How To Invest For Beginners (Full Guide)

– Hello, it's Mark. In this video, I'll reveal the investment strategies I used to go from novice investor with very little money to millionaire by age 35 and how you can do the exact same thing. I have a simple question for you. Do you want to be here rich and enjoy the freedom that comes with financial stability? Many people do that. Why do you think there are so many get-rich-quick schemes out there? Most people, unfortunately, have a lottery mentality. They're just waiting for the magic fairy to come down and hand them a million dollars. Do I look like a magical fairy to you? If the answer is no, and I really hope it is no, then smash the like button and subscribe to the channel.

The truth is, as many people believe, winning a chunk of money will make your problems go away, but there will be an absolute shock. Without the right investment and mindset strategies , it will all be gone , and in no time, you will be back to square one. You need a solid, consistent investment plan that gradually builds your wealth over time. Long-term investment will give great returns. When I was younger, I always wanted to be a race car driver. I loved everything about cars but I didn't have enough money to pursue my dreams. But as I started building my investments, it allowed me to race in multiple championships and win countless trophies like this. I even got my helmet here, you sometimes sit in the back of the shots. How cool is that? My investments allow me to spend time having fun creating YouTube videos, like the one you're watching. I'm not currently making any money from this channel and you can sit back and relax because I won't end up trying to sell you something either. There are many different investments out there.

It's very easy to get distracted by the next shiny object. It's also confusing when someone tells you this is the best thing, the latest and greatest , and if you don't invest, you could end up losing thousands. You may have heard of bitcoins, penny stocks, and shorting stocks, but I've found that the key for me, is to not get overwhelmed and distracted by the latest trends. Now you have to face it. You will never be an expert at everything , and by constantly changing your investment strategy, you will end up with less money and at some point, you will make a big mistake. I have nothing against experimentation, but I have kept my major investments very consistent over the years and make sure to only invest large amounts in things I completely understand. I won't pretend to have all the answers, but I will be completely transparent about everything I did that helped me have a multi-million dollar net worth. I am a businessman, not a financial advisor. So I do not consider this financial advice. It's just what I did and it worked for me. First of all, you need to create more disposable income.

At the end of the day, you need money to invest and the more money you have, the better especially during your 20s and 30s. Now many people will say: save and save, don't go out with your friends, don't drink that expensive coffee, don't buy that nice car. I completely disagree. Of course, saving is a big part of this but you have to enjoy your life. There's no point in making yourself miserable just to save a few extra bucks. You should focus most of your time on energy to increase your income. You can do this by learning valuable new skills, having a side hustle or building a scalable business. You don't have to settle for the money you get from your nine-to-five job.

You should focus your time on finding ways to supplement or replace it. When I was in my early 20s, I realized that to make my way as a sculptor, earning less than $3 an hour wouldn't give me enough money to invest. It barely paid my bills. I needed to find a way to increase this significantly and that's when my journey into the business world began. Investment and business, really go hand in hand. The sign is very correct. The more you learn, the more you gain. Most importantly, you can invest more. Be really aware of your lifestyle and make sure you keep it in check.

Just because you earn more, doesn't mean you should spend more. Think of someone like saying, I know Ed Sheeran. He has a huge amount of money. Yes, he keeps his lifestyle under control. He still enjoys life's little pleasures. If you're happy with the profit, let's say $40,000 a year, and you manage to grow your income up to a hundred thousand a year, then that means you have an extra $60,000. This should go directly into a high-interest savings account. Then in your investments. You know, you don't need to spend it.

Well, there is one slight exception and that's stage two. Pay off all your high-interest debts. If you have student loans, credit card bills, or even a payday loan, the needs are pulling you. They destroy your credit score which destroys your ability to take advantage of good loans. By paying off these high-interest debts first, you'll actually save more money than you could ever hope to achieve elsewhere. The next stage is the creation of the Freedom Fund.

This is my name for an emergency fund that puts power back in your hands. This Freedom Fund consists of three to five months of living expenses. It protects you if you decide to leave your job, as well as a lot of other situations like recessions, depressions or even pandemics around the world. Well, you've increased your income by learning a valuable skill or perhaps you've invested in your own business.

You have kept your lifestyle under control. You've paid off all your loans and established your Freedom Fund, now it's time to start looking for other options. Let's start with the lowest risk option. Index funds. An index fund is a collection of investments that you can invest your money in and own a percentage of everything. This gives you great diversification and protects you from bad stock choices. For example, let's say you got a thousand dollars and you invested in, I don't, let's say Apple stock. Is there a big company, right? They will be safe. Once your money is in, the company takes a turn for the worse causing the stock price to collapse. The result may be that you lose the majority of your investment. This is where index funds come in. Instead of just owning Apple Stock, you can take $1,000 and invest it in something like the S and P 500, which gives you penny shares in Apple as well as Microsoft, Amazon, Facebook, Visa, Disney and many more.

You're a shareholder in all these big companies. Now if something happens to Apple, it will be balanced out by other investments in your index funds. Now a lot of people will try to convince you that a mutual fund is better. A mutual fund is very similar to an index fund except that it is controlled by a very smart person whose job is to pick the stocks in the fund. The purpose of a mutual fund is to try to beat the market and get better results for the investor. However, in the vast majority of cases, you would be better off putting your money in a simple index fund with less risk and an often brighter return. This is because index funds charge very low fees.

