Because there are so many different investing options you can take, these are the most important points that can apply to just about anything you invest in. Full outline in the description. Enjoy! Add me on Snapchat/Instagram: GPStephan
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The first is to start as early as you can.
As the saying goes, the best time to plant a tree was 20 years ago. The second best time is right now. This is one of the biggest advantages you have of being young is that you have the power of time, and the longer you invest - the more money you make. Consider this…if you invest $1000 per year at an 8% return beginning at the age of 16, you’ll have $616,000 by the time you’re 65. If you invest the same $1000 per year at an 8% interest but you started at 30 years old instead of 16…you’ll only have $200,800. That means that each year between the ages of 16 and 30 is worth over $29,000…for every $1000 you invested early on.
The second is to re-invest often.
This plays off the first point in terms of compounded interest. In fact, this point is so important that Albert Einstein called it “the 8th wonder of the world.” The whole premise here is that your money makes you more money, that then makes you more money.
The third is to invest long term.
This is my biggest philosophy when it comes to investing. Some people are traders - where their goal is to get in and out and make a profit. I’m not one of them, and I prefer to buy it once and forget about it. It’s statistically proven that overall, market timing doesn’t work and time in the market makes the biggest difference. And if you do that, this is crucial - having a short term outlook doesn’t really provide enough time to recover from a market downturn or correction. Overall, things will never move in a straight line up - it’s often up and down along the way, but the overall trend is increasing. This is why it’s important to have a long term outlook. For myself, I don’t care what prices are like 5 years from now - or 15 years from now. I just care that they’ll be much, much higher 30-40 years from now. If I’m not planning to touch that money or do anything with it, I pretend like it doesn’t exist and I’m packing it away for the future.
The fourth is to diversify.
Don’t have all of your eggs in one basket. This is less about maximizing your returns, and more about loss avoidance. In the small chance things don’t work out, you won’t be out of luck. Sure, you COULD possibly hit it big with one amazing investment, or you could risk it all if it fails. When it comes to investing, it’s important to diversify your holdings between investments and cash.
The fifth is to do your research.
Honestly the worst investment you do is the one you don’t understand. That’s how you end up losing money. It’s so important that you understand what you’re investing in, why you’ve invested in it, and have a strategy in place. Never invest blindly and do not take advice blindly or take random advice from people on the internet.
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Wow! These are all great ideas! I am thinking of investing something that I really love. Something that I feel fulfilled. The first investment I made is for my Affiliate Marketing business and since now it is doing great, I am definitely gonna invest in something that will also help my business at the same time. I will keep all of these in mind, Graham. Thank you!
Graham I’m thinking to invest in real estate in this suburb that is underrated but it’s close to one that is growing and another one that is high in the 1million. This suburb has a hospital getting built in the process and a huge shopping center and hotels. Do you think these things getting built will make the suburb grow substantially in the coming future?
How do you know when home prices will be raising? Is it only because the rest of the property around may be going up or something else? How do you know when its worth will go up and not crash/decrease?
It's more diversified than a single stock, but it doesn't count international companies, emerging markets, bonds, etc...it should be fine if you plan to hold for awhile, otherwise maybe a target date retirement fund?
How would you reinvest if you’re invested in stocks? Do you mean to just leave the money? What are some examples of investments, other then real estate, that you would be able to reinvest in? Thank you!
I am willing to put the work in, the hard part is just finding products. I just know that my first ever product is going to be the hardest because I have no clue how to find one, or talk with suppliers etc. But after I get that all figured out I am sure it could work, and my second, third fourth, etc products will just be rinse repeat.
From 2009 to 2017, I took all my extra money & paid down my mortgage. To me it made sense since the housing market was quite strong here in Canada during those years; I'd make a guaranteed 4.39%-2.69% return (depending on my mortgage rate at the time) by paying down my mortgage debt PLUS the appreciation of my home.
However, the past couple of years house prices have stayed flat in my market. Suddenly a 2.69% return on my money seemed lousy & a few months ago I changed my strategy. I now make just minimum mortgage payments & put $300/week into an S&P index fund. It's difficult to pick investments that beat the overall stock market so I think index funds are the way to go - for now. We'll see how it plays out in a few years :)
Graham, just trying to weigh risk/worse case scenario here. In a peak market like yours where prices are high, let’s say you successfully accomplish the BRRRR strategy, and cash flow 250/month after all expenses. If we were truly in a bubble, and the market tanked like 2008, how effected would your investment be? That being, how effected might you think your rent income would be in a market downturn? As always, your videos rock and so do you.
It would have nearly zero impact. As of now, my rents are already under market value - I've rarely raised rents since buying. I'd rather have amazing, happy tenants than top dollar with issues. Given if the market goes down, I'd already have a ton of leeway on price to get the same or more rent. Also, rentals generally do better when fewer people are buying because more people are renting. It's all about just being around long term and not panic selling.
What are your thoughts on investing in turn-key real estate? Some people don't want the hassle of dealing with contractors, or finding tenants themselves. Please consider a future video on this subject, I will like thumbs up share promote advertise worship etc etc etc
Nothing wrong with it, but i wouldn't really call it investing - day trading is really like another part time job. Nothing wrong with it, you can make money in it, but it's important to also factor in the value of your time in trading.
