“You have to invest your money to make money.”
We get a variation of this shoved down our throats but we don’t know what to do about it. We all know at some level that the trick to building wealth is to invest money. You already know that you should be investing your money into something.
The problem is that most of us don’t know how to actually start investing. We get unsolicited advice from a drunk uncle over dinner or we see some “proven” system online. We get confused and don’t do anything. I’m going to share with you what you need to know about investing your money so that you don’t go broke and so that you don’t miss out on life changing opportunities.
Have you been thinking about getting into investing? Do you want to finally start investing your money without feeling so anxious?
I want to help you. I love investing money. I love using my money to make more money. I love to bring money in without actually working.
I know how it feels to be confused about investing money. I’ve spent a fortune on “guaranteed investments” and I’ve tested everything out so that I can now help you.
When did I start investing money?
From working at a carnival as a greedy teenager to studying finance in college, I’ve always been fascinated with investing money and making more money.
I started investing at 13 when I purchased boxes of chocolates at the dollar store to turn around and sell door-to-door. I claimed to be involved with some “student employment program.”
I actually got this idea from two guys who claimed to be involved in that cause. A buddy of mine found an ad on a street sign and we started selling chocolates. We would meet these guys after school. They would then drive a group of us around in a van to sell chocolates.
This was shady to put it kindly. I don’t know how this was even allowed. I can’t even imagine these guys pulling this off today. We eventually cut them off when our parents freaked out and went freelance.
I hated spending the money on the chocolate boxes because I didn’t have much money. I would then try to flip these boxes of chocolate. That’s where I first learned about the power of spending the money today to make more tomorrow.
I eventually got involved in stocks, real estate, and investing in yourself. I’ve helped readers and friends figure out investing.
What do you need to know about investing your hard-earned money?
These are all things that I either learned the hard way or through studying other investors. These rules will help you so that you don’t miss out on investments and so that you’re not stressed out 24/7.
Rule #1: The investment has to pass The Seinfeld Test.
Did you watch Seinfeld? It was a show about nothing. Everyone knows what Seinfeld was about. We all call it a show about nothing. There’s nothing confusing about it.
Can you you describe your investment? Do you know how you’re going to get paid?
If you can’t explain this to a ten year old or to your grandma then don’t bother.
When I buy a stock, take a personal training course, or buy a rental, I know exactly what the investment is and what the potential earnings are. Watch out for random “proven income systems.”
Rule #2: There’s no such things as “guaranteed high returns.”
There are guaranteed investments but they don’t offer much in terms of the interest rate.
There are no guarantees with high returns and low risks. You likely already know this but I’m just here to remind you. If anyone promises guaranteed high returns then it’s usually a scam. It’s tough to get anything over 5%.
Rule #3: Investments are a long-term thing.
We live in the Tinder era where you can get a date faster than you can order a pizza. Don’t let your Tinder mindset destroy your investments. There will be ups and downs. There will even be no movement for periods of time.
Try to think of the long run. Most investments aren’t get-rich-quick systems. If all works out, then you’ll make money in the end.
Rule #4: Only invest money that you have.
“I’m thinking of taking out student loans to have money for investing.”
I met a friend in college who was actually doing this. They were using borrowed money to invest in the stock market.
I’ll say this: only invest money that you personally have if you’re not an experienced investor.
I’ve spoken with readers who wanted to invest their student loan money or to borrow money to take some risks. I get it. It’s exciting and well chase the thrill sometimes. I just don’t want to see you go bankrupt.
Rule #5: We all have different levels of risk tolerance. Know your level.
What’s your risk tolerance like?
You have to be realistic with yourself so that you don’t end up being stressed out 24/7 while you invest your money. Only you know what you can handle.
People will be jealous of what I have but they haven’t take the same risks as me. I’ve taken some foolish risks that I don’t want to discuss publicly because you guys would laugh at me. You can read up on some of my best investments.
Rule #6: You’re responsible for your own money.
Nobody will ever care about your money the way that you do.
Even if you hire a financial planner, it’s still your money.
I know that it’s tempting to trust someone else with your money because you don’t want to deal with it. Try not to forget that it’s still on you.
Rule #7: You have to research everything.
We will look up the Instagram of every brunch spot but then we’ll go and invest money into a stock because we heard that it was a good investment from some stranger at the gym.
I want you to research everything. Treat that investment like a new brunch spot in town. Look at everything.
I studied real estate for two years before I made a move. The more money that you’re putting down, the more research that you need to do. It took you a while to save this money so don’t be so quick to just hand it over.
Many financial people are against the idea of keeping money in a savings account. I’m all for it. Sometimes the best investment is the one that you don’t make.
Rule #8: There are different kinds of investments for different levels of money.
We tend to look at sophisticated investors for advice. This is the wrong strategy because you’re not at that level yet. You have to work your way up to it.
For example, people will often ask me to what to do with $1,000. I tell them to go on a vacation. That’s just not enough money to make a sophisticated investment. The good news is that you ca invest in yourself.
You have to level up. Your first investment won’t be $100,000 on a stock pick or a new duplex in town. You’re going to have to start off slow and work your way up.
[I personally use Questrade because they make investing very simple.]
When should you start investing your money?
You can start investing right now with just $500. You don’t need to have huge sums of money saved up to start investing. You don’t have to wait until you’re rich to get in the game. Investing is for anyone and everyone.
How do you begin?
You can start investing your money by making small moves.
We all want to make bold moves, but most of us aren’t going to begin with a small fortune. We’re on our own. You can start small. You can start with what you have right now.
Here are a few small investments you can make to test the waters:
- Flip stuff. Can you try flipping something? The goal is to make an investment and then turn this product for a higher price. This is how all investing works. You buy a property, business, or stock in hopes of selling it for way more money down the road. Test this out at a smaller level first just to get the basics down.
- Buy a few shares of a stock. You don’t have to invest in Google or other shares that you can’t afford. Try buying cheaper stocks to see what the process feels like.
The goal is to test the waters so that you can get a feel for investing.
You can invest in yourself to get started.
The goal is to build up enough money so that you can make some real moves. Most people try to look for ways to do something with $1,000. I think that you should keep on investing in yourself until you have a few thousand dollars ready to make some moves.
Your challenge is to spend money on something today that will help you make more money tomorrow.
Read up on investing if you’re ready to make some real money.
- What you need to know about investing in yourself.
- Feeling lost? Investing for beginners.
- What Instagram weirdos won’t tell you about passive income.
- Everything you could want to know about buying real estate.
Investing your money is the best thing that you can do today for your future self. Follow these rules and take some risks when you’re ready.