Key Points
Successful investing doesn't require a deep knowledge of the financial markets.
Regular, consistent investments in an S&P 500 ETF do a great job of building long-term wealth.
Automate your investing to make it even easier.
There's often a misconception that to be a successful investor, you need a deep understanding of the financial markets and the ability to research stocks and other investments effectively. In reality, just a few simple behaviors that anyone can do could get you 90% of the way there.
If you invest in a simple, low-cost index fund, such as the Vanguard S&P 500 ETF (NYSEMKT: VOO) and add to your position consistently on a monthly basis, you'd be amazed to see that even that simple strategy can grow your money to $1 million or more over time.
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That's the power of long-term compounding growth that can be captured with a little patience and discipline.
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Make automation the foundation of your saving habit
Vanguard recently released its annual "How America Saves" report for 2026. Here are a few of the major findings as they relate to Vanguard-administered retirement plans:
- Automatic enrollment has more than tripled since 2007, with 61% of Vanguard defined contribution plans using it by the end of 2025.
- Overall plan participation was 94% in automatically enrolled plans versus just 64% in voluntary enrollment plans.
- Including employee and employer contributions, the average total contribution rate was 12.1% of pay, up nearly two percentage points compared to a decade ago.
The advantage of automation is simple. You don't have to decide whether stocks are too expensive. You don't have to predict what the Federal Reserve will do next. And you don't have to wait until you feel comfortable investing. You simply need to get into the practice of putting your money in the market and keeping it there.
Through an automation process, Vanguard found that the more people participate, the more they save and the faster their account balances grow.
Increase your contributions regularly as well
The easiest way to get started is to automatically invest a percentage of your paycheck in either a workplace retirement plan, such as a 401(k), or a traditional taxable brokerage account.
Try to keep all manual intervention out of the equation. By setting up a payroll deduction and having it automatically sent to where you want it to go, there's a greater likelihood you'll keep doing it over time. Do it long enough, and you won't even miss the money being taken out of your paycheck.
And if you get annual pay raises, the amount you contribute will automatically increase! Better yet, try to increase the amount contributed by 1% per year. It's one of the simplest ways to supercharge your savings.
For most investors, a couple of simple, good decisions, including automating their investing process, could lead to a lifetime of wealth.
David Dierking has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Vanguard S&P 500 ETF. The Motley Fool has a disclosure policy.