We make the investing complex for us but actually, it should be as simple as possible. The only thing that should go with investing is the focus. Before that let's go through a chart which Albert Einstein has said way back. It is called Albert Einstein's five ascending levels of intellect and you will be surprised to know that Simple comes at the top.
PC: Google.com
The rule is simple, you have to keep it simple. And we try to overcomplicate it by trying a lot of different things. Let's take an example of SIP which is the simplest way to invest, you don't have to do anything extra. Just keep it simple and continue doing the SIP.
Again we have so many thousands of MFs out there, so to make it simple we just have to invest in index funds just take 2-3 index funds and do it. So the simplest way to invest is to start a SIP preferably on 1st day of the month in some index funds and you will be sorted. You don't have to do some extra things for investment and creation of your wealth.
Also, there are so many financial products in the market and that makes people go FOMO (Fear of Missing Out) but again those will not make your life simple. And with so many things your mind will always be distracted. In the end, it can give 1-2% extra or might be a loss of 1-2% but if we have a simple method you can choose to relax and focus on other things.
Along with simplicity, we have to keep the focus on our goal. What I have done is to create separate goals for my retirement, and my child's education and every month SIP debits from my bank all I have to do is to keep the amount in my bank account before the investment date and it auto debits. Along with that, I do 80% of my investment in Index funds and last year started an ETF shop so that I can get a monthly dividend of my investment.
