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NOW,Investing For Beginners | Advice On How To Get Started


Investing For Beginners | Advice On How To Get Started

Investing For Beginners | Advice On How To Get Started hey everyone Stefan here from project life mastery command in this video I'm going to talk to you a little bit about investing for beginners how to get ed
What's the best way to get ed and
What advice do I have for people that are brand new now to give you guys an idea I got ed investing
When I was years old and Im now years old today at the time I didn't know anything about investing but I was reading these self-help books and I read some books on finances and just learned some basics about investing and I realized the most important thing is to as early as possible because the earlier that you have to investing then the more beneficial its going to be later in your life because then you could take advantage of compounding
Which Einstein said is the ninth wonder of the world and you know Warren Buffett all these investment gurus all talk about the power of compounding I learned some basic things about that and so I knew at years old I needed to get ed and of course the earlier that you then the sooner that you can make mistakes you can learn from those mistakes you have much higher risk tolerance because a mistake that you might make is not going to be as costly as opposed to if youre in your 30s or 40s or 50s or 60s
Where you got to be a little bit more cautious and more conservative in your investment strategy so I was years old the first book that I read on investing was called a wealthy barber by Dave David Chilton and its more of a book gear towards Canadians but it basically taught the principles of paying yourself first first and foremost the number one rule that the most important thing is to pay yourself first and to invest on a monthly basis an ongoing basis so that you can take advantage of
What is called dollar cost averaging and have your investments at your money compound over a period of time and Im going to explain a little bit
What I mean about those but just to going back to my story I got ed

When I was I with about I think is my first investment

 in a mutual fund it was actually the Bank of Montreal mutual fund here in Canada I ed putting aside dollars a month on a pre authorized payment plan to constantly buy more shares of that fund on a monthly basis I think
When I was years old I made a investment to another mutual fund and you know invest in a few other different things and then I just kind of stopped I mean I was always kind of putting money aside every month paying myself first but I didnt really do any active investing for a
While but I did remember a number of years ago I did buy Apple Apple stock and I had a great return from that I did buy Facebook
When Facebook just went public a number of years ago and I made some money from that but at the time I didnt have a lot of money to invest and so I literally I remember buying like you know six hundred dollars worth of shares of Facebook and eight hundred dollars with the shares on Apples so even though I did make some good returns like percentagewise the return was really only a couple hundred bucks or a thousand bucks or something like that but since then to give you guys an idea Ive done very well of business Ive learned a lot more about investing at thirty years old I bought a real estate property a number of years ago I think in that is a rental property that I rent out I make a little bit of a passive income from that as well as the capital growth of that Ive also gotten over million dollar investment portfolio of just stocks I no longer invest in mutual funds actually I do have one mutual fund still but primarily a stock portfolio that consists a bluechip stocks index funds a variety of different sectors a lot of dividend paying stocks some real estate investment trusts bonds a number of different investments and Ive also invested in private businesses Ive also done alone as well and so Im going to go over some of the strategies and just kind of give more basic advice but I want to give you guys an idea that I ed from nothing and Ive been able to build myself up to you know a millionaire today at thirty years old so
What Im going to share with you can definitely help you theyre just getting ed it can take time of course but Im going to show you some just very basic principles that are really important for you to understand now the first and most important thing is to pay yourself first and thats the first thing theyre going to learn in any investment book or financial book out there because you need money to invest you need money that you can put aside to save or invest or
Whatever it is and if you dont have that if you cant take a percentage of
What you make and put that aside then theres no hope for you to be able to grow your net worth and be able to make more money and so
Whatever amount of money that youre making right now
Whether its a month a month or more you got to make a decision the most important financial decision of your life
Which is that youre going to take a percentage of
What you make and I recommend percent at minimum take percent and youre going to put that aside and pay yourself first youre going to put it in a savings account or an investment account or some other account that youre not going to touch very important okay now you might be saying well I dont have the money to do this I live monthtomonth um well maybe the step before that thats actually even more important is youve got to manage your money youve got to manage your finances and youve got to pay attention to it on a weekly and a monthly basis because you should never be in a position
Where youre living months a month thats a horrible position to be in that position means that youre never going to be able to get ahead in your life because living month month basically means that your expenses are here and your income is here and so you know
Whenever income that youre making is going right towards your expenses and the only other options to be able to pay yourself is either you need to make more money and so that and keep your expenses
Where theyre at so make more so that you have a positive cash flow you can then take that money and pay yourself first or youve got to lower your expenses now for most people the best thing to do is to lower your expenses cut down on your current living expenses because if youre living a month a month that you cant afford to live the way that youre living youre living beyond your means and thats not smart financially most people that live in a house or they rent an apartment or rent something that they cant they cant afford they have a car that they cant afford theyre buying food and luxury is that they cant afford and youre going to make a sacrifice and this is coming from someone I was in debt and one point of my life
When I came to this realization I had to make a sacrifice I had to for example I did move back into my parents house or I had to live with my friend on his couch for several months
Where I had to uh you know eat you know you know eat at home and you know not eat out as much or not go out as much or take the bus and get rid of my car these are all sacrifices that you might need to make in order to bring down your expenses so that you have that positive cash flow very important okay look at your current lifestyle now look to see it set a budget for yourself that youre not going to spend more than X amount of money anything in excess youre going to save that youre going to pay yourself first the reason
Why they say pay yourself first is because youre supposed to pay yourself that money before anything else before you pay your bills your rent or anything else okay thats how important that you have to make this okay so thats the first step maybe Ill do another video that go into managing money and financing but you got to pay yourself first ten percent I dont care if thats a hundred bucks a month twentyfive dollars a month thousand dollars a month you got to make sure that youre doing that to give you guys an idea I ed that way but now because my business and my cash flow is really big Im able to pay myself like eighty percent of
What I make right just because I have low expenses and very high margins in my business and so therefore Im able to literally tens of thousands of dollars every month invest that and invest that to it to be able to grow more my portfolio and everything like that so you want to be in that position rehab positive cash flow number one number two is you need to make sure that you have an emergency fund of savings okay very important if you dont have that then youre going to be in trouble okay typically
What all the financial books say you want to have at least three months to six months of savings
Which is typical of your expenses so if your expenses every month is a month and by the way youve got to know
What those numbers are you got to know exactly

