#1 Investing Tip For People Who Don't Invest In Stocks
Published on: December 2 2022 by Tatiana James
#1 Investing Tip For People Who Don't Invest In Stocks
Table of Contents
#1 Investing Tip For People Who Don't Invest In Stocks
| startTime | durationTime | text |
| 00:00:00 | 00:00:03 | hey everyone it's tatiana and today i |
| 00:00:02 | 00:00:06 | want to chat with you |
| 00:00:03 | 00:00:08 | about investing so maybe you have a |
| 00:00:06 | 00:00:09 | little bit of money that you've saved up |
| 00:00:08 | 00:00:12 | and you would like to invest it |
| 00:00:09 | 00:00:14 | but you haven't taken any action because |
| 00:00:12 | 00:00:16 | you don't feel confident in your ability |
| 00:00:14 | 00:00:18 | to pick individual stoks |
| 00:00:16 | 00:00:21 | or you're totally ignorant to the world |
| 00:00:18 | 00:00:23 | of investing and maybe frankly it's just |
| 00:00:21 | 00:00:25 | better safer to leave that money in a |
| 00:00:23 | 00:00:28 | savings account so at least you don't |
| 00:00:25 | 00:00:30 | lose it if that sounds like you then |
| 00:00:28 | 00:00:31 | don't worry that's a reasonable way to |
| 00:00:30 | 00:00:33 | feel |
| 00:00:31 | 00:00:34 | and i can relate to that because we're |
| 00:00:33 | 00:00:36 | not all |
| 00:00:34 | 00:00:38 | reading the investing books and spending |
| 00:00:36 | 00:00:40 | half our day learning about investing we |
| 00:00:38 | 00:00:43 | got full-time jobs families |
| 00:00:40 | 00:00:44 | other things on our mind and you might |
| 00:00:43 | 00:00:46 | feel like well |
| 00:00:44 | 00:00:47 | i don't know enough about investing so i |
| 00:00:46 | 00:00:50 | can't invest my money and that's |
| 00:00:47 | 00:00:51 | precisely why i'm making this video |
| 00:00:50 | 00:00:52 | today because i want you to know that |
| 00:00:51 | 00:00:54 | you don't have to know |
| 00:00:52 | 00:00:56 | everything there is to know about |
| 00:00:54 | 00:00:57 | investing in order to get started and to |
| 00:00:56 | 00:01:00 | start |
| 00:00:57 | 00:01:01 | benefiting from your investments and the |
| 00:01:00 | 00:01:04 | sooner that you can get started |
| 00:01:01 | 00:01:06 | always the better so if you're making a |
| 00:01:04 | 00:01:08 | five or six figure salary |
| 00:01:06 | 00:01:09 | that's wonderful and you can live a very |
| 00:01:08 | 00:01:11 | comfortable life |
| 00:01:09 | 00:01:12 | off of that but chances are you're not |
| 00:01:11 | 00:01:15 | going to get |
| 00:01:12 | 00:01:17 | wealthy from your salary but if you can |
| 00:01:15 | 00:01:19 | take a portion of your earnings every |
| 00:01:17 | 00:01:21 | month and invest those earnings |
| 00:01:19 | 00:01:23 | then your investments are what can |
| 00:01:21 | 00:01:24 | actually make you wealthy your |
| 00:01:23 | 00:01:27 | investments are what can |
| 00:01:24 | 00:01:29 | help you become a millionaire and so i |
| 00:01:27 | 00:01:31 | want you guys to understand this because |
| 00:01:29 | 00:01:33 | again you don't have to know everything |
| 00:01:31 | 00:01:34 | there is to know and oftentimes people |
| 00:01:33 | 00:01:36 | do have some money put aside |
| 00:01:34 | 00:01:37 | they just don't know what to do with it |
