Do This NOW - Once You Save $1,000!

all right so this is really interesting i googled what should you do once you save your first 1 000 and i got some really interesting results that i'm not sure i agree with so at the top of the google page is a yahoo finance article that says to do the following four steps number one hire a wealth manager i thought that's a little weird for somebody who just saved their first 1 000 why would they hire a wealth manager strange step number two it says let this company be your piggy bank and it's recommending acorns which is a great app but it's not the best savings account with the highest interest rate so i thought that's a little strange too step number three it says get this company to pay your bills and then it's at this moment i realized oh everything on the internet is designed as one giant affiliate link to get my money from my wallet and into somebody else's just to confirm step number four it says call this expert to manage your credit yep literally everything so because i thought that was pretty bad advice i'm hoping that this video could rank a little bit higher because nobody should do that with their one thousand dollars because maybe you want to get started with stock market investing because that's where most people are making a lot of money right now or perhaps real estate because that's where most millionaires are made facts there's only one thing and one thing only that you need to worry about right now and that is to believe in the heart of the cards in fact wait what that's a charizard yu-gi-oh card well i'll be darned if that's not the coolest thing i own so welcome to the weird side of youtube at 2am once again and just before you do anything don't buy that thousand dollar yu-gi-oh card and don't hire a wealth manager not worth it just watch the rest of this video you don't need to pay anybody to do anything the rest of this video is free just turn that like button below and let's begin hi my name is andre jic welcome back apparently i like to pretend i'm a sugar glider i don't know what that was but did you know that since the start of the pandemic we are up 50 in the stock market marking the best 100 trading days since the year 1933. i didn't know that either but what i do know is how to put your money to work and the objectively best way to invest one thousand dollars will depend on the different stages in your life and depending on what you want to accomplish i'm a genius but let me give you a list of priorities for how you should invest your money so that you can get those best results here we go so if one thousand dollars is the only money you have and it's your first 1 000 chances are you're probably very young perhaps in your teens maybe early 20s maybe you're graduating from college and this is me just throwing money away to pay respects for all the college graduates right now because now is not the best time but we do have to make best with what we've got and the best way to use this thousand dollars is by investing in yourself perhaps it's getting a real estate license or maybe learning a new valuable trade skill or hard skill and starting that new business idea like my roommate angelo is doing literally right now show me what you're working on hey what's up working on a few designs for my clothing brand something i've been second guessing myself on for a few years so you save some money and you're just gonna launch it yeah i just saved up some money thought this would be a great investment on myself so what do you got enjoyed the roses here today gone tomorrow you got the white edition nice man yeah releasing early september super nervous but super excited so uh i guess we'll see how it goes can't wait man thank you i'm super excited for angelo please show him some love i will leave his instagram in the links below i know it's a risk and it's a challenge and you might lose that entire one thousand dollars and that business idea might fail but remember that could be the best investing lesson that you will ever learn because nobody ever learns anything from winning you either win something or you learn something now personally i like to win more than i learn but in life i've learned a lot more than i've ever won because life uh finds a way 401k matching this is literally the easiest quickest and best way to double one thousand dollars and make it worth two thousand because if you have a job your employer will match anywhere between 50 cents up to an entire dollar for dollar that you put into this account so if you put in a thousand dollars your employer will also put in another thousand dollars and you'll have two up to a certain threshold just make sure to speak with your hr department to confirm your benefits and you might just be surprised but if you haven't already done that please do that right away before the economy gets worse they cut away with benefits or you might not have a job ah the good old emergency fund back in my day we made it a priority to save anywhere between three to six months of expenses i don't know why i'm talking like that but you don't want to be part of the 59 of americans who can't afford a 1 000 emergency expense and you don't want to reach into your retirement accounts to pay for those things either super simple stuff cookie cutter but you'd be surprised how many people don't follow this simple step start investing in the stock market finally the juicy secrets of how to make money online just kidding before you buy some stocks which i'll tell you in a moment exactly which ones i would do first you need to pay off your high interest debt now if you have debt or a loan outstanding that's four percent or greater then i would prioritize on paying off the loan first because when you pay off your loan you're guaranteed a rate of return on your money because some credit cards for example can exceed 19 and you're only gonna make between seven to eight percent in the stock market so first pay off those loans because i would rather have a guaranteed four percent than risk my money for maybe a seven percent or maybe a negative ten percent because the stock market doesn't guarantee results but paying off your debt does now if one thousand dollars is the only amount of money that you have but you want to put it to work you just don't want to lose all of it because it's your emergency savings fund then get yourself a high yield savings account with ally bank i'm not affiliated nor paid by them but if you get yourself that you park your money there you'll earn a small interest rate and the second option that you have is to get yourself one of these it's called a cd and actually we used to listen to music and watch videos with this there's amazing times i actually got my first album when i was 10 years old backstreet boys for life take it yeah vanish bring it back bounce bounce bounce bounce no bounce bounce bounce that was awesome first take now a cd is a certificate of deposit it's an investment that's more like a contract between yourself and the bank which asks you to put a certain amount of money away in this case one thousand dollars into an account that locks your money in for a certain period of time anywhere between a month to five years so you won't be able to use that money until the contract is fulfilled which is also called the maturity date the more money you put into a cd the more money you'll make the longer you lock your money away in a cd the more money you're going to get and like a savings account a cd is fdic insured up to 250 thousand dollars which is nice because it's virtually a risk-free investment but with that the returns of it are closely tied to inflation which is anywhere between two to three percent which isn't