on to those shares for a long time. Investors with a buy-and-hold mindset will hang on to their shares throughout the inevitable highs and lows of the stock market.

Too many people panic and pull out their money at the first sign of trouble or when the market hits a major low . . . and that’s a terrible mistake because all that does is lock in your losses.

The only people who get hurt on a roller coaster are the ones who jump off—so sit tight, stay invested, and remember that despite all the ups and downs, the market historically trends up over the long term!

If you want to learn a new skill or develop a new habit, consistency isn’t optional—it’s essential. And it’s no different with investing because consistency is the key to building wealth over time. There are no shortcuts! 

We recommend a dollar-cost averaging approach, which is just a fancy way of saying you’re making regular investments over time—no matter what’s happening in the stock market.

If your mutual fund’s price is down, that’s fine—that just means it’s on sale and you’ll be able to buy more shares with the money you invest! If the price of the mutual fund goes up, that’s okay too—that means the shares you already own are worth more.

If you invest 15% of your gross income into your 401(k)s and IRAs month after month, year after year, don’t be surprised to look up one day and see your account balance reach the seven-figure mark.  

During a “Millionaire Theme Hour” on The Ramsey Show, Karen and her husband—both retired schoolteachers in their late 60s living in Madison, Wisconsin—shared how they built a $2.5 million net worth by the time they retired.

In their own words, steady saving and investing over four decades of teaching helped them build a seven-figure nest egg. By the time they retired, they had roughly $1.75 million invested in mutual funds inside of tax-advantaged retirement accounts with a combined income that never exceeded $125,000. The rest of their net worth is in other investments, cash savings, and their house.

“Start saving early, pay yourself first, and take advantage of all the opportunities that your job offers you,” Karen said. “Set goals for yourself, prioritize them, and just take small steps along the way.”

You see? Consistency over time pays off—literally!