Invest early.
Stay consistent.
Ignore noise.
That’s it.
That’s the rule.
The problem?
Nobody follows it.
The Problem: Why People Don’t Follow the 60 Seconds to Wealth Rule
There are a multitude of reasons why people don’t follow this rule, but for the most part it comes down to a few major reasons.
1. Obsession With Timing the Market
Most new investors have this crazy idea that they can time the market over and over again. They think they know when the bottom has hit or when the market can no longer go up.
There was a study by RBC Global Asset Management that showed investors correctly predicted market direction just 3 out of 12 months. Clearly, that is not a recipe for success.
You’re wrong a lot more than you’re right.
To put this into perspective, you would be better off taking that money into a casino and playing blackjack, where you have roughly a 42% chance of winning. Yet we all seem to understand that casinos are not rigged in our favor.
So why do we continue trying to time the market?
2. Lifestyle Creep Eats Away All Your Money
Early in our careers, when we are not making much money, we need to be disciplined and pay ourselves first. However, that largely doesn’t happen, which was evidenced by Reuters reporting that over half of younger people prioritize spending on lifestyle and experiences even at the expense of saving or investing.
Clearly, it’s not a money problem. It’s a priority problem.
You don’t need the fancy car, the luxury apartment, or designer clothes.
You need to build for the future immediately.
3. They Don’t Create Automation
It’s easy to say, “I’ll remember to transfer money to my accounts each month,” or to think you’ll have money left over to move later.
News flash: it’s really freaking hard to do if you don’t automate it.
This was proven by an NBER study that showed automatic enrollment dramatically increases participation rates in retirement accounts.
Don’t fall victim to your own behavior. If you don’t automate it, it’s only a matter of time before you miss a month or stop altogether.
Breaking Down “The 60 Seconds to Wealth Rule”
While we discussed why people don’t follow this rule, let’s dive into the three components of the rule below.
Invest Early
Time matters more than the amount.
A dollar today can compound into many more dollars over the course of 40 years in the market. Don’t believe it? Check out the math in the reality check section below. It will blow your mind.
Stay Consistent
Regular investing will almost always beat trying to time the market, which, as we already know, is basically worse than going to a casino.
Additionally, the beauty of regular investing is that it naturally creates a dollar-cost averaging strategy, which has been known to work wonders over long periods of time.
Ignore the Noise
It’s easy to get caught up in all the negative headlines surrounding the market.
In fact, when the economy seems to be growing, all the so-called experts start saying things like, “This economy is due for a recession.”
But when the market is falling, they don’t predict the turnaround. Instead, they keep saying the market hasn’t hit the floor yet.
Think about this: they don’t have any more insight than you do. They don’t know what the market will do tomorrow, a month from now, or a year from now.
If they did, they would probably be the richest person in the world, not covering the stock market for a paycheck.
Block out the noise and stick to your strategy.
Reality Check: The Power of the 60 Seconds to Wealth Rule
Let’s take a look at a few simple scenarios that show the power of this rule.
Scenario 1
- $500/month
- 10% annual return (~0.83% monthly)
- 30 years (360 months)
Final Value: ≈ $1,139,000
Total invested: $180,000
Scenario 2: Wait 10 Years
- Same $500/month
- Same 10% return
- Only 20 years (240 months)
Final Value: ≈ $379,000
Total invested: $120,000
The Difference
- You invested $60,000 less
- But lost ~$760,000 in potential wealth
The biggest value in this rule isn’t the amount of contributions.
It’s the amount of time you allow your contributions to compound.
The longer compounding works, the more powerful it becomes.
Why Does It Feel Hard to Follow This 60 Seconds to Wealth Rule?
It can be hard to follow this rule because it’s fairly boring, especially at first.
Compounding is a bit like waking up a sleeping bear. The returns are fairly minimal in the beginning and hard to notice with the naked eye.
Additionally, because you see slow progress at first, it’s easy to become discouraged and want to give up. If you invest $500 today and only make a few bucks in the first month, you don’t get that excitement that drives you to keep going.
Lastly, fear tells you that it’s urgent to get out now. Save the precious money you have and wait until “the market is better.”
Logic doesn’t create urgency, so we tend to put it on the back burner.
If you can get past all of this, you will win in the market.
You just need to give it time.
Real-Life Application (Make It Actionable)
The easiest way to follow this rule is by setting up automation within a 401(k), IRA, Roth IRA, or brokerage account.
Stop checking your account constantly and stop obsessing over market news.
Have your employer or bank automatically deposit or transfer a set amount into your preferred investment account as soon as you are paid.
Have those deposits automatically invested.
Closing Punch
Years pass either way.
The question isn’t if time moves.
It’s whether your money moves with it.
Follow the rule outlined above, and your money will move with it.
And one day, your future self will thank you.
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