INVEST In These 5 Assets and NEVER WORK AGAIN!

hey guys are you tired of the never-ending 95 grind and you want to Crave yourself a life where work becomes optional I know that can sound very dreamy but it can actually become a reality today I want to explore five different assets that you need to explore investing in for yourself to never have to work again if you don't want to today I want to make it super real I'm gonna be sharing this today as though I was giving advice to my own mum I do know what my mom to lose lose even a penny or a pound of her hard earned money so today I want to share with you what I would literally say to my mum if she had that same desire in her own life as well now before I jump into these five different areas I've got a favor to ask you guys about 51.7 of you guys who watch our videos weekly and monthly are currently unsubscribed that's a huge number it would mean the world to me and the world to my wife Mary if you please hit the Subscribe button especially if the videos we're making are helping you to improve your personal finances it will help us enormously as we work towards getting to a hundred thousand subscribers as at the time of making this video we're currently at 68 000 subscribers and it's felt like forever getting to where we are and we appreciate every single one of you who has subscribed now before we start I'm going to these five ideas let's explore some mindsets I'm going to be explaining something to you a concept that has helped me to really think of wealth very differently it's a concept and I hope you can see this of the stock and the flow now what are the stock and flow and how did it relate to this idea of the five different assets I want to talk about today you see when you think about your wealth building what you want to achieve is a world where you've created a balance between stocks which are assets the things that you're building and the flow which is your income or the inputs you're putting in in order to create income now you see most people focus all their efforts on the flow over here so they look at their jobs yeah people want to use their jobs to create the flow and this is where the whole idea of um you know following the Joneses or lifestyle creep comes in because all we're really focused on is using our job to create that flow and for that flow to then support our lifestyles and that's it sometimes we get that money we're happy and then we try to get more money and as we get that pay rise we over time then look into potentially uh lifestyle creep you know buy that bigger house buy that bigger car all those things go on a bigger holiday and so on whereas if you want to create a life where work becomes optional what you want is to create flow that therefore goes on to create your stock okay you want some of your flow every single month to be put aside to help you build property to help you build various assets I'm going to be covering five of them specifically on today's video and this is where it gets even more beautiful over time what you then want is for your stock to then start to create your flow and then to create this circular motion where even if you're getting money from your day job that money goes in to create more stock and then that stock goes on to create more flow in your life and therein is a circular motion you want to create that balance of stock and flow in order to make your work completely optional one day I know this is possible because I've done it with my wife Mary and I know many people who've achieved this in their lives in their 30s in their 40s and their 50s and Beyond and I know this is possible for you as well so let's jump in and let me share these ideas and if you're really enjoying today's video please hit the like button and don't forget to subscribe as I mentioned earlier now I'm gonna say this right it doesn't matter get into a lot of detail on the thing I want to say though is please don't watch this and think that's Ken over there and that's me over there yeah good for him and he's gotten to where he is in his life I want to start by saying that I started with nothing no assets no money no inheritance nothing so what I'm going to be saying to you right now like I said is what I'm going to be sharing if I was talking to my mom and my desire for you is that you pick one idea you grab onto one thing you don't watch this as entertainment but you see this as you know what this person is sharing with me like game changing information that I can use to change my own life but start small but actually do something with them so the very first asset I would invest my money into is into stocks so this is different to the stock I mentioned earlier because it's a part of that stock your body of assets but here I'm talking about stocks in the stock market okay now with stocks I'm looking here because I've made some notes on my fame now with stocks what you're doing here is creating ownership in companies you're earning a piece of the pie so that when those companies therefore go out there and try to increase their share price and their employees work hard they are working hard for you so for example if you buy Amazon stock or Apple stock or Microsoft stock or whatever or a fund that has all those things the people who are working in all those companies are working hard every single month doing their nine to five jobs to make you richer and wealthier over time so the first area of stocks Stock Investing is passive investing we talk a great deal about this on this channel here we're talking about investing in index funds and ETFs essentially investing in passive trackers that track a an established um uh list of stocks uh lost my words there for a second an index such as the S P 500 and so on you are tracking that and therefore trying to gain the performance of the marketplace okay and that performance is good enough and by doing that it's a hands-off way of investing your money and money gets to work the goal of investing in index funds is essentially for you to invest for capital appreciation you want your money to grow over time and you also want to as part of that to invest for income so that's that money that dividend you're getting from investing your money in index and ETF so then reinvested to help your wealth through great over time so that's passive investing and if you've not seen videos so that I'll explain post you to a video we've made recently to help you next apart from passive investing is active investing now I'm not a huge fan of active investing but there are some exceptions I make first is individual stocks should you be investing in individual stocks now for most people I'll say no because stock picking