Consistency beats brilliance

Most wealth is not built by one brilliant trade but by the same sensible action, repeated for many years. Investing a fixed amount every month is the simplest example.

Through the worst decade

Imagine someone who started investing $500 a month in the S&P 500 in January 2000 — just before the dot-com crash, followed by the financial crisis. The first ten years were miserable. And yet:

By continuing to buy, every crash became a period of buying cheaper. The habit did the work — not the timing.

Why it works

• No timing decisions — you invest when the money arrives, not when the news feels right.
• Crashes help you — the same $500 buys more shares when prices are low.
• It removes the hardest part — deciding to start, again and again.

Where it fails

Consistency only works if you keep going when it hurts. Many people stop paying in after a 30% fall — exactly when it matters most. That is why automation helps: a standing order on payday, chosen once.

Try it: compound interest calculator · savings rate calculator

By Dr. Harry Hamann · 4 min read