S and P 500 fees, 0.07% per annum. Mutual funds charge high fees, ranging from one to 2% of your account balance annually. If you invest $10,000 in a mutual fund, $200 will go directly into the fund managers' wallet each year. Even if it causes you to lose money through bad stock options. On the flip side, if you had the same amount invested in an S and P 500 index fund, only $7, yes only $7 would leave your account annually. This is because index funds are passively managed , so you don't have to pay a manager who may or may not be doing their job. For long-term investments, I like to use Vanguard index funds, which I love. It's easy to use. I am not affiliated with Vanguard in any way.

I just love the way it works. I also like to mix it up a bit with some international funds and bonds to diversify my portfolio further. As you get older, I recommend you invest in more bonds. And I don't mean the James Bond singer, although he's pretty cool. The investment method I put the majority of my money into is real estate. I'm much more of a real estate guy than a stock guy. I love real investments that I can feel and touch, but I appreciate that it can be difficult to buy real estate with little money, but it's definitely something you should save up for. My first place was a one bedroom apartment and I loved it. it was mine. It cost me about $50,000 , and when I moved out I decided to rent it for $500 a month. I owned this property for about 10 years and when I sold it, I sold it for 150k and after that, I was obsessed with the money we could make from real estate.

Now, this is a good time to determine what type of investor you are. The first type is the capital gains investor. This is the person who likes to buy low, sell high and pocket the difference. These are investors who are interested in buying auction houses or you may have seen outdoor advertising signs that we are buying your house for cash. They like to take advantage of situations where people want quick sales. They have them move into the house, and they do it and flip it for a profit. They have to keep repeating this process. This can work very well but is subject to market fluctuations on an annual basis. The second type is the cash flow investor. That's the kind of investor I like to think I am. I will never buy a property if the rent doesn't cover the mortgage. I like to follow the 1% rule which means if I buy a property for a hundred thousand dollars, then I at least want it to bring me a thousand dollars a month.

Otherwise, to be honest, I don't buy it. Now, let's talk about one of the riskiest options, individual stocks. I get asked about this type of investing every day and I understand why. Individual stocks are a very attractive option for many people. This is because with a small investment you can buy in the market and sell whenever you want. Unlike real estate where you have to find a buyer and do the whole selling process, with the click of a button, you have full access to your funds. When I was in my early 20s, I looked at a few different companies and invested $5,000 in stocks and individual stocks. I'll tell you what, that was a lot of money for me in those days and in just six months though I made a profit of a hundred thousand dollars and with that , I could buy a huge warehouse that really pushed my business forward.

Make sure you understand what you are investing in. I see a lot of people investing in stocks because their friends said they should. If you don't understand it, it's very simple, don't invest. I use two methods to value inventory. The first method is called quantitative analysis. Something that might surprise you is when you Google the stock price which is not the actual real value, it is more appreciative. I like to look at a company's quarterly earnings reports which include things like balance sheets, income and cash flows, to get a real kind of sense of the company's value. You can easily find this information on the Internet. The second method is called qualitative analysis. It's less about the actual numbers and more about the more abstract qualities that make a company great. A good example of this is Tesla. There was something special about Tesla from CEO Elon Musk, to the raving fans who are his customers. I would also consider the future value of a company based on how its technology lives up to the modern world. I believe the transition to electric is inevitable and Tesla is at the forefront of this industry with the largest Supercharger network and product availability.

If you decide to go the individual stock route, make sure you create a diversified portfolio, and don't use just one sector. You have to use different things like healthcare and technology and various different things. You really don't want to leave yourself vulnerable to huge losses. If you're interested in this, I'll put some links below where you can find some really great books. You can do this on some great apps like M1 Finance, Robinhood, and if you're in the UK, you can use Freetrade. Personally, I like to have control over my investments and add value to them. I want to be able to see how my money is being spent and use my experience, and my contacts so I can sway the odds in my favor. This finally brings me to my own business investments. This allows me to blend stock buying with my own trading experience. Think Shark Tank and Dragon's Den, but on a much smaller scale. I regularly receive messages about investment opportunities, and in exchange for my money and knowledge, they give me a stake in their business.

Recently, one of my connections in China contacted me because he wanted to give me input on his new hotel business. This is me and him at the UK's largest independent hotel exhibition. He needed someone he could trust who understood business and also spoke English. He wanted me to help open doors and opportunities for him in the English speaking market. He flew me out to China so we could inspect some of the supply chain and give me a good idea of what we could offer our potential customers. Now the nice thing is that I am expanding my house at the moment. So I was able to get all kinds of building materials and even a nice hot tub. She must be in her nice way. We'll have to make a video of there someday but I'm not sure you'll want to see that one. It may be rated It can sometimes lead to free shares in another company.

You will love this next video. I'll just leave it here but don't click on it now. You guessed it, destroy that like button. I really appreciate it. Finally, consider subscribing to the channel. If you are interested in increasing your income, I hope to see you in the next video. what are you waiting for? Just there. I 'll see you later..

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