People confuse luck for skill when it comes to investments. Your path to wealth isn’t a sprint; it’s a patient, consistent marathon. We tear down the seductive fantasy of getting rich quickly, and reveal why those instant-success pitches are almost always traps preying on your fears of missing out and your desire to get rich quickly. We share why we embrace the boring basics and how, when it comes to money, the simplest, most consistent strategy is truly the best one.
Andrew joins this week’s podcast as we talk about:
– The “get rich quick” fantasy versus the reality of consistent, long-term wealth building
– Why these schemes are often traps that prey on emotions like hope and FOMO
– The reality that higher returns always mean higher risk
– Common red flags of “get rich quick” schemes
– The difference between investing and gambling
– The appeal of complexity (day trading, options) and why it’s dangerous for the average person
– Why do people confuse luck for skill in investing, often chasing higher-risk opportunities
– The power of embracing the boring basics
– Why the simplest strategy (low-cost index funds) is often the most effective
– An analogy to cycling training to illustrate the power of consistency
Show References:
- Book: The Simple Path to Wealth
- Book: The Psychology of Money
- Book: The Art of Spending Money
- Documentary: Dumb Money
- Inside Out Money podcast episode #034 – Predatory marketing tactics and scams – How to spot and avoid them
- Inside Out Money episode #003 – How and why to invest in index funds
- Inside Out Money episode #039 – What’s in our wallet? Our index funds, accounts, and more!
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