| 00:01:36 | 00:01:39 | and don't feel confident in their |
| 00:01:37 | 00:01:40 | abilities |
| 00:01:39 | 00:01:43 | so i want to share with you today |
| 00:01:40 | 00:01:44 | something called index funds |
| 00:01:43 | 00:01:46 | so index funds if there's anything you |
| 00:01:44 | 00:01:49 | take away from this video is just |
| 00:01:46 | 00:01:51 | understanding this word and you can |
| 00:01:49 | 00:01:52 | google it later and can learn more about |
| 00:01:51 | 00:01:54 | index funds |
| 00:01:52 | 00:01:56 | i will say that i'm not a financial |
| 00:01:54 | 00:01:58 | advisor i'm just an entrepreneur who |
| 00:01:56 | 00:01:59 | likes to make my money grow |
| 00:01:58 | 00:02:01 | and i'm just sharing with you some |
| 00:01:59 | 00:02:02 | things that i've learned and you can do |
| 00:02:01 | 00:02:04 | with it |
| 00:02:02 | 00:02:06 | what you wish so an index fund there are |
| 00:02:04 | 00:02:09 | many different kinds of index funds |
| 00:02:06 | 00:02:10 | one of the most popular is called the s |
| 00:02:09 | 00:02:13 | and p |
| 00:02:10 | 00:02:17 | 500 and so it's a fund of the top |
| 00:02:13 | 00:02:18 | 500 largest companies in the united |
| 00:02:17 | 00:02:21 | states |
| 00:02:18 | 00:02:23 | so this includes amazon apple google |
| 00:02:21 | 00:02:25 | all of these companies you name it |
| 00:02:23 | 00:02:27 | they're all in this fund the top |
| 00:02:25 | 00:02:30 | 500 companies and so what are the |
| 00:02:27 | 00:02:33 | benefits of investing in an index fund |
| 00:02:30 | 00:02:33 | well you don't have to pick individual |
| 00:02:33 | 00:02:35 | stoks |
| 00:02:33 | 00:02:37 | and this is where you know it can become |
| 00:02:35 | 00:02:38 | complicating if you don't know what |
| 00:02:37 | 00:02:41 | you're doing how do you know |
| 00:02:38 | 00:02:42 | whether or not you should invest in |
| 00:02:41 | 00:02:44 | company a |
| 00:02:42 | 00:02:45 | or company b are you confident in your |
| 00:02:44 | 00:02:47 | ability to read |
| 00:02:45 | 00:02:49 | the spreadsheets are you confident in |
| 00:02:47 | 00:02:50 | your ability to determine whether or not |
| 00:02:49 | 00:02:53 | this is |
| 00:02:50 | 00:02:54 | a worthy company of your investment if |
| 00:02:53 | 00:02:55 | you can make a good return on your |
| 00:02:54 | 00:02:58 | investment |
| 00:02:55 | 00:03:00 | yeah maybe not right but that's okay you |
| 00:02:58 | 00:03:02 | don't have to do that so in lia |
| 00:03:00 | 00:03:03 | instead of picking individual stoks you |
| 00:03:02 | 00:03:06 | can invest |
| 00:03:03 | 00:03:10 | in a fund such as the snp |
| 00:03:06 | 00:03:12 | 500 so you invest in one fund |
| 00:03:10 | 00:03:15 | and through the one fund you'll be |
| 00:03:12 | 00:03:18 | investing in all these 500 companies |
| 00:03:15 | 00:03:18 | simultaneously so you'll own a portion |
| 00:03:18 | 00:03:21 | of |
| 00:03:18 | 00:03:24 | amazon of apple of google |
| 00:03:21 | 00:03:25 | of tesla of all of these major companies |
| 00:03:24 | 00:03:27 | and |
| 00:03:25 | 00:03:28 | the benefit of this is that if one |
| 00:03:27 | 00:03:31 | company |
| 00:03:28 | 00:03:33 | or a few companies are underperforming |
