7 SMART Investment Choices for Your Paycheck!
Summary
TLDRThis video offers seven smart investment strategies for individuals looking to diversify their income streams and achieve financial independence. It emphasizes the importance of investing to combat inflation and suggests building an emergency fund, investing in index funds, commodities, financial education, real estate through REITs, high-yield savings accounts, and side hustles. The video encourages viewers to take control of their finances and make their money work for them, illustrating the power of compound interest and the potential for significant wealth accumulation through wise investment choices.
Takeaways
- 💼 Investing is crucial for future success, as it helps combat the effects of inflation and preserves purchasing power.
- 🏦 Building an emergency fund is a must, ideally six months to a year's worth of expenses, to prepare for unforeseen circumstances.
- 📈 Index funds are a smart investment choice, offering low-cost diversification that tracks industry benchmarks like the S&P 500.
- 🌟 Commodities such as gold, silver, and a general index can be a valuable addition to a portfolio, acting as a hedge against financial instability.
- 📚 Investing in one's financial education is pivotal, as it empowers individuals to make informed decisions about managing money.
- 🏠 Real estate can be a challenging asset class to enter, but Real Estate Investment Trusts (REITs) offer an accessible way to gain exposure.
- 💰 High-yielding savings accounts are essential for maximizing the interest on savings, especially in times of historically high interest rates.
- 🔄 The importance of investing in a side hustle is highlighted, as it can provide significant ROI in terms of both money and time.
- 🤔 The script emphasizes the need for financial independence and not relying solely on a business or traditional pension schemes.
- 📈 The historical average return of the S&P 500 Index is used as an example to illustrate the power of investing versus saving in a bank.
- 🚀 Starting with the basics of investing and gradually building up can lead to achieving life on one's own terms, as exemplified by the speaker's personal experience.
Q & A
What is the main purpose of the video?
-The main purpose of the video is to provide guidance on smart investment choices for individuals who receive a monthly paycheck and are looking to build multiple income streams.
Why is it important to invest according to the video?
-Investing is crucial for future success as it helps to overcome the power of inflation, which can significantly reduce the purchasing power of cash over time.
What is the first investment recommendation made in the video?
-The first recommendation is to invest in an emergency fund, which is important for financial security in case of unexpected life events.
How much time period is suggested for an emergency fund?
-Having six months worth of expenses is prudent, but having up to 12 months would be even better.
What are index funds and why are they recommended for investment?
-Index funds aim to mirror industry benchmarks like the S&P 500 and are typically a low-cost product, making them an easy and efficient way to invest.
What platform does the speaker personally use for investments?
-The speaker personally uses HL for all of their investments, recommending it for its service and platform.
Why are commodities like gold and silver considered smart investments?
-Commodities like gold and silver are seen as safe haven assets and can act as a hedge against financial crises and political instability.
What is the speaker's view on financial education?
-The speaker believes that financial education is crucial and is disappointed that it is not taught in schools globally.
What is the role of REITs in real estate investment according to the video?
-REITs allow investors to gain exposure to real estate similar to buying shares on the stock market, benefiting from share price increases and dividends.
What is the importance of high-yielding savings accounts as mentioned in the video?
-High-yielding savings accounts are important as they offer better interest rates, allowing your money to grow more effectively than in accounts with poor interest rates.
What is the speaker's advice on side hustles and why are they beneficial?
-The speaker advises starting a service-based side hustle because they can be initiated with little startup cost and can provide a significant return on investment and time.
How does the speaker illustrate the difference between saving and investing?
-The speaker uses the example of saving $200 per month in a bank versus investing it at a higher interest rate, showing the monumental difference in growth over time.
What is the final message the speaker hopes to convey to the viewers?
-The speaker hopes viewers understand the importance of investing their cash wisely, making it work for them, and achieving financial independence and life on their own terms.
Outlines
💼 Smart Investment Choices for Financial Independence
This paragraph introduces the video's focus on guiding viewers to make smart investment choices with their monthly paychecks. It emphasizes the importance of financial independence and not relying solely on traditional pension schemes. The speaker highlights the need to diversify investments to combat inflation and suggests starting with an emergency fund, which is crucial for unforeseen circumstances. The paragraph also mentions the benefits of investing in index funds due to their low cost and ease of access, and it recommends a particular investment platform (HL) for a variety of investment options, including index trackers, bonds, crypto, and stocks.