What youre spending every month and

What youre making every month if you cant tell me those numbers youre going to be in financial trouble okay you got to know those numbers off the top of your head so if its a month thats your expenses then you need to put aside at least six thousand to twelve thousand dollars in savings as an emergency in case something happens to your job in case a disability happens in case something happens to your business
Who knows
What can happen but you got to have that emergency font very important okay next once you have that emergency fund of three to six months okay and if youre more its going to be more conservative you can do more than that if youre more risk tolerance you can do less but three months at minimum okay important now once youve done that youre going to have an extra positive cash flow
Where youre going to be paying yourself and youre going to have that money go into a savings
What do you do with that money how do you invest it well you got to explore the different investments that exist now the number one investment that you can make the number one according to Warren Buffett and you know the multi billionaire investor the best investment you can make is not in real estate not in stocks not in your business its in yourself thats the number one investment that you can make and then by yourself
What I mean by that is investing in your knowledge developing your skills your confidence your beliefs self development learning about finances learning about business learning about marketing all the different skills youve got to invest in yourself all the most successful people in the world all understand this and the truth is is that if you could invest in yourself thats
Whats going to bring you the highest return out of anything else because if you continue down the path you are and you dont invest in yourself then youre going to continue getting
What youve always gone and by investing in yourself youre going to be able to learn the skills and the confidence the habits etc that can help you make more money and make better decisions in your life
Which are going to make you a lot more money so for me I realize this I realized that I needed to invest in books number one I needed to read and if you want to earn more you got to learn more so I just ed reading books I ed studying I ed going to courses and products and video training and audio training and seminars the coaches etc to continuously develop myself okay very important thats the most important thing the second most important thing that I think youre going to get that best return from besides yourself is your own business now a business is something that has a high potential for reward because you are in control of the business in fact it is directly related to you the more that you improve yourself the more that your business will succeed and you always want to bet on yourself more than anyone else so betting on yourself investing money in a business
Whether its an online business or
Whatever it is that has a higher potential of growth and its going to be a lot less risky because you have more control over it as well so that might be getting ed on an Amazon business or a publishing business or developing a blog and doing affiliate marketing or doing your own products or an app or a software
Whatever that is youre going to need money to invest and build that and to build a market into it you want to have that advantage to be able to grow it okay so thats the number two biggest investment that I believe that you can make and for me a lot of the money that I make I put it in myself Im always going to seminars courses even though Ive made a lot of money Im still investing even more myself I have coaches I read books I do all that sort of stuff continuously today I invest in my business because my business is a sevenfigure your business it has the potential to grow even beyond that and Im going to get the highest returns in my business okay very important the other options that you have would be stocks the real estate investing privately in other businesses loaning money bonds theres a lot of different investment vehicles out there and you can explore you know a number of the different ones Im not an expert on the
Whole of them to be honest with you I think your business is always the best because you know that the most you understand it the most