| 00:03:31 | 00:03:35 | or they're not doing well then it |
| 00:03:33 | 00:03:37 | balances itself out with the other |
| 00:03:35 | 00:03:40 | companies that are doing really well |
| 00:03:37 | 00:03:42 | because there are so many companies so |
| 00:03:40 | 00:03:43 | as you know the term you don't have all |
| 00:03:42 | 00:03:45 | your eggs in one basket |
| 00:03:43 | 00:03:48 | if you have ten thousand dollars and you |
| 00:03:45 | 00:03:51 | put ten thousand dollars into say |
| 00:03:48 | 00:03:52 | um let's say google okay well what if |
| 00:03:51 | 00:03:54 | something happens to google and you know |
| 00:03:52 | 00:03:56 | google goes bankrupt |
| 00:03:54 | 00:03:57 | very unlikely but let's just use an |
| 00:03:56 | 00:03:58 | example well you've lost your ten |
| 00:03:57 | 00:04:02 | thousand dollars |
| 00:03:58 | 00:04:06 | but if you invested into the s p 500 |
| 00:04:02 | 00:04:07 | google is just one of the 500 companies |
| 00:04:06 | 00:04:10 | in that fund |
| 00:04:07 | 00:04:12 | so your 10 000 would be invested into |
| 00:04:10 | 00:04:13 | all 500 companies so if google went |
| 00:04:12 | 00:04:16 | bankrupt |
| 00:04:13 | 00:04:17 | that's okay it makes up for it with the |
| 00:04:16 | 00:04:19 | other companies |
| 00:04:17 | 00:04:20 | and any company in the s p 500 that's |
| 00:04:19 | 00:04:23 | underperforming |
| 00:04:20 | 00:04:25 | will get booted out so you're guaranteed |
| 00:04:23 | 00:04:27 | to be investing in the top |
| 00:04:25 | 00:04:28 | performing the largest companies in the |
| 00:04:27 | 00:04:31 | us and the u.s |
| 00:04:28 | 00:04:33 | is the largest marketplace and where |
| 00:04:31 | 00:04:35 | most people invest a lot of their money |
| 00:04:33 | 00:04:37 | you can invest internationally too there |
| 00:04:35 | 00:04:39 | are many types of index funds |
| 00:04:37 | 00:04:40 | but i think most people do choose to |
| 00:04:39 | 00:04:42 | invest in the us |
| 00:04:40 | 00:04:45 | with so many great companies there so |
| 00:04:42 | 00:04:47 | why invest into the s p 500 well again |
| 00:04:45 | 00:04:50 | number one is that you don't have to |
| 00:04:47 | 00:04:51 | pick individual stoks so you don't have |
| 00:04:50 | 00:04:54 | to do the work here |
| 00:04:51 | 00:04:56 | you can just invest into one stok that |
| 00:04:54 | 00:04:58 | is composed of 500 of the top companies |
| 00:04:56 | 00:05:03 | so the average return for the s p |
| 00:04:58 | 00:05:06 | 500 over the last 10 years has been 13.5 |
| 00:05:03 | 00:05:08 | annually and no one has ever lost money |
| 00:05:06 | 00:05:09 | on the s p 500 if they bought and held |
| 00:05:08 | 00:05:12 | it |
| 00:05:09 | 00:05:14 | for 20 years so the key is long term |
| 00:05:12 | 00:05:16 | so that's another reason why you would |
| 00:05:14 | 00:05:16 | be interested in investing in the s p |
| 00:05:16 | 00:05:19 | 500 |
| 00:05:16 | 00:05:20 | is because it's very passive you invest |
| 00:05:19 | 00:05:22 | in it and you just keep your money there |
| 00:05:20 | 00:05:22 | you're not day trading you're not |
| 00:05:22 | 00:05:24 | trading |
| 00:05:22 | 00:05:26 | you just leave your money in the fund |