Graham, how often do you refi your properties? I'm considering doing a refi right now since I'm at the halfway point in the mortgages life for either a 15 year for the interest rate or into another 30 year to lower the payment.
Peter Schiff is generally outspoken and always talks about different markets crashing. He’ll be inevitably right a few times. Just hold and don’t panic sell. The market has always recovered when there’s a crash.
Would you able to tell us how to start investing like any particular website and how do we sign up for it and invest our first $100 as a 17 years old. Because most of the business want us to be 18 or 20 years of old .
Always a pleasure watching your videos! Thanks to you and some other amazing people I manage to own a portfolio of $12.000 at the age of 24 in a country where the average salary is about 4 times lower than the US. And that keeps growing because you guys have changed my entire mentality and life decisions. Thank you, Graham!
I bought Bitcoin at $16,700. Decided to sell it shortly after around $17K for Eth. Messed around with that for a bit, then gambled it in XRB* back when it was Raiblocks. If you follow my snapchat or instagram you would've seen my trades ;)
Graham, I am telling you right now I will be a serious "youtuber" with my other channel and we'll eventually become friends IRL. Just like you and Tanner. Dead srs.
You didn't answer my questions tho, which watch were you wearing fam?
If you worked at a hospital, you would know that death tomorrow or in 2019 is a very real thing. I lived it up in my 20s, no budget, traveled int'l 3x per year, etc. no regrets. Real estate happened and I'm doing well in my 30s. If I had to do it all over again, I'd probably spend even more and take even more risk. WHADAMAGUMADO?
Skinkie22 Don't try to cover up your silly comment. You tried to call in question and predict like a Taro reader that I wasn't truly happy with my decisions. Which is the dumbest thing I've heard. You are telling a anonymous person on the internet they aren't happy with their decision, when in fact I couldn't have been happier with my decision. I always have, and will always choose a rich, and incredible life over having more zeros on a screen. Perhaps you should try the same so you wouldn't be so uptight and bitter. Loosen up and stop penny pinching.
I did not say anything about happiness and you didn't say anything about believing in this. so i don't know where you are getting this from????
also, i dont mind what you do in your life but it is weird that you come to a youtube video about investing and telling the straight opposite. but not in the way you want to open a discussion on how to actually make money an other way. but more to brag or some sort about your crazy 20s. it seemed weird to me that's why i said what i said
Skinkie22 Your logic makes no sense. You're gonna tell me what makes me happy, are you a mind reader? Lol! Everything I said I believe 100%. I went from $0 to $1.XMM net worth in 4 years. I didn't "start early", I didn't save, and I didn't budget. I focused on a career that pays well. Nothing else. I don't regret those decisions ONE IOTA. Nice try though. How is your crystal ball doing? Hahah.
Stop having such a fragile ego.(be ause you obviously would not have commented this if you were truly happy with that decision.) He is not saying that it is to late. He is just saying the earlier the better. So if you are doing well. Invest a certain percentage of your income and you will doing even better the older you get
Hey I'm currently getting my license thanks to you Graham. I live in PA and thanks to family members I'm already well connected. If anyone is working in or around Pittsburgh and is looking to network let's talk.
Its not a real story but more of a lesson on compound interest that has been around for decades. There are many stories that integrate this lesson into it. It is to help illustrate how much one penny can turn into in 30 days if you double it everyday. Which happens to be $5,368,709.12
These examples are here to really excite and motivate the new viewer, cuz typical 5% compound interest sounds boring on the surface to young person trying to save 30 to 40 years down the road.
#1 is so true. I recently started my online business documenting my journey on my channel. I just turned 21 and hit 10k revenue in a month. I could only imagine what I'd be doing per month had I started when I was 18...
Congrats on working on the second! Real estate is the biggest one. I have some stock market dividends but that’s just re invested. I get YouTube ad revenue but I see everything on YouTube as a second full time job. But I supposed if I stopped posting it should consistently make about $500/month or so.
Graham thanks for motivating me. U reminded me of me rn in high school I’m failing so bad rn, I miss a lot of school and instead I go work .thanks for saying to start credit at 18 rn I have a 687 in 5 months! I hope I can be like u one day
My dream has always been to invest in real estate because I’ve loved it since a child. Real estate in general is a huge passion.
The risk, the art, the business, the control...
What’s the quickest way to get the capital necessary, should I go to college or follow a path as an agent to build myself up?
So many different ways to go, there won't be one answer to this and it's really just a personal choice. However, probably best to avoid college debt unless it's a degree that'll help you get a job in the field you want to work in. Working as an agent gives you a leg-up because you're dealing with properties every day, building connections, etc...but you have to enjoy the work and be okay working on commission.
Why would I be on Forbes for that? I don't think you understand what that means. I sell $20,000,000 worth of real estate = $20,000,000 in sales. $120,000,000 in sales at an average price of $2.5 million/home = 48 homes sold and averaged over 9 years. There are Realtors here in Los Angeles/Beverly Hills that do $100,000,000+ annually, or nearly 5x what I did last year. You don't get in Forbes for that.
The bigger payoff in the future just seems more appealing to me right now. Plus there's only so much enjoyment instant gratification will get you, after awhile you just become numb to it - and it's easy just to focus on other priorities and then work in vacations/etc as you go along. Pay off debt though...that's an important one.
13,500,000 GRAM Plan to sell.
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