leads to you mostly most likely to lose your money you're most likely to do it but not everybody could lose their money from picking stocks I've done well from selecting individual stocks I've done well picking specific stocks for my children Apple stock Amazon stock and so on using their birth birthday months including our own portfolio of our pension and so on so you can pick an individual individual stock but for most people it's a night because you most likely lose your money okay and even if you wanted to pick an individual stock our policy is don't use more than five percent of your money to pick individuals individual stocks do it for the learning do it for the fun do it for the adventure do it for the potential returns but don't make that a key part of your core investing strategy next part of active investing is dividend Stock Investing now this is where I make the exception when it comes to investing in individual stocks because you are doing a lot of research to invest in a stock that pays you a dividend that's their core strategy when companies make money and they make their profits they do two things they can either pay a dividend for shareholders or they can reinvest some of their money into their business to help their business to grow uh invest in marketing you know product and development that kind of stuff so you want to pick that stock and they're different stocks we've made videos about this which are linked to below and above specific for dividend uh income investing so this is a this is a another way of investing for that flow but you're investing in that dividend stock as the stock that will help you to create that flow now the Third Way looking at active investing is to look at unquated companies unquoted companies by the name are uncrated on a stock exchange per se they're not like listed somewhere where you can invest into them per se they're not on the main markets okay like your London Stock Exchange and so on okay now you can invest in some of these via schemes in the UK for example I'm known as Venture Capital trusts vcts or Enterprise investment schemes Eis or the seis which is another scheme for unquated companies these schemes which you can research you can Google help investors like you and I to basically get a tax rebate they get us to invest in these unquote unquated companies with the goal of effectively giving us a tax rebate essentially a weight of the government saying they are trying to put money into onquoted companies and by us putting our money into those companies we benefit through tax rebates and over time we benefit through our money working for us and us then generating dividends on a regular basis by investing in those types of companies okay I've done it I've invested in on Creative companies via vcts Venture Capital trust I still own those shares even today okay as part of my Investment Portfolio okay so in the investing Arena I personally focus on passive investing index funds and ETFs I've got some individual stocks in my pension I've got dividend paying stops I've also got some unquated companies via vcts now you choose what works for you based on your attitude to risk but I've given you a bit of a a rundown of the core areas that I will focus on from a stock perspective and I'll link below and above to our investing playlist if you want to learn a lot more the second part I'd focus on is to look at property investing bear with me because I want to go into detail because I don't want to gloss over these things because I want it to be real because as I said this is as though I'm giving my mom the advice when I look at property investing I will start with something unusual the first is international property okay now here I'm talking about looking outside the UK looking at other parts of the world like Portugal you know Lisbon and so on all looking at the African continent looking at gar now or other parts of West Africa looking at South Africa for example in those core cities joburg and so on those are areas you might want to consider and the reason you might want to do this here is because of income and capital appreciation when you invest in property you're typically aiming for two things either capital appreciation or income as a way depending on your goal okay so what the method you choose to invest with would depend on what your goal is whether it's capital on income this International property strategy figures primarily on capital appreciation but then it will create your own income via things like Airbnb and so on okay but because it's outside the UK the rules are slightly different you might be able to get a mortgage out there you also get properties a lot cheaper that's for sure okay that's the first strategy International property second strategy is flipping and your goal here is clearly capital appreciation effectively you are operating here as a property Trader okay you're buying something you're fixing it up you're selling it on for a lot of money potentially yeah that's the whole idea you're doing this and you're repeating this every six months to one year to two years you are trying to flip this suits certain people who don't want to deal with the whole Malarkey of like trying to rent out a property they just want to flip get their money and get out okay and that property is still legit today you can still do it today okay but it's about finding the right thing that strategy too strategy three for property is the buy to let this is a cool thing people do the goal here is obviously regular income which is why people buy it and let at properties uh however obviously buying property and letting out means those properties exist and they will increase in value over time so you have Capital appreciations go with that as well however there are obviously challenges would buy to let relate it to the likes of regulatory changes tax changes there are many things that are going on so this is an error you might want to consider again we've made videos on you know property before feel free to check them out over on our property playlist the fourth strategy is HMO House of multiple occupancy quite similar to buy to learn but this time you're renting on a per room basis and your core strategy here is to max out on your Returns on your income because you're renting by room and you're much more likely to generate a much higher return and obviously that diversifies your risk a lot more than renting out one property out to a whole family for example okay so these suits some people but not everybody else the fifth strategy is to recycle your cash the goal with this one is essentially to build an income stream by limiting the capital you need to invest so imagine