| 00:05:24 | 00:05:28 | and it continues to grow and over the |
| 00:05:26 | 00:05:30 | last 20 years it has continued to grow |
| 00:05:28 | 00:05:32 | significantly well maybe you're |
| 00:05:30 | 00:05:34 | investing your money with your bank |
| 00:05:32 | 00:05:35 | well take note of this the average |
| 00:05:34 | 00:05:38 | actively managed fund |
| 00:05:35 | 00:05:39 | returns two percent less per year than |
| 00:05:38 | 00:05:41 | the market |
| 00:05:39 | 00:05:43 | so that means that most professionals on |
| 00:05:41 | 00:05:44 | average are doing worse than the index |
| 00:05:43 | 00:05:46 | fund |
| 00:05:44 | 00:05:48 | and they're charging you fees so by |
| 00:05:46 | 00:05:49 | investing in the index fund it's a |
| 00:05:48 | 00:05:51 | passive investment there's no |
| 00:05:49 | 00:05:52 | active management you're not paying all |
| 00:05:51 | 00:05:55 | these fees |
| 00:05:52 | 00:05:56 | and it's making you a higher return on |
| 00:05:55 | 00:05:58 | average |
| 00:05:56 | 00:05:59 | than most actively managed funds you |
| 00:05:58 | 00:06:01 | don't have to |
| 00:05:59 | 00:06:02 | entrust your money with one individual |
| 00:06:01 | 00:06:04 | person trusting that they can |
| 00:06:02 | 00:06:06 | individually pick these stoks for you |
| 00:06:04 | 00:06:07 | you're just trusting the market now |
| 00:06:06 | 00:06:10 | don't get me wrong |
| 00:06:07 | 00:06:12 | i invest in individual stoks as well |
| 00:06:10 | 00:06:14 | most of my returns have come from my |
| 00:06:12 | 00:06:17 | individual stoks |
| 00:06:14 | 00:06:19 | my shopify my amazon my tesla |
| 00:06:17 | 00:06:21 | these stoks have performed so well in |
| 00:06:19 | 00:06:23 | my portfolio |
| 00:06:21 | 00:06:24 | however they're far riskier than |
| 00:06:23 | 00:06:28 | investing in |
| 00:06:24 | 00:06:30 | an index fund such as the s p 500 |
| 00:06:28 | 00:06:32 | so if you're someone who doesn't trust |
| 00:06:30 | 00:06:34 | your ability to make a decision |
| 00:06:32 | 00:06:36 | to choose individual stoks then this |
| 00:06:34 | 00:06:38 | could be a great option for you |
| 00:06:36 | 00:06:39 | maybe you won't have as high return as |
| 00:06:38 | 00:06:42 | you would by |
| 00:06:39 | 00:06:42 | investing in a shopify but it's more |
| 00:06:42 | 00:06:45 | secure |
| 00:06:42 | 00:06:45 | there's less risk but you could also do |
| 00:06:45 | 00:06:48 | both |
| 00:06:45 | 00:06:50 | now the younger you start investing the |
| 00:06:48 | 00:06:52 | better because there's something called |
| 00:06:50 | 00:06:54 | compounding and compound interest it's a |
| 00:06:52 | 00:06:56 | snowball effect |
| 00:06:54 | 00:06:57 | so it's always the younger that you can |
| 00:06:56 | 00:06:59 | start the better |
| 00:06:57 | 00:07:00 | and i want to give you an idea of how |
| 00:06:59 | 00:07:02 | compounding works |
| 00:07:00 | 00:07:05 | so you can google this you can just look |
| 00:07:02 | 00:07:07 | at a compound interest calculator |
| 00:07:05 | 00:07:08 | and to give you an idea if you were to |
| 00:07:07 | 00:07:10 | invest two hundred and fifty dollars a |
| 00:07:08 | 00:07:12 | month with an eight percent |
