Welcome! Let's Talk How To Win with Money
Rule #1 Keep Your Eyes On You Own Paper (Mind Your Own Money)
Rule #2 Expect Problems & Have Them For Breakfast (Prepare for Emergencies)
Rule #3 Every Dollar Must Have A Job (Budgets Suck, But So's Being Broke)
Rule #4 Spend Less Than You Earn (Debt Could Be The Death of You)
Rule #5 Use Credit Wisely (Credit - Getting It & Maintaining It)
Rule #6 Let Your Money Work for You or You'll Always Be Working For Money (Investing)
Closing - Keep Learning and Keep Earning
Lesson #6.4 Investing Is Simple – Here Are The Tips For Winning At It (3:30 mins)
Investing is very simple. People are the ones that make it hard.
For a few reasons:
- You’re more likely to pay someone to invest for you when it seems complicated
- Some people get paid a lot of money in fees etc to keep you confused
Truth is, you can make investing as simple and carefree or as complicated and stressful as you want it to be.
So in this lesson let’s break down the rules for winning with simple investing
- Start early
The earlier you start is the more time you have for compound interest to do its work and the fewer funds you have to put in.
- Start with what you can
Don’t feel if you can’t put in $1000 a month then you can’t invest. If it’s starting with $10 a month, then start there and add more when/where you can.
- Start with what’s easiest, and advance when you learn more
You don’t have to know everything about stocks, bonds, ETFs, etc to start. You don’t know the tub and guts of the microwave but I’m sure you use it every day don’t you? Just enough to get started.
Start with the easiest route and you can expand when you know more (we’ll talk about starting in the ACTION lesson).
- Be consistent
Create an investing habit where you set aside a portion of your earnings every month, rain or shine, no matter what. That way you are always paying your future self.
Even better, let your money get invested automatically so you don’t have to think about it.
- Have Patience
Lasting wealth doesn’t happen over time, so don’t try to get rich quick, try to
- Know that investing has some risk so don’t go crazy (see the investing don’t list)
And here are the don’ts of investing:
- Don’t invest money you’ll need in the next 2 – 3 years
So don’t invest your rent money
- Don’t chase get-rich-quick schemes
It’s easy to feel your missing out when you see others ‘making money faster’ but we’re not about taking part in risky behavior that can cost you in the long run (don’t worry, we’ll talk about how to accelerate the process the right wat).