Whereas other investments you might not understand

 or know much about but you want to explore the different options for me personally I like stocks primarily index funds is great in fact Warren Buffett thats his advice for most is to invest in an index fund an index fund is basically a stock or a mutual fund that has very low fees like ridiculously low fees but its basically owning a segment of a market so for example theres index funds that you can own the SP
Which is the United States the top companies in the United States you can own an index thats diversified and owning a piece of all of those companies you can own an index fund of the TSX the Toronto Stock Exchange that will own you know the companies the top companies that are in Canada you can own index funds that will own the
Whole world economy or different markets or volunteers many different types of index funds that are out there but index funds are great because as the economy goes up your investment goes up you make more money
When it goes down it goes down now
When owning
When investing the best advice that I have also is to invest longterm have the longterm mentality dont be caught up in the
Whole getrichquick mentality because thats
Whats going to lead you to making a lot of bad decisions and youre going to get into trouble I believe in investing longterm and some investments that I make I invest in businesses and stocks that longterm are going to have a positive return a positive yield um and depending how old you are you know if youre watching this and youre less than you know forty years old or even years old you have a lot of time on your hands and so you have the time to wait and so for me
When I invest in index funds or other stocks its going to go up and its going to go down but I actually enjoy it
When it goes down going down is a good thing if youre investing in index funds or if youre investing in blue chip companies or stocks that are very secure because
When things go down thats an opportunity for you to buy more at a discount buy more shares because you know it most you know the economy always recovers recessions depressions they always recover and you know if youre owning index funds you know for example in
When the recession happened there was a great opportunity for you to buy and more and if you did if you were investing and buying a lot in if you own an index fund or were buying a lot of stocks during that time today youd be worth you know that theres a lot of money so invest longterm invest on a monthly basis as well thats called as known as dollar cost averaging because the stock market is always volatile ups and downs but if you invest every month basically its going to even itself out theres gonna be times youre going to buy high theres gonna be times are going to buy low but overall by investing and buying every month the trend is always going to go up and its going to always you know be better off for you so dollar cost averaging investing every month very important saving paying or sulfurs every month investing in yourself every month
Whatever that might be so I personally prefer stocks I enjoy them because theyre very low maintenance index funds are really are pretty safe low fees you can get dividends on index funds as well
Which means that you can actually get paid a dividend either every month or every quarter or every year depending on
What the payout is so thats a pass passive income then also you can actually set up a lot of these investments and stocks on a drip
Which means that
When you get paid the dividend it will automatically buy more shares for you
Which is great because then youre buying more shares and then if you focus longterm then you have the benefit of compounding over a long period of time now index funds I think are a must for every portfolio uh you know other options or owning you know blue chip stocks I like them own a lot of banks and cant I live in Canada I primarily invest in Canada although I do do some investments in the US banks are good they pay good dividends here theyre very secure for example Bank of Montreal here in Canada has not missed a dividend payment in over a hundred years so thats going through depressions and recessions and you know the bank system is very secure here in Canada you know theres no risk of them collapsing or anything like that and so if it goes down great I can buy more its going to eventually go back up anyways real estate investment trusts I like as well because although I do own a real estate property Im not a big fan of owning real estate because theres more maintenance involved theres more problems that happen and if you really want to scale it you need a property manager
Which youre going to have to pay usually five to ten percent of
Whatever the rent is just to manage the property for you and if I wont real estate now for three years and I havent really enjoyed it as much
Whereas real estate investment trust means that I can own a company that owns real estate and I can I can invest in them and that way I benefit from the real estate market
