7 SMART Investment Choices for Your Paycheck!

Summary

This 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

00:00

💼 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.

05:01

🏆 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.

Keywords

💡Investment

Investment refers to the act of allocating resources, such as money, with the expectation of generating income or profit. In the context of the video, investment is the primary means to grow one's wealth and secure financial independence. The script discusses various investment options, emphasizing the importance of smart investing to combat the effects of inflation and to build multiple income streams.

💡Paycheck

A paycheck is the compensation received by an employee from their employer, typically on a monthly basis. The video is aimed at individuals who receive a regular paycheck and are seeking guidance on how to invest their earnings wisely. The script suggests that instead of letting the paycheck sit idle, it should be allocated towards investments to create future income.

💡Financial Independence

Financial independence is the state of having enough wealth to live without having to work actively for basic necessities. The video encourages viewers to invest in a way that allows them to achieve this state, by not relying solely on business income or traditional employment but by building multiple income streams through smart investments.

💡Inflation

Inflation is the rate at which the general level of prices for goods and services is rising, and subsequently, the purchasing power of currency is falling. The script uses the example of $1 in 1980 being worth only 23 cents today to illustrate the erosive effect of inflation on cash savings and the necessity of investing to preserve and grow wealth.

💡Emergency Fund

An emergency fund is a reserve of cash set aside to cover unexpected expenses or financial hardships, such as job loss or medical emergencies. The video emphasizes the importance of having an emergency fund as a form of 'investment' in financial security, suggesting that it can be kept in a high-yield savings account for easy access when needed.

💡Index Funds

Index funds are a type of mutual fund or exchange-traded fund designed to track the performance of a specific index, such as the S&P 500. The script highlights index funds as a smart investment choice due to their low cost and ease of purchase, allowing investors to gain exposure to a broad market without the need for active management.

💡Commodities

Commodities are basic goods that are interchangeable with other goods of the same type, such as gold, silver, and oil. The video mentions commodities as an asset class that can be invested in, particularly gold and silver, which are considered safe haven assets and can hedge against financial crises and political instability.

💡Financial Education

Financial education refers to the knowledge and understanding of financial matters, including how to manage money, save, invest, and plan for the future. The script stresses the importance of investing in one's own financial education to become more financially literate and confident in making investment decisions.

💡Real Estate

Real estate refers to land and anything permanently attached to it, such as buildings and houses. The video discusses real estate as an asset class that can generate wealth, but also introduces Real Estate Investment Trusts (REITs) as a way for individuals to gain exposure to the real estate market without the need for large upfront capital.

💡High Yield Savings Accounts

High yield savings accounts are a type of savings account that offers a higher interest rate than traditional savings accounts. The script advises viewers to take advantage of these accounts, especially in the current economic climate where interest rates are high, to grow their savings more effectively.

💡Side Hustle

A side hustle is a part-time job or business that one does in addition to their primary job to earn extra money. The video suggests investing time in a side hustle as a way to generate additional income, with the potential for it to grow into a full-time business and contribute to achieving life on one's own terms.

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