Simple Investing Advice You Can Follow To Build Your Wealth

If you were looking to lose some weight, some simple (but great) advice could be switching to a good diet and having regular exercise.

But when it comes to investing well, the advice you get always seems a little more complicated. Too often, it – the advice – may come in the form of convoluted chart patterns, short term trends, and/or foreign-looking Greek symbols.

It occurred to me that your investing life could be simplified. But only if you let it.

“Work hard, spend little, invest the difference”

I came across the simple investing advice above from Straits Time correspondent Goh Eng Yeow, and I agree with him on this one – especially in its simplicity.

As hard working Fools, every dollar we make is precious and can contribute to our future financial well-being. As such, we would do well if we are able to live within our own means and spend less.

But don’t worry if you find budgeting a tough thing to do – we have some Foolish suggestions on how to gain control of your own money.

The idea of spending less is step number three in the Fool’s 13 Steps To Financial Freedom. Furthermore, there’re also a bunch of 60 second guides on anything from home loans to putting up a rainy day fund on our site – check them out!

Taking actions to spend your capital in a prudent – yet no less fulfilling – manner may help put you on a steady financial footing and move you to the next step – investing the difference.

Invest your savings

The good news is that investing your savings can also be kept as simple as possible.

For instance, dollar cost averaging into the SPDR STI ETF (SGX: ES3) – a proxy for the Straits Times Index (SGX: ^STI) – could be one option. Since inception nearly 13 years ago in April 2002, the SPDR STI ETF has achieved an average annual compounded return of 8.55%. At that rate, you could well double your money every 8.5 years.

Foolish takeaway

All in, like most good advice, it pays to keep it simple. As such, keep your own investing plan simple, executable and ultimately, profitable.

To learn more about Foolish investing and to keep up to date on the latest financial and stock market news, sign up for a FREE subscription to The Motley Fool's weekly investing newsletter, Take Stock Singapore

Also, like us on Facebook to follow our latest hot articles.

The Motley Fool's purpose is to help the world invest, better

The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Chin Hui Leong doesn’t own shares in any companies mentioned.