DIGIVESTASI - New Year resolutions are often a moment for individuals to plan financial goals, such as paying off debt or increasing savings. While building significant wealth may not be achievable in a single year, there are strategic steps that can help grow assets, regardless of your starting point.

According to CNBC on Sunday (12/29), here are three investment tips from millionaires who have successfully built their wealth.

1. Keep It Simple

Investment strategies don’t need to be complicated to achieve long-term wealth. In fact, simple approaches are often more effective. One method is to invest in low-cost index funds that track market performance.

For example, funds that follow the S&P 500 index offer diversification without the high management fees that can eat into investor profits. "Many people believe that the wealthy have access to secret investments that make them richer," says Ramit Sethi, a financial expert and self-made millionaire.

"I have access to those investments, and I can tell you they’re usually no better than simple index funds like the S&P 500," he adds. Avoiding the temptation to chase investment trends such as cryptocurrency or specific high-performing stocks is also crucial. Diversifying your portfolio, maintaining appropriate risk levels, and investing consistently are more likely to yield stable returns.

2. Start Early and Automate

When it comes to building wealth, time is an irreplaceable asset. Starting investments as early as possible allows you to benefit from the power of compound interest. "One thing I wish I had done more is save and, especially, invest more aggressively," says Steve Adcock, a self-made millionaire who retired early.

He adds that the longer you invest, the more money you’re likely to have at retirement. Adcock recommends automating your investments, such as setting up automatic contributions from your paycheck into a 401(k) retirement plan. Sethi agrees, stating that this is a simple way to build the habit of investing. "My best advice for people in their 20s is to set up automatic investments," he says.

3. Recognize Warning Signs

You don’t need to be a professional to start investing, but choosing the wrong financial advisor can be more harmful than helpful. Tess Waresmith, a self-made millionaire, learned this lesson the hard way.

Previously, she relied on a financial advisor to manage the savings she earned working on a cruise ship. However, poor decisions made by the advisor resulted in financial losses. "With stock market investments, I was afraid of making mistakes, so I hired a financial advisor. But they made many bad decisions on my behalf," Waresmith recalls.

Now, she recommends selecting fee-only advisors who charge a fixed fee rather than taking a percentage of your investment earnings. She also emphasizes the importance of having basic investment knowledge to identify red flags, such as a lack of transparency in money management or unclear advisor compensation structures.

"You don’t need a Ph.D. in investing. Reading one or two books or taking a single course is enough," she concludes.

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