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Here’s How To Invest With $0 | How To Invest Without Money

January 21, 2020


You hear it all the time in order to
become rich you must make your money work for you and one of the best ways to
do this is to invest unfortunately the average American only has around eight
thousand dollars in savings of which most is required for daily living
expenses and maintaining an emergency fund however even with a small amount of
money you can make your money work for you therefore in this video I’ll share
with you five easy ways to invest with a little money and if you’re new to the
channel then hit the subscribe button below for more life-changing content now
you may be wondering what does he mean when he says little money do I need five
thousand dollars saved up to start investing the answer is absolutely not I
understand that not everyone has that much money put aside so the investing
methods I will go over will require only $500 to get started and as your money
starts to grow you can decide further how you want to invest this extra money
but Betterman boss I don’t have $500 how can I start investing if $500 is a
stretch for you then before you start investing I strongly suggest you start
to employ the cookie jar approach not familiar with this approach let me
briefly explain before you can start investing you must save up the money to
do so unfortunately many people lock the money saving habits needed to accumulate
wealth which ultimately hinders their ability to invest if this sounds like
you don’t worry that’s what the cookie jar approach is for the cookie jar
approach works by making incremental contributions to a savings jar you can
start by putting away just 10 dollars per week that may not sound like much
but over the course of a year it amounts to more than $500 which is how much
you’ll need to start investing in the ideas I’m about to go over by
contributing to your cookie jar every single week you will start to build the
habit of saving which is crucial when striving to improve your financial
situation and hopefully finally reach financial independence someday in the
future now maybe you don’t want to leave physical cash flowing around your house
and that’s totally understandable the electronic equivalent of the cookie jar
is an online savings account that you maintain separately from your main
checking account the money stored in the savings account can be withdrawn in two
business days if you need it but it’s not linked to your debit card meaning
that you won’t be tempted to spend then when the stash is large enough you
can take it out and move it into some actual investment vehicles okay now that
you have the money to invest with here are five ways you can put that money to
work number one investing in real estate when most
people think of real estate investing they think of buying residential or
commercial properties and renting them out to tenants and while this is a great
way to make money it isn’t the only way you can invest in real estate there are
many options for real estate crowdfunding and though this may seem
like something you’d be nervous about looking into it actually can be an
intriguing investment for instance you can invest in a REIT or a real estate
investment trust and essentially it’s a company that owns or produces income
producing real estate you can think of a REIT as a mutual fund for real estate
investing and like a fund the way you own it is through buying stocks you see
when you own stock in a read you were in a share of the profit produced by that
real estate investment it’s a way to invest in real estate without the hassle
of being a property owner and every time profits are shared you will receive your
portion of the cash distributed and the best part was that there was no property
maintenance no dealing with tenants and know chasing rent payments required the
company fundrise allows individuals to invest in commercial real estate online
to an eread and the best part is that starter portfolios begin at as low as
$500 making the barrier to entry low enough for just about anyone to start
making money through real estate number two investing in low barrier mutual
funds mutual funds or investment securities that allow you to invest in a
portfolio stocks and bonds with a single transaction making them perfect for new
investors the trouble is many mutual fund
companies require higher minimum investments which isn’t going to work if
you are working with a thin budget luckily some mutual fund companies will
waive the account minimums if you agree to automatic monthly investments of
between fifty and a hundred dollars which will have by leveraging the cookie
jar approach the two main benefits of investing in mutual funds is the
diversification it provides and it’s hands-off nature you see when you
diversify your investment holdings you are allocating your money among various
financial instruments industries and other categories by doing this you are
investing in different areas that would each react differently to this
same event for instance if one stock you own declines what an election is called
another increases and you were offsetting your potential losses in fact
most investment professionals agree that although it does not guarantee against
losses diversification is the most important component of reaching long
term financial goals while minimizing risk moreover because mutual funds are
typically run by money managers you will have to exert little to no effort to
start your investing journey all you have to do is set up one time or regular
contributions to your investing account and the money manager will handle
selecting the funds that will hopefully grow your wealth number three investing
in Treasury bonds now many small investors begin their investment journey
with the US Treasury securities but that doesn’t mean you can’t
well investing in Treasury bills will not make you rich I believe that they
are an excellent introduction to investing and are a great place to park
your money until you are ready to go into higher risk investments Treasury
securities also known as savings bonds are easy to buy to the US Treasuries
bond portal Treasury Direct there you can buy fixed income US government
securities with maturities of anywhere from 30 days to 30 years in
denominations as low as $100 now like I said Treasury bills will not make you
rich as the current yield on US Treasury bonds is 1.5 percent but when you
consider that the average savings account only yields 0.09 percent this is
an exponentially better investment choice for any investor willing to part
with their money for a short or long period of time furthermore what a lot of
people don’t know is that you can even arrange to have your money deducted from
your pay and invested in these bonds on a regular basis making it a hassle-free
investing process number four investing in an employer retirement account now if
the previous investing options have an appeal to you don’t worry there are
other investment vehicles you can use to grow your wealth some of the most
commonly used investment vehicles include Roth IRAs and 401ks and if
you’re unfamiliar with them let me briefly explain how they work with the
Roth IRA your contributions are tax when they’re made so you can withdraw the
contributions and earnings tax-free once you reach age 59 and a half
this is important because whatever amount this account accrues to overtime
will be the exact amount you’ll have access to when you go to withdraw it and
similar to a traditional IRA a Roth IRA has an annual contribution limit of six
thousand dollars a year or seven thousand dollars for people age 50 or
older a 401 K on the other hand is a retirement plan that is offered by
employers which allows employees to realize tax advantages when used you see
normally when you earned money as an employee you have income taxes withheld
on the money you earn a 401 k plan allows you to avoid paying income taxes
in the current year on the amount of money that you put into the plan the
amount you put in is called a salary deferral contribution as you’ve chosen
to the first sum of the salary you earned today put it in the plan and save
it so you can spend it in your retirement years then upon retiring you
will draw up the amount of money you need to live from the plan which will
hopefully be at a lower tax rate then you would have incurred when working
allowing you to save tax overall once you have one or both of these funds set
up you then need to ask yourself how involved do you want to be in the
investing process if you want your involvement to start and end with a
deposit in your account then using a Robo advisor to manage your investment
portfolio is the way to go alternatively you can self manage your fund by
choosing these specific funds you want to invest in either way the main thing
is that you start letting your money work for you
number five paying off debt the least obvious and potentially most lucrative
way to invest your money is paying off debt
you see when most people fail to realize is that paying off debt is one of the
very best ways to lock it in an above-average and guaranteed rate of
return on your money this is especially true if the interest charge on your
credit card balance is in the double digits and more likely than not it is as
a 20-19 the average credit card interest rate is nineteen point two four percent
annually and no matter how wise of an investor you are I can guarantee that
you cannot secure that high of returns by placing your money in other
traditional investment vehicles one way to realize these returns quicker and
paint out here that faster is to leverage the power of debt consolidation
through a credit card consolidation long this technique involves moving all your
credit card debts onto a single debt that is subject to much lower interest
fees in fact you can make that balance
disappear even quicker if you capitalize on zero interest credit cards and pay
your owing amount before the zero rate promotion period ends by doing this you
are effectively paying down a double digit credit card balance with zero
interest charged meaning that all of your payments will go straight on to the
principal now if you’re one of the few people living without any credit card
debt do you have to miss out on this investing strategy not a chance if you
maintain any form of debt then you can use that debt as an investment tool for
instance the same principle can be applied to a student loan or a mortgage
however admittedly the returns will be far less than those realized on a credit
card balance but that’s not to say that they aren’t worthwhile investment
vehicles let’s say you decided to pay down your 4% mortgage with the investing
money you’ve been putting aside every month well it may be less lucrative than
paying down a high interest credit card this type of investment can still you
have multiple benefits first paying down your mortgage locks you into a steady
return that is much higher than some of the other investing alternatives I have
previously mentioned in this video such as US Treasury bonds moreover by paying
down your mortgage faster you will build more equity in your home which can be
drawn from and used to invest in equities that yield a higher rate than
your current mortgage and interest rate in short paying off debt is a
non-traditional way of investing however being able to lock in your return and
see your credit balance decline will not only improve your cash position but your
financial confidence as well thanks for watching if you want to go from the life
you have to the life you deserve then hit the subscribe button now