🏆 Diversifying Investments: From Commodities to Side Hustles
The second paragraph continues the discussion on investment strategies, starting with commodities like gold and silver, which are considered safe haven assets and have shown significant growth over the past 20 years. It also stresses the importance of financial education, suggesting that viewers should invest time in learning about managing money through mentorship, books, and podcasts. Real estate is presented as a potentially challenging but rewarding asset class, with Real Estate Investment Trusts (REITs) offered as an accessible alternative for those looking to gain exposure without the need for substantial upfront capital. High-yield savings accounts are recommended for those seeking better interest rates than traditional savings, and the paragraph concludes with an encouragement to invest in a side hustle, which can offer significant returns in both money and time investment.
Mindmap
Keywords
💡Investment
💡Paycheck
💡Financial Independence
💡Inflation
💡Emergency Fund
💡Index Funds
💡Commodities
💡Financial Education
💡Real Estate
💡High Yield Savings Accounts
💡Side Hustle
Highlights
The video discusses seven smart investment choices for building multiple income streams and achieving financial independence.
Investing is crucial to combat the effects of inflation and preserve purchasing power over time.
The importance of having an emergency fund, ideally six months to a year's worth of expenses, is emphasized for financial security.
High-yielding savings accounts are recommended for storing emergency funds and increasing savings.
Index funds are presented as a low-cost, easy-to-manage investment option that mirrors industry benchmarks.
The video recommends HL as a platform for various investment types, including index trackers, bonds, and stocks.
Commodities like gold, silver, and a general index tracking various commodities are suggested as safe haven assets.
Investing in one's own financial education is highlighted as a key component of smart money management.
The lack of financial education in schools is pointed out as a missed opportunity for knowledge about money management.
Real estate is discussed as a valuable asset class, with REITs as an accessible way to gain exposure without large upfront costs.
The benefits of high-yielding savings accounts, especially in a period of high interest rates, are underscored.
Starting a side hustle is presented as a means to generate additional income and potentially transition to full-time entrepreneurship.
Service-based side hustles are recommended for their low startup costs and potential for high returns.
The video encourages viewers to consider the long-term benefits of investing a small amount monthly at a higher interest rate.
The potential transformation of a side hustle into a full-time business is highlighted as a path to achieving life on one's own terms.
The presenter shares personal experiences as proof of the effectiveness of the discussed investment strategies.
Transcripts
in today's video we'll be exploring
seven smart investment choices for your
money when your paycheck H to your bank
this video is aimed at all of you who
receive a paycheck each month and need
some guidance on where to invest your
own money and ultimately all of you who
would like the autonomy to invest your
own money as well this is not aimed at
you business owners who want to reinvest
all of your Capital back into your
business but for those of you who would
like to start building multiple income
streams today A wise man once told me
you must be financially independent from
your business and not have all your eggs
in one basket this also applies to all
of you who are watching who are
currently employed and need to handle
all of your Investments to build your
future income streams now you can go to
traditional route and allocate a portion
of your money to a a generic pension
scheme but this video is for you if you
feel you know you need to take the Reign
a little bit more of your own finances
just before we get into it I want to
talk around the importance of investing
investing is absolutely crucial to your
future success if you left $1 sitting in
the bank gaining no interest back in
1980 in real terms this would be now
worth around 23 cents a day meaning you
will have lost 75% of your purchasing
power in 45 years this shows you the
power of inflation and what it can do to
your cash inflation is our enemy but we
can overcome this by investing smartly
and wisely into multiple asset classes
whil I don't offer Financial advice on
this channel the main aim is to give you
the information to increase your savings
and net worth so you can either retire
earlier or take advantage of compound
interest to let your saving snowball
into a mammoth pot of money okay so
firstly you need to invest in emergency
funds this might sound straightforward
but having an emergency fund is super
important if life throws you a curveball
which you can you need to be ready
having six months worth of expenses is
Prov prudent but having up to 12 months
would be even better whilst this is not
an investment as such this will be one
of the best investments you can make if
life Turns Upside down for one reason or
another you can even keep this cash in a
high yielding savings account and as you
can see on screen I've made a list of
the best high yielding savings accounts
for you to invest in today another smart
investment Choice are index funds quite
simply index funds aim to mirror the
industry benchmarks such as the S&P 500
and the footy 100 they are typically a
lowcost product which you can buy with
ease on your investment platform now
there are many ways you can buy index
funds and typically fees can be lower
than 0.1% per year which is actually a
lot less than acly managed funds which
require fund managers to physically
manage the fund on a day-to-day basis I
personally use HL for all of my
investments in my portfolio whether you
want to receive financial advice from
one of their in-house Specialist or if
you a dii investor like me you can
invest in lots of different funds such
as index trackers bonds crypto and
stocks I've been a loyal customer for
