Are you ready to grow your money? We know growth does not happen much in basic savings accounts, right? Where do you get started? This video covers ten things you should think about before investing, or if you are currently investing. Building wealth through investing is not a fast process – whether you are investing in real estate, the stock market or crypto currencies. Building true wealth requires consistency and patience – and in order to be consistent, you want to eliminate the distractions that may knock you off course. Consider these ten things as you look to grow your wealth and leave a legacy for those coming after you.
If you need a financial coach to help you organize your finances, email me at I also do speaking engagements on personal finance.
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I am a financial coach that focuses on improving personal finance behavior. I do not sell investment products or manage investments.
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If you’re thinking about investing or Ways to make your money grow check out This video I have 10 things i need to tell you [Music] About [Music] What’s up everyone thank you for Stopping by the achieve financial Coaching channel where we believe in Breaking the chains of debt and talking About all things related to personal Finance I am kenny simon your personal finance Coach and today I want to talk about investing there is Always a lot of chatter about ways to Make your money grow and things you Should invest in From forex to bitcoin to just investing In a business or even the stock market Today i have 10 foundational things that You really should think through Before you jump into investing in Anything so please Like the video subscribe to the channel Drop a comment and share it with a Friend Now let’s get started i want to start Today’s video with two definitions and The first one Is investing investing is the act of Allocating resources Usually money with the expectation of
Generating an Income or profit and there are many ways To invest and you see some examples here Stocks bonds Different types of funds i like mutual Funds and exchange traded funds Personally But it could be also be business real Estate precious metals like gold and Silver And anything that appreciates so an Appreciating asset could be a piece of Art as well Risk tolerance risk tolerance is the Amount of risk An investor is comfortable taking or the Degree of uncertainty That an investor is able to handle it is Important To understand your risk tolerance when Investing in anything Also important to know that your risk Tolerance can often change with your age Your income Or your financial goal here are 10 Things i like to talk to my coaching Clients about before they invest in the Market The first thing is to pay off your Consumer debt you cannot invest Consistently If you have a lot of other debt credit Cards student loans and things like that It will keep you from investing
Consistently so it’s best to try to Tackle all of that knock it out the Second thing is to have a budget A budget is the cornerstone that to Building wealth it will allow you to Allocate money to your investment so you Can invest consistently Number three don’t invest until you have A fully funded emergency fund Things are going to happen so if you’re Always stopping your investments because You know you had a flat tire and now you Have to buy a tire Then you can’t invest consistently and Consistency in patience is key in Investing in the market so get an Emergency fund three to six months of Expenses So that you can invest consistently the Fourth thing is Don’t invest in things you don’t Understand i don’t care how many friends Encourage you to do so If you don’t understand the intricacies Of how that works how it’s gonna make Money Do not invest in it you may live to Regret it The fifth thing is to play the long game Don’t jump In and out of the market be consistent And be patient Research shows that people who try to Time the market by jumping in and out
They have a lot less in returns than Someone who just stays in when the Market goes up and down Because it will go up and down stay in Play the long game if you have money That you need in You know let’s say one two or three Years i wouldn’t put it in the stock Market only invest money that you don’t Need for Four or five years long or longer the Sixth thing is to diversify your Investments Do not i repeat do not put all your eggs In one basket It is a recipe for disaster and Heartache So i would recommend that you diversify Your investments and think about Different things to put your money in Instead of putting it all in one Investment Seventh thing is if you have a 401k or 403b or You know 457 or just some sort of Investment vehicle at your job You should start your investing there Especially if If they match so i would start my Investing Inside of my 401k at my job if i had one In a match And by the way the 401k or the Investments
Uh vehicle that you have at work is how Most millionaires become millionaires Believe it or not The eighth thing is to know your risk Tolerance i’m going to talk a little bit More about this later but there is a Spectrum From things that are a lot less risky And safe but they don’t give you as much In returns To things that are crazy risky but they Can give you an opportunity to make a Lot of money So you need to know your risk tolerance Everyone’s different this is why you Can’t listen to friends that tell you to Invest in a certain thing I don’t have a crazy high risk tolerance So i’m a little bit more safe i have Some things invested in some things that Are aggressive But not a lot of my money is in very Aggressive or risky things The ninth thing i would recommend is to Get a certified financial planner you Need Someone who can sit down with you and Talk you through Based on your what your financial goals Are the types of vehicles and Instruments You need to invest in and a certified Financial planner can do That i am a financial coach i help
People organize their personal finances And learn how to think about money and Behave with money And learn what questions to ask a Certified financial planner But a certified financial planner can Tell you what investments to choose Based on your goals And they could some of them will also be Able to manage your money But now when you choose a certified Financial planner we want fee for Service only Do not choose one that gets paid based On the investments they choose Because then they start choosing Investments where they get a high Commission You want someone who has a flat rate for Their time And they coach you and they teach you How to think about your money based on What your financial goals are This is critical and then the last thing Is to start small continue to learn And grow listen the more you learn What you invest in may change your Philosophy and how you think about What you’re investing in whether it’s The stock market or business or real Estate May change how diverse you get in terms Of what you invest may change So i would recommend you start small
Continue to learn and grow Because the more you learn about this You know the more comfortable you’ll Feel And the better you are at picking your Own investments based on your goal Okay real quick i want to talk about the Risk tolerance Spectrum that i mentioned earlier so Listen there is a spectrum that goes From Less risky to very high risk and it Is real and you need to understand where You fall On this spectrum before you invest so The safest Kind of things you can do is to put Money in things like cash or money Market or even like government bonds That are Short-term and very safe some of the More riskier things as you move down the Spectrum Are going to be real estate mutual funds These things are kind of moderately Risky Then you start investing in things like Individual stocks You start getting into futures and Options and Gambling and as you move to the right in The spectrum Things become more risky and then i Think at the
End of that spectrum you have things Like digital currency right Crypto currencies um very unpredictable Um and even within some of these boxes That i have listed here there is a Spectrum For example when you choose individual Stocks let’s just pick that one for a Second You know if you choose a large safe Company Then that’s a lot less risky than a new Small company that is somewhere out in Asia in an emerging market or something Like that right so there’s spectrums And you need to understand those nuances But i will tell you as a concept You know things on the left are less Risky but you make a lot less money Investing in those things as you move to The right the risk increases And you can make more money so choose Where you fall on the spectrum i will Tell you Way way way to the right of the spectrum These red dots You see this do not enter sign the most Riskiest thing and again this wrist Spectrum is my personal one way to the Right of that In the do not intersection you know what I put there Cosigning never ever ever Cosign for another human being i hope
After walking through those 10 things You now have a better understanding of How you should be thinking before you Invest your money into anything You work hard for your money so when you Put it in an investment you want it to Work hard for you So there is nothing wrong with thinking Through some things before you jump in Don’t fall victim to the pressure don’t Get emotional when you’re investing and You know everybody’s jumping in and you See Bitcoin or some other investment getting Real hot You need to be logical methodical and Patient And so think through these 10 things add To the list take away from the list Whatever works for you But do not jump in without thinking Through What is happening with your money when You put it into certain investments you Need to really understand what you’re Getting into Before you dive in remember this you can Achieve much greater things than where You are today If you’re willing to put into work Conceive it believe it and achieve it I’ll see you all on the next video if You enjoyed this video Please subscribe to the channel drop a
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