you've got just a bit of capital your goal then is to recycle that yeah you find properties that need refurb work you do them up you add value you refinance and you get your money out essentially your goal is to limit the amounts you need to put into another property such that you're then using the same money and recycling it into other properties okay and this obviously takes time the next strategy from property perspective is to lock away a lump sum this is what you literally said you know what I've got some money let's say you've got 50 Grand or 100 Grand and you're saying you know what um I want to lock it away by investing in a a really nice flat in a really a busy part of town really a great location in a busy City close proximity to your station blah blah blah blah blah and you know it will go up in value significantly because it's really well on the kitchen let's say for example in London making it up yeah and you lock that away your goal simply is you've invested and your core strategy is capital not necessarily the income the income comes in and pays the mortgage and what have you uh but your core stretch is capital appreciated so it's capital appreciation such that in say nine years or ten years or whenever your time Horizon is you can sell that property and free up your money because some people do that it's a great strategy next is rents to rent as the name implies you're not actually getting your feet wet by owning the properties you're renting a property from somebody else and thereby going ahead and finding um you know making your own in a way and renting it out somebody else and then you're making that profit in between this is a core income strategy that then has a potential to create for you your own property by then you're accumulating all that income you're generating your profits and investing into earn your own units okay and a final strategy I've got from the property perspective is commercial property here you're looking at the new permitted development uh rights and things now a lot of that seems like there's I've gone through a lot of strategies having a property perspective if you are interested in learning a lot more about these like I said I probably Point into useful resources feel free to check out our system brand over at Financial Joy Academy where we have courses across all these areas whether it's by to learn HMO rent to rent uh commercial property and so on I'll link to it below and above feel free to check it out in your own time learn more and join if you find it if you find it useful the results of property Mastermind that we run which is included you can join that and meet real property investors and learn from them as well um the third area of uh assets the stock that I would invest in third area of assets is a business guys this is one of the most common ways of Building Wealth okay if you don't have it in you if you don't have it in your Ambitions to grow to start a business that's okay but I personally think that this is one of the fastest ways of Building Wealth particularly in this age where you can use artificial intelligence you can use all the tools that are available for you to create opportunities that you don't really need to run somebody else can run for you and make it work you can even automate a lot of it to help you to generate a lot of income and lots of wealth over time but let me break it down okay what are the different areas of business the first area is startups okay startups obviously by Nature run by other people okay and you're doing this through the likes of Angel Investing you're putting a bit of money in and you're looking to see that money becomes something now you want to be very clear a lot of people who put money into energy investing lose their money a fraction make money or a fraction of what you put in my turn into something worthwhile so I'm going to be very clear on the risks okay that's startups next area of business is to invest in basic boring businesses here I'm talking about your hair salons your dry cleaners your nurseries your nail bars I know about these businesses because my family members all run these types of businesses okay and I'm involved in a number of days as well okay your goal here essentially is to turn uh those businesses into an income earner because you can invest in basic boring businesses and actually have no active involvement in running those businesses yeah my family run a chain of nurseries I don't really get involved I just like I just offer you know advice and guidance and wisdom yeah but you know it's a part of my overall picture from a kind of wealth building perspective a kind of net worth perspective so you don't have to be involved necessarily you just just have to be involved and kind of observe from the outside and maybe turn it into an income generator if you need that income you also have the option of selling those basic boring businesses because businesses are built so you can one day exit them potentially if that is a strategy you want to pursue so it's not only the income through the dividends you can generate from your business which is you know tax at a lower rate to General income tax but um or income from your salary but you have that option of then selling those businesses okay so that's basic boarding businesses covered the third area of business for me would then be to create an online based business this is by far my most favorite part because I genuinely think that everyone has it in them the capacity to create a successful online business and I say that because a lot of online businesses are low-cost startups things you can actually begin on your own alongside your day job and do it and learn the skill because there is a real skill required to run an online business successfully online businesses that spin to three categories it's product-based online businesses so you're you're you know your Amazon FBA type things your Drop Shipping all those in your e-commerce essentially product based or you're selling a product based thing online okay the second is your service base where you are providing a service online like coaching or graphic design or copywriting or whatever or you know tutoring it's an online based uh a service based online business the third type of online business is your content-based online business which is similar to what I'm doing right now I'm creating a YouTube video that's a piece of content I'm writing a blog post that's a piece of content I've created a membership platform that's a piece of content in there yeah all those types of businesses the type you choose to go for whether it's product or service or or content would depend on your priorities how much time