years now and would highly recommend
their service and platform and I've also
linked this in the show notes for you
below up next are Commodities please
don't switch off at this point and I'm
not talking about the likes of coffee
and sugar as in my opinion they are only
for drinking the Commodities I'm
invested in today are gold silver and a
general index that tracks all
Commodities including the above such as
oil copper corn to name a few if we take
the price of gold for example as of
recording gold has performed extremely
well and if we look over a 20-year
period gold has increased by over a th%
assets such as gold and silver are also
seen as a safe haven asset and are seen
as a hedge against financial crisis and
political instability as always do your
own research or speak with a financial
advisor on what is right for you whether
that would be gold silver crude oil but
Commodities are definitely an asset
class to take a look at okay so number
four is to invest in your own Financial
education and well done to you because
you are doing this right now it's a huge
disappointment of mine that Financial
education is not being taught in schools
across the globe so whilst money can be
viewed as a taboo subject it's so
important for not just us but our future
generations to have as much knowledge as
they can about managing money everything
that I've learned has come off the back
of either shadowing mentors reading
books and listening to podcasts it's
quite simple for do the same and the
more information you take in the more
Finance listate you'll become and the
more confident you'll become about
talking about finances with either your
peers or your family when I said you
need to invest in your own Financial
education this does not necessarily mean
spending thousands on how to invest in
the stock market but more so investing
in your time okay so on to number five
which is real estate now real estate is
an interesting asset class as some of
the wealthiest people in the world are
landowners however real estate as an
asset class can be a little bit harder
to invest in others and I'll tell you
why if we assume you saving $500 per
month and this is to go toward your
investment and with the average deposit
on a single rental unit property being
let's say $50,000 it can prove quite
hard for you to get into real estate in
a townly fashion now you could save this
money in a highin savings account whilst
you wait but what about if you want to
gain exposure today welcome to the party
Real Estate Investment Trust also known
as REITs from an Investor's perspective
this worked the same as buying shares on
the stock market and you can benefit
from share price and reats increased in
value and also the dividend you receive
from your share as well so let's talk
about high yielding savings accounts now
you might be thinking this might sound
straightforward Alan this is obvious
what are you talking about however what
I found when I went through this
exercise myself is that I had multiple
savings accounts with really poor
interest rates with interest rates
sitting at their highest level since
2008 you need to be taking advantage of
high yield savings accounts today you
can even have your emergency fund
sitting in one of these accounts as long
as it's an easy access account and with
a reputable Bank you really don't want
to be waiting for your cash if you need
this in an emergency last but certainly
not least is to invest in your own side
hustle and why this isn't strictly
investing your paycheck into an asset
class like an index fund this could
certainly give you the biggest Roi in
terms of your money and your time now
this might not be for all of you I I
understand that but I assume if you like
comment and subscribe to this Channel
having a side hustle or starting your
own business is something that you're
either doing or seriously considering
again like investing in your own
Financial education side hustles don't
necessarily need lots of money but just
need time there are plenty of side
hustles you can start today but my main
advice would be to start a service-based
side hustle and you might be asking why
you can start a service based side
hustle with very little startup cost and
to give you some ideas these things can
include stuff like you know copywriting
becoming a virtual assistant Drop
Shipping Amazon KDP and many more again
this doesn't mean that your sole Focus
here has to be ditching your current
employment but if you're looking to earn
an extra $500 to $3,000 per month from
an Roi and time perspective there is not
much better than starting your own side
hustle I'm really interested in all side
hustles so please comment below and let
me know what you're currently working on
today okay everyone I'm about to start
wrapping things up here but I'm hoping
what you can take from this video is
that it's so important to invest our
cash having cash under a mattress for a
rainy day to having cash sat in your
bank is no good to anyone in real terms
cash in the bank is reducing in value on
a daily basis so we need to make sure
our money is working for us to give you
an example if you save $200 per month in
the bank at let's say a 1% interest rate
you'd have just shy of 120,000 invested
but if we invested $200 per month at
interest rate of let's say 10% which by
the way is the historical average of the
S&P 500 Index in the same period you
would have 1.2 million invested that is
a Monumental difference as you can see
and if this isn't sexy enough for you
imagine being at the point where you've
started investing this $200 per month
and you've now started your own side hle
which pays you let's say a four to five
figure income per month this side hle
now turns into your business full-time
and my friends what you've now just
achieve is life on your own terms by
just starting the basics and trust me
I'm living proof of this and all of what
I've discussed with you today I've put
into action as always if you've enjoyed
my video please like And subscribe and
let me know in the comments below what
steps you are taking today on your own
investing Journey Benny
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