very much except right now it's actually closer to one percent so the less the risk the less the returns are gonna get now an alternative to cds are bonds so if cds are like the red eyes black dragon then bonds are like the blue eyes white dragon because they're more aggressive and you make more money except when the stock market is doing really well when stocks go higher bonds don't do as well and vice versa it's an inverse relationship personally i don't invest in bonds or cds because i like to be more aggressive and there's a lot of bonds to pick from but if i had to choose then i'd go with vbtlx which is vanguard's total bond market and if i used apps like robinhood weeble m1 finance acorns cash app whatever it is which i do then i'd look for bnd which is bond the etf version of that also you can look into municipal bonds which is money that you let the government borrow and money that grows from that investment is actually given to you tax-free a little known fact now once you've done all the previous steps we can finally start investing in the stock market which is my favorite but we'll get into all the other methods as well because we're gonna spread out our money so step one create a retirement account something like a roth ira if you haven't already done so which is just an account where you can buy and sell stocks but the stocks that's within this account grow tax-free and when you sell them they're also going to be tax-free which is awesome so when i started i downloaded robinhood and i bought myself 600 worth of vti you can also do something like voo they're market etfs or exchange traded funds that track the stock market vti is the entire stock market and voo is the u.s stock market but they are nearly identical in how they perform i'd also put another 100 into a growth etf like qqq which is heavily skewed towards the tech sector tech companies have so much money and so much data on us that they can virtually build any product in the world until they disrupt every sector in the world until they literally run the entire world and i know that sounds maybe far-fetched to you but think back 10 years ago it's not that long ago that amazon was only shipping books it's not that long ago that apple was only shipping the personal computer who knows maybe amazon could be shipping pre-made houses to people in 10 years from now maybe apple could be shipping the apple car but if you want to be more aggressive you want to put more money into something like this but you can also substitute that 100 into real estate with something like the fundrise app which is what i use or something like vnq which is vanguard's real estate market that tracks the returns of the us msci index then i'd put another 100 into the international market etf which is vxus because who knows maybe the united states won't be the highest fastest growth sector in the world maybe the international market will and then i'd put another 100 into something like vym which is vanguard's high dividend yield etf which is paying approximately three percent per year which out of a hundred dollars will pay you just three dollars which doesn't sound like a lot but it grows so fast and you don't even need to sell that stock nor care much what the stock price is because you're gonna get paid either way for the rest of your life it's such an addicting way of investing and it is literally my favorite way and for my last 100 i would just use as play money and i would invest into lots of individual stocks because with that 100 i could own as many as 100 companies because with fractional shares i could buy each stock for literally as little as just a single dollar because glue and tape and with that portfolio i'd own the entire us market emerging markets the real estate market bonds as a hedge for protection and for 100 i'd have the coolest learning lesson plant the seeds of success for your kids by leaving behind a legacy with a 529 account now this is a college fund that sort of works like an hsa it's amazing check this out triple tax advantaged in that it can be used as a tax write-off to offset your income for that let's say thousand dollars that you put in then the money that grows in this account is also tax-free and whatever amount that money has grown into after let's say 20 years can also be used tax-free as long as it's used for college related expenses beer pong notwithstanding and once you reach one thousand dollars the next milestone of ten thousand dollars will be easier to reach if you start tracking your net worth you can use mint like i do or personal capital or a spreadsheet you manually plug your numbers into that works as well and your next milestone after ten thousand dollars is fifty thousand dollars if you can get to 50 000 the next one of a hundred thousand dollars will be a little bit easier but it's going to be your toughest challenge yet and if you can get to a hundred thousand dollars the next 100 000 would be easier and quicker because of something called compound interest which just takes your money and literally multiplies it like this and again and again and one more time again like this except nothing like that at all i just wanted to show off my magic tricks that you've seen a thousand times before this video is dumb how do i turn a thousand dollars into a hundred thousand dollars in a year well if you can invest in the stock market and get a very generous rate of return of ten percent per year you can turn a thousand dollars into a hundred thousand dollars by waiting for 49 short years or you could just play the lottery and do what mr beast did where he spent a million dollars buying lottery tickets and even then spoiler alert he did not win and that's because you have more odds of getting struck by lightning eaten by a shark getting hit by a meteorite than you do actually winning the lottery the only way you're actually gonna turn a thousand into a hundred thousand dollars is maybe if you get lucky with penny stock day trading which i've tried and i've lost more than two thousand dollars doing that so i don't recommend it to anybody but alternatively you can use something like put options yolo style on sp y with a ten to one margin account and maybe get lucky but you probably won't and the other real actual way is to save 50 to 65 of your income do that and invest that income for 10 to 20 years and then you'll be considered wealthy or just get lucky on youtube and if you've made it this far you can start investing for free with two free stocks by signing up with weeble you can get one free stock valued up to 250 dollars and if you fund that account 100 you get a second free stock valued up to 1400 and you can get another free stock with robinhood that's three free stocks follow me on instagram i post from time to time you can also join my free discord group where we talk about investing i told you at the beginning of this video that everything you read and watch on the internet is an affiliate link and i'm no different so hopefully you got some enjoyment out of this video love you enjoy the rest of your weekend and i will see you back here monday and [Music] friday [Music] [Music] tv [Music] you

Channel: Andrei Jikh

Views: 1,189,692

Rating: 4.955759 out of 5

Keywords: saving, how to save, saving money, how to save money, money saving tips, how to, how to invest, How to invest, Robinhood, dividend, dividends, dividend investing, stock market, how to be a millionaire, investing for beginners, stocks for beginners, robinhood app, invest, stocks, andrei jikh, Passive income, credit cards, how to invest in stocks, real estate, Investing in your 20s, save $1000

Id: dOHjKLmDiqg

Length: 14min 23sec (863 seconds)

Published: Fri Aug 14 2020