you've got what your income goals are and things like that okay as I mentioned earlier if you're interested in learning more that kind of stuff or learning from other people or being in a space of community of people learning and implementing those things check out Financial Joy Academy as I mentioned earlier where we kind of cover all those things for online business wealth building personal finance property investing again I'll link to it below and above learn more in your own time and see if it's suited for you okay number four after the after the business looking at Investments number four is precious metals okay now this is a bit of an odd one because precious metals I'm talking here Gold Silver and things like that okay and actually earning the actual units themselves the actual metal units now the reason I'm mentioning this one is that such precious metals are great essentially because they maintain the purchasing power of your money so you have two options you can either leave money in your bank or you can if you don't have money you've invested and the other as I've mentioned like stocks and property and business and so on you could invest it in precious metals because they effectively act as a hedge okay gold has historically been known as a a store of Valley a thing that essentially uh helps you to maintain the purchasing part of your money okay and holding that can help you in kind of the worst case scenario you know where you have your money you can always say doomsday scenario where you have your money invested in something that's completely outside of the stock market and so on outside of a property market and so on okay but the thing I want to mention is that those precious metals do not create an income for you yeah so property creates you an income the stock market creates you an income uh invest in your own business creatine income but investing in precious metals does not create you an income the physical units okay but it does have its own value in that it's effectively you know the stock as I mentioned uh in this thing here in this diagram it's effectively stock and its goal is to is to keep the value of your money and it is to prepare you in the event that the worst case scenario happens and so on then the fifth and final asset that I would invest in is to invest in yourself now I mentioned this one because I must see as the the Supreme asset to investing the foundational asset to investing that would then create the domino effect for everything else I've mentioned to actually fall into place for everything else has start to happen okay what you're aiming to do here is um uh look at different ways you can invest in yourself don't be asking yourself well how do I actually do that Kim areas I will prioritize from invest in yourself perspective on uh and by the way the reason I mentioned is beyond it being the the foundational asset is that invest in yourself will give you the highest return on investment over time I know for certain that I've had the highest possible Roi return on investment by investing in me over the last decade and Beyond yeah so I you know giving you the advice as someone who I care about and who I want to actually win in life I'd say investing in yourself should be the core foundational thing that you actually do but how do you actually do that Ken well here are the different areas that I would focus on first I'd focus on your emotional intelligence and communication skills now investing in your in developing emotional intelligence and communication skills these qualities these qualities are highly valued in a professional domain and in a personal domain yeah so for example communication skills are brilliant without my communication skills I couldn't possibly be making these videos I couldn't possibly become a speaker like I get called on to come and do very soon go and do speaking come and do workshops come and do uh you know things like that speak at schools and stuff like that had I not over time developed that communication skill yeah where there's verbal communication or written communication had I not developed that over time as well as the emotional intelligence emotional intelligence it's all about just um being able to gauge uh emotionally uh they're setting you're in yeah so it's in certain spaces I'm in I'm able to kind of gauge what's actually happening and maybe to apply my emotions to certain situations I'm able to empathize with people's uh situations that they're in you know because not everybody is at the same place at the same time pick the cost of living crisis for example that we're all going through in the UK and Beyond emotional intelligence is required to kind of sense that in certain things that I might need to talk about I have to be very careful to be aware that certain people are not at certain places in their lives financially and so therefore I have to make sure that I'm applying that intelligence to make sure I'm also catering for those people so essentially emotional intelligence and communication skills if you can work on that in different ways there's skills you can acquire over time will help you become a much more uh valuable in individual in the open market you know out there okay so that's one area the second area I'd look at is side projects and Entrepreneurship when it comes to investing in you I've I've learned that side projects and Entrepreneurship have helped me to reduce and remove the fear of failure I know the fear of failure is something that you probably can relate to and I face that fear in different ways and at different stages of my journey but I think I've found site projects and Entrepreneurship not necessarily things that make you money but things that are encouraging your creativity what I've found is that taking those small lips of faith those Faith walks has helped me as an individual and improved my capacities to do more so let's just do my capacity has expanded because I've taken leaps through side projects and Entrepreneurship and as a result of that I've been able to create other things that are maybe diverse income streams and you know business opportunities and joint ventures and stuff like that yeah and by the way speaking of joint ventures in case you're thinking to yourself when it came back to the property stuff I mentioned earlier one where you can build that Capital because obviously everything involves money is through joint ventures actually collaborating with other people and pulling your funds particularly in communities I know that's for sure in communities that don't have that haven't actually started off with a lot of wealth for example in the black community you know that I that I lived through