Lets discuss Investing For Beginners, On average the government prints $6 billion per year, which relates to an average of 3% inflation. This means the money you have saved currently is worth 3% less every year. If you have the mindset of just saving your money, keeping it in your bank account, and letting it grow, your money is bleeding without you even knowing it. Since inflation is around 3% a year, the money you put in your bank account is worth 3% less every single year without you even spending it. This 3% number is actually only getting bigger and bigger. If we go back to, say, 2022, the government printed a ton of money. The inflation rate was 9.1%. If you put $100 in your bank account that year and just kept it there, it would actually be worth only $90 the next year. I know it’s pretty scary.
That’s exactly why, instead of just saving your money, you need to have that money working for you and invest it instead. If you have only $100 and are wondering how you can grow it to $1, 000, $10,000, or even $ 100,000, I’ll be sharing my best techniques I use to invest. But here’s the thing: the risk of the investments is only going to increase. Just remember, as the risk goes up, so does the potential reward. I’ll even put my own money where my mouth is and invest $100 in everything. The first and probably easiest way to invest your money is in a high-yield savings account. Now, look, a normal bank account basically pays you nothing. The average bank account pays you around 0.01% a year, which is basically a penny. A high-yield savings account pays you literally for just keeping your money there. American Express offers 3.2% annual returns, meaning you get 3.2% every year on whatever you deposit. You don’t need any skill or trading experience; it just sits there and grows by itself. By doing this one simple thing, you are now stopping your money from bleeding every year due to inflation. If you follow this one and only step, you will already be beating the inflation problem. It’s also probably one of the safest investment options, too, with a risk level of one. If you choose a high-yield savings account with a major bank, do your own research, but most likely that bank will be what’s called FDIC insured. This means that if you have $250,000 or less in that bank account and the bank goes out of business for whatever reason, the government will insure up to $250,000. So yes, it’s a pretty safe option. It’s not going to make you rich; that’s not the point. The point is to just stop the bleeding. The profits will get higher and higher. Now, you might be sitting there thinking, how does the bank make money if they are paying you 3.2% every year for depositing money into their bank? The answer is bonds. A bond is basically just a loan to a government. You pay the government upfront, and they give you a percentage in return later. What a lot of banks do is take the money you deposited, put it in U.S. bonds, which pay a bigger percentage than what they are paying you, and just keep the difference. A one-year U.S. Treasury bond pays 3.79%. If you remember, American Express pays you 3.2%. So yes, that’s how they make money. Just like the banks, you too can invest in bonds. There are many bonds to choose from, including bonds for different countries, bonds for companies, and bonds for states, among others. All of them pay different percentages, and all of them have different risk levels. I recommend just doing U.S. Treasury bonds, as they are one of the safest options. I would also put this type of investing at a risk level of one. You are technically making more money with these than a high-yield savings account. However, it does come with a slight drawback. Unlike a high-yield savings account, where you can withdraw your money whenever you want, a bond has a maturity date. You can choose 3 months, 6 months, 1 year, 2 years, and and so on. This means that if you invest in a 3-month Treasury bond, you cannot touch that money for 3 months. But at the end of those 3 months, you can withdraw it, and you will receive a higher percentage than you would with a high-yield savings account. The majority of millionaires and billionaires own bonds because of how safe they are. A really good goal to have in life is to acquire $5 million. Because if you have $5 million and just invest it all in U.S. Treasury bonds, you would earn $190,000 every single year for doing absolutely nothing. And it’s not like the stock market, where you have a chance to lose that money. Bonds are basically risk-free. So yeah, that’s how the rich stay rich. I invest in bonds, and I’d highly recommend you do too. Gold. If you haven’t been living under a rock for the past 10 years, you’ve definitely heard about gold. And there’s a reason for that. Unlike money, where the government can just print more of it and it loses value, gold is a natural resource, meaning there’s a limited supply of it. If you invested $100 in gold in the year 2000, that $100 would now be worth $1,200 today. Before the dollar became prominent, we actually used gold as currency. It’s a pretty safe way to invest your money, putting it at a three out of 10 on the risk scale. The only real risk with gold is opportunity cost, meaning if you invest your money in gold that means you can’t invest that money elsewhere, where it might have higher returns. The only time you should be investing in gold is if you think the economy is going to do poorly in the near future. Gold performs best when economies are in trouble. So, if stocks are going down, usually gold is going up. If stocks are doing well, usually gold is doing poorly . Gold is good if you want a way to hedge against the market, meaning you want a way to protect yourself just in case the economy goes bad. I wouldn’t recommend going all in on gold, but it’s always nice to have a percentage set aside just to hedge against the market in case things go south. There are two ways to invest in gold. One, you can go to your local gold shop and buy physical gold, like a gold bar or necklace, but I wouldn’t recommend this, as usually these store owners raise the prices so they can make a profit, so you technically aren’t getting your full value for what you purchase. The second way is investing in gold ETF.
Index funds
Index funds are one of my personal favorites to recommend to beginner investors because you don’t need a lot of skill to do it, and the average gains are still extremely high. An index fund is basically a fund that includes the largest companies in the United States, like Apple, Facebook, Microsoft, and so on. You are essentially investing, say, $100, and that $100 gets divided up and is put into each one of these companies. Overall, the risk is pretty low because you aren’t putting all of your eggs in one basket. Because even if one of the companies ends up doing poorly , the ones that do well will average out the losers. The average returns of an index fund are around 10% a year. I’m going to put index funds at a risk level of four. The trick is that you need to think long-term with index funds. Let me blow your mind real quick. If you were 20 years old right now and invested just $27 every single day into an index fund until you are 60 years old, based on average gains, you would have $4.6 million. $27 a day for 40 years, doing absolutely no work at all, you would have $4.6 million by the time you retire. That is the power of index funds. The good thing about this is that you don’t need any experience with the stock market. The trick is you’re not trying to time the market and find perfect entries, but you just invest a little amount every single day, no matter if the stock market is going up or down, and just forget that money even existed. Don’t even look at that money until you retire. If you invest enough and are patient enough, you could easily become a millionaire with very little risk and practically no work at all. All you need to do is find an index fund with low fees. Now, we are starting to get into the realm of a little more risk, but the returns are becoming really, really good.
ETFs, Investing For Beginners
Now, technically , index funds are ETFs, but I’m talking about more specific categories. There are ETFs for literally everything tech, copper, real estate, literally everything. ETFs are usually much safer than picking a single stock because, again, you are diversifying across multiple companies. If you do it right, you can make a lot of money if you pick the right ETF. But we really haven’t needed much skill in investing with all the previous examples. At