Whether it goes up or down I can easily get out of it
Whereas most real estate can be hard to get out of and liquidate and I can get paid a dividend from that as well and I dont have to manage it so I enjoy REITs real estate investment trusts as well so you know I think learning the different sectors the different models the different vehicles is important you know reading books on that I think is very important as well but index funds would be the simplest advice that give for beginners to get ed with and do some research on those and then real estate is another thing as well and doing the research on that and I think its important to make sure that you get ed as soon as possible although at times youre going to want to make sure youre very strategic about the investments that youre making youre not just you know buying real estate if the markets hot and its not a good opportunity to you know for example right now in Vancouver the real estate market is ridiculous I personally would not buy right now it just doesnt make any sense Id much rather use that money invest it in stocks or other vehicles that exist out there as well so I know it kind of sprinkled a lot of different advice here for you but just to kind of recap pay yourself first ten percent ideally invest in yourself make sure that you have good savings so three to six months or expenses invest in the business if you have one or other peoples businesses stocks and you know explore the different opportunities invest long term I like to invest to get a passive income specifically in dividends and I you know I personally dont enjoy mutual funds as much even though I still do own one a great book that can help you is Tony Robbins book called money master the game as well as the books by Robert Kiyosaki such as Rich Dad Poor Dad cash flow quadrant these are all great books that can help you as well to understand a little bit more but I think these are the most important things and just kind of getting yourself in a position
Where you have the money to invest and you dont need a lot of money to invest I think thats a misconception as well just get ed with a couple hundred bucks and make sure that you build up that savings as well and you manage your money because thats really the most important thing if you dont do that it doesnt matter how much money you have you cant manage it then youre going to lose it youre going to youre going to make a lot of poor decisions and make a lot of mistakes and to get ed with stocks theres trading accounts that you can get set up most banks they have their own trading accounts you know here in Canada you know RBC and Scotia I trade and obviously has Direct Investing and then theres quest trade and a number of different ones out there that exist and usually
What they do is they take a fee based on the trade and so for every trade that you make theyll usually take maybe twenty dollars ten dollars and usually the more that youre in portfolio that you have the cheaper it gets or the more training that you do on a regular basis the cheaper it gets as well but if youre investing through a trading account then theyre going to take their fee based on any trade that you make and then of course depending
Where you live this will be the last piece that Ill give you guys you want to take advantage of any tax you know tax deferral systems that you guys might have and so for example in Canada we have
What is called a TFSA taxfree savings account right now at the time of this video you can put in fifty five hundred dollars a year that will grow taxfree very important to take advantage of that and max that out the United States you guys have something different you know you guys had referral one case or IRAs and all the different things you guys have not totally familiar with the US
What you guys do but make sure that you guys take advantage of that because thats also very important all right so thats a lot of advice a lot of beginner basic stuff for you guys a little bit of the mindset
Which is very important as well but hopefully this can help you get ed investing and if you guys have questions leave a comment below I might do more videos on this subject as well I do have a great video that shares my million dollar investment portfolio Ive grown it a lot since then as well but Ill probably do some more videos as well as a video on managing your finances because thats very important also so make sure that you subscribe for more videos hit the thumbs up button if you enjoyed this video leave a comment below and check out some of the links below as well because I have resources that can help you invest in yourself and prove yourself as well as be able to build an online business if youd like and invest in Matt to build that as well so you can make passive income and make money that you can invest with so hopefully you enjoyed this video thank you guys for watching Ill see you guys in the next one take care you '