17 Comments

  • Reply Betterment Boss January 15, 2020 at 9:01 pm

    Comment below if you want to start making money by investing! Replying to all comments!

  • Reply Curiosity Unchained January 15, 2020 at 9:11 pm

    We like investing in REITS. They are really good money makers

  • Reply Passive Income Tom January 15, 2020 at 9:35 pm

    I have rentals and REITs. Both are great but if you can own real estate, you get tax benefits. ๐Ÿ˜‰

  • Reply Elias Sal January 15, 2020 at 9:53 pm

    Pin this.

  • Reply Felix Oby January 15, 2020 at 10:38 pm

    Thanks so much for this information… I wish it's easier here in Nigeria.

  • Reply BRIGHT MINDS January 16, 2020 at 12:17 am

    ADMIRE YOUR PAST, HUG YOUR PRESENT AND CHANGE YOUR FUTURE .

  • Reply Erika Kullberg: Lawyer's Finance Tips January 16, 2020 at 12:38 am

    Paying off your debt is huge. I had over $200,000 of student loans, and I really didn't feel like I could invest into the market until I paid that off. Especially if your interest rate is over 10%, it makes sense to put all your money towards the debt, since you can't typically guarantee 10%+ returns in the stock market (even though 2019 proved that wrong).

  • Reply a deli January 16, 2020 at 1:55 am

    Down to make more money! Thanks

  • Reply Adam Del Duca January 16, 2020 at 2:08 am

    Glad to see I can invest without being rich ๐Ÿ™‚

  • Reply Austin Payne January 16, 2020 at 3:58 am

    Thanks for the video, I had never heard about REIT

  • Reply Ace Hardy January 16, 2020 at 5:07 am

    ๐Ÿ’ฒ

  • Reply Eva Marรญa Sanz Herrero January 16, 2020 at 8:18 am

    I won't recommend Mutual Funds due to the fees they charge. You can use a broker to begin to invest in Index Funds though, (lower fees and better returns in the long term).

  • Reply Lee Daniels January 16, 2020 at 1:53 pm

    Great video,love the advice here!.

  • Reply INVESTING January 16, 2020 at 4:05 pm

    Great tips. I just came across your channel. Interesting that you talked about investing in Real Estate with little cash. I just did a video whereby people can invest in vacant land. I'll be subscribing to your channel. ๐Ÿ˜€๐Ÿ‘

  • Reply G Mell Talk January 16, 2020 at 6:56 pm

    You can start investing in stocks with $5 to $10

  • Reply Azzo Squirrel January 17, 2020 at 7:30 am

    Good solid advise, and really cool animation !

  • Reply Sandra Young January 19, 2020 at 2:19 am

    I'm currently working on the cookie jar,juice jug.We are on the same page

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