and I've lived through and continue to I know that the likes of joint ventures and obviously other ethnic minority groups I know that the likes of joint ventures are what we need as as one way of actually you know creating asset and owning assets and things like that the next way of actually uh investing yourself is through your financial literacy we obviously know that that's why you're here on our Channel watching these videos but uh Financial education for me has been a game changer I've had to learn loss of this the hard way but I'm always investing in myself I'm always reading when I'm reading Financial Times or down reading General news uh or whatever when I say General news I mean like like news I actually seek out things that actually uh going to help me grow as an individual rather than just consuming like random things that have been posted uh or whether it's me um learning through books and through courses and through other communities so or watching videos on YouTube like you are financial literacy is absolutely key the next is networking and building relationships now cultivating meaningful uh connections and expanding your network is what I'm referring to here and also friendships like I saw a video the other day of this girl who was saying how she basically had no friends and that video really hit me emotionally because I thought wow you know this is a really big problem you know a lot of us don't know how to actually Network we don't know how to actually connect with people we've lost that connection because of the likes of social media and so on where we effectively have this fake world where we don't really we're supposedly connected but we're not connected at all and I got really actually actually really I actually felt quite felt quite emotionally um I couldn't explain it I just felt I felt quite sad it's probably the best ways to put it because I thought wow they're actually people out there who don't know how to connect with other people and that's why for me personally doing what we do here on YouTube and you're trying to build a community of people and then building Community offline because we do offline meetups and so it's actually pretty important because it's through there that you get to meet people it's true that they get to actually meet real friends people who understand what you're doing who uh can empathize with your journey who can empathize with where you're trying to get to and the challenges you might have and who might actually have ideas for how you actually get there so I'm not saying this because it's you know it sounds good or it sells you or whatever I'm just telling you because that's that's just the reality of it it's you have to put yourself in those spaces where you are getting to meet people who you could then potentially become friends with and network and build real meaningful relationships with next area of uh investing yourself is Health and Wellness do you know what I'd say this is one of the biggest areas for me on a personal level um you know I'm talking here food rest sleep you know uh workout and that kind of stuff and then the final bit is continual learning okay at that ongoing learning is absolutely necessary to invest in yourself in conclusion what we want to create for ourselves is what I call a multi-stock and flow approach okay it's a combination of those different investments in those stock areas I've talked about property business at the stock market investing in yourself investing in Precious Metals For example that then creates that flow over time such that you don't have multiple sources of income driven by your approach to investing in these multi-stock areas I mentioned in today's video and I also wanted to say that it's important to take things slowly it can all seem very overwhelming and you might feel that you know what there's so many things that I need to look into potentially that it even paralyzes you that's it focus on one thing pick one thing I've talked about in this video in fact jump in the comments and let me know what your one thing is which one of the five things I mentioned today will you be focusing on as your very next step and why jump in the comments and let me know what that one thing is for me personally it's about focusing on that one thing in order for each then Implement that one thing see over the next six months or the next 12 months and once you've implemented that one area you can then move on to the next area okay and I wanted to wrap up this video by saying that you know I've not talked obviously this list I've shared today I've looked at only five areas areas that I personally have complete experience of tried and tested but there are other areas I didn't talk about a lot of speculative Investments that exist out there like cryptocurrencies and Beyond I didn't talk about them on this video today simply because um those are areas that I didn't think that if I was giving my mom the advice I wouldn't point my mum towards yeah but that doesn't mean that it's not an error you might you might not you might want to explore yourself you could explore it yourself if you wanted but what I would say is always apply apply a risk-based approach to your investing aim to have a maximum of five percent and I've had people laugh at me when I talk about this in the past they say oh well how can you only apply five percent to crypto I'm like yeah you know I'm trying to keep my money I'm not trying to lose my money right so a maximum of five percent to all speculative Investments including any cryptocurrencies or anything like that okay but overall take this multi-stock and flow approach and I believe very strongly that if you took the advice I've shared today on this video you will one day design that life where you will make work you make your work completely optional and you might continue working but you do it because you love what you're doing and it's not necessarily because of the money thank you guys so much for watching today's video and as always in all things be thankful and seek Joy take care people and bye for now

Channel: The Humble Penny

Views: 24,284

Keywords: income producing assets, financial freedom, escape the 9-5, escape the 9 to 5 life, escape the 9 to 5, personal finance, Escape the 9-to-5 Grind, best income generating assets, best income producing assets, best income producing assets 2023, the humble penny, humble penny, financial independence, financial independence retire early, investing, investing for beginners uk, investing for beginners, how to make money online, passive income business ideas, dividend investing, uk

Id: n8C1K2BWdKw

Length: 32min 18sec (1938 seconds)

Published: Tue May 23 2023