Getting rich is easier than you think

most important thing you will ever hear about investing: You have no excuse not to do it.

Only three ingredients are needed: income, discipline and time.

Here's how it works: Say you start with nothing, invest $500 (of your income) a month (a healthy discipline), and let your money ride (over time) in diversified investments. Long term, the stock market returns at least 10% annually. Assuming a 10% return, you’d have $102,000 after 10 years, $380,000 after 20 years, and $1.1 million in 30 years.

Yes, saving a bit over a long time is a sure way to growing your nest egg. Why? Because of the power of compounding. The piece goes on to explain this:

Compounding is the reinvestment of the interest you receive from the money you set aside.

“Compounding," Albert Einstein said, "is mankind’s greatest invention because it allows for the reliable, systematic accumulation of wealth.” Einstein was a smart man. But you hardly have to be a genius to make this concept work for you.

But you need more than compounding to help make the most of your money:

The real magic of investing comes when you combine the surprising power of compounding with continuous and regular investments -- in other words, discipline.

The best way to make these continuous investments happen is by setting up an account with a broker or mutual fund that automatically deducts a fixed amount from your bank account every month. “Automatic” is the operative word here.

This is what I do. I have my accounts set up so my paycheck is automatically deposited directly into my checking account. Then, a portion of that is automatically sent to Vanguard every month and then automatically invested in mutual funds I've designated. All of it happens like clockwork without me doing anything. To date, it's worked well and my investments have performed excellently.

Why this process works so well is because 1) it's done automatically and 2) it employs dollar-cost averaging.

The piece ends with a summary we should all keep in mind:

Here's the bottom line, like it or not: The fate of your retirement, your comfort in older age, probably lies in your commitment to the concepts laid out in the paragraphs above. For the vast majority of us, wealth creation is a slow and steady -- and powerful -- process.