| 00:07:10 | 00:07:13 | annual return then in ten years you |
| 00:07:12 | 00:07:15 | would have forty four |
| 00:07:13 | 00:07:17 | thousand dollars with your initial |
| 00:07:15 | 00:07:18 | investment of |
| 00:07:17 | 00:07:20 | thirty thousand dollars over the last |
| 00:07:18 | 00:07:21 | ten years which is twenty |
| 00:07:20 | 00:07:23 | two hundred fifty dollars a month for |
| 00:07:21 | 00:07:24 | ten years would be thirty thousand |
| 00:07:23 | 00:07:25 | dollars |
| 00:07:24 | 00:07:28 | so that thirty thousand dollars would |
| 00:07:25 | 00:07:32 | grow to forty four thousand dollars |
| 00:07:28 | 00:07:34 | now in thirty years you'd have 342 000 |
| 00:07:32 | 00:07:35 | with investment of your own money of |
| 00:07:34 | 00:07:37 | only 90 000 |
| 00:07:35 | 00:07:39 | and in 50 years if you left that money |
| 00:07:37 | 00:07:42 | there for 50 years |
| 00:07:39 | 00:07:43 | you would have invested 150 000 of your |
| 00:07:42 | 00:07:47 | own money |
| 00:07:43 | 00:07:50 | at 250 a month and it would make you |
| 00:07:47 | 00:07:52 | 1.7 million dollars |
| 00:07:50 | 00:07:53 | so that is the power of compounding and |
| 00:07:52 | 00:07:55 | that's why i say |
| 00:07:53 | 00:07:56 | you don't have to be wealthy to get |
| 00:07:55 | 00:07:58 | started you don't have to be rich to |
| 00:07:56 | 00:08:00 | invest just |
| 00:07:58 | 00:08:01 | invest a small portion whatever you can |
| 00:08:00 | 00:08:04 | if 250 is too much |
| 00:08:01 | 00:08:05 | then start lower if 250 if you have more |
| 00:08:04 | 00:08:08 | wiggle room you can invest |
| 00:08:05 | 00:08:09 | 300 400 then do it because it's gonna |
| 00:08:08 | 00:08:12 | grow |
| 00:08:09 | 00:08:13 | and that is what's going to help you to |
| 00:08:12 | 00:08:15 | become financially free |
| 00:08:13 | 00:08:17 | and to become a millionaire and the |
| 00:08:15 | 00:08:20 | longer you can keep your money |
| 00:08:17 | 00:08:21 | compounding and invested the better |
| 00:08:20 | 00:08:23 | because it continues to grow |
| 00:08:21 | 00:08:25 | but at any point in time you can take |
| 00:08:23 | 00:08:26 | that money out if you need it so i just |
| 00:08:25 | 00:08:28 | want to share |
| 00:08:26 | 00:08:29 | this with you guys because ultimately |
| 00:08:28 | 00:08:32 | like i want you guys to |
| 00:08:29 | 00:08:33 | benefit uh from investing uh but it can |
| 00:08:32 | 00:08:35 | hold a lot of people back |
| 00:08:33 | 00:08:37 | feeling intimidated by the investing |
| 00:08:35 | 00:08:40 | world and i agree there is so much to |
| 00:08:37 | 00:08:42 | learn and honestly the more i learn |
| 00:08:40 | 00:08:43 | the more i feel like oh my gosh there's |
| 00:08:42 | 00:08:47 | so much more to learn |
| 00:08:43 | 00:08:48 | and it can feel like uh this this black |
| 00:08:47 | 00:08:50 | hole where it's just |
| 00:08:48 | 00:08:52 | there's never you never learned enough |
| 00:08:50 | 00:08:54 | and that's a good thing i think that's a |
| 00:08:52 | 00:08:56 | good thing there's always room to grow |
| 00:08:54 | 00:08:57 | but you don't have to know everything to |
| 00:08:56 | 00:09:00 | get started |
| 00:08:57 | 00:09:02 | so the s p 500 is a wonderful index fund |
| 00:09:00 | 00:09:04 | there are many different types of index |
| 00:09:02 | 00:09:06 | funds that you can explore |
| 00:09:04 | 00:09:07 | there are also etfs exchange traded |
| 00:09:06 | 00:09:09 | funds |
| 00:09:07 | 00:09:11 | which are similar to index funds but |
| 00:09:09 | 00:09:12 | different i'll let you do your research |
| 00:09:11 | 00:09:14 | on that |
| 00:09:12 | 00:09:16 | but this would be a great way i think to |
| 00:09:14 | 00:09:18 | get started with investing |
| 00:09:16 | 00:09:19 | and ultimately guys you don't want to |
| 00:09:18 | 00:09:22 | you know any money that you do |
| 00:09:19 | 00:09:24 | invest into the stok market you have to |
| 00:09:22 | 00:09:24 | be you have to be comfortable with |
| 00:09:24 | 00:09:27 | losing |
| 00:09:24 | 00:09:29 | because investing is is a risky game you |
| 00:09:27 | 00:09:32 | know it's there's no 100 |
| 00:09:29 | 00:09:33 | guarantees in the world of investing you |
| 00:09:32 | 00:09:35 | can mitigate your risk by doing |
| 00:09:33 | 00:09:37 | investments such as these |
| 00:09:35 | 00:09:39 | investing in bonds etc there are |
| 00:09:37 | 00:09:40 | investments that are less risky there |
| 00:09:39 | 00:09:43 | are investments that are |
| 00:09:40 | 00:09:45 | more risky so i would make sure first |
| 00:09:43 | 00:09:45 | that you have enough money in your |
| 00:09:45 | 00:09:48 | savings |
| 00:09:45 | 00:09:51 | for emergencies your rainy day savings |
| 00:09:48 | 00:09:52 | and then any additional money that you |
| 00:09:51 | 00:09:54 | want to invest so this would be in |
| 00:09:52 | 00:09:55 | addition to what you have in your |
| 00:09:54 | 00:09:56 | savings |
| 00:09:55 | 00:09:58 | don't just take everything that you have |
| 00:09:56 | 00:10:00 | in your savings for emergencies and |
| 00:09:58 | 00:10:02 | invest it into the stok market |
| 00:10:00 | 00:10:04 | i don't think that's the best thing to |
| 00:10:02 | 00:10:06 | do but again i am not |
| 00:10:04 | 00:10:07 | a financial advisor and i'm not giving |
| 00:10:06 | 00:10:09 | you guys advice |
| 00:10:07 | 00:10:10 | i'm just an entrepreneur wanting my |
| 00:10:09 | 00:10:12 | money to grow and make more money |
| 00:10:10 | 00:10:14 | and i want to share that with you guys |
| 00:10:12 | 00:10:15 | so i hope you enjoyed this video |
| 00:10:14 | 00:10:17 | check out other people's videos on |
| 00:10:15 | 00:10:18 | youtube they tok way better about |
| 00:10:17 | 00:10:20 | investing stefan |
| 00:10:18 | 00:10:22 | my partner he has so many amazing videos |
| 00:10:20 | 00:10:23 | on investing i recommend you watch them |
| 00:10:22 | 00:10:24 | i'll link them in the description box |
| 00:10:23 | 00:10:26 | below |
| 00:10:24 | 00:10:28 | he's got a video about index funds where |
| 00:10:26 | 00:10:30 | he goes in more depth about what they |
| 00:10:28 | 00:10:31 | are and how to get started |
| 00:10:30 | 00:10:33 | and i'll recommend that you watch that |
| 00:10:31 | 00:10:34 | next if you'd like to dive deeper on |
| 00:10:33 | 00:10:36 | this topic |
| 00:10:34 | 00:10:39 | so hope you enjoyed it and i'll see you |
| 00:10:36 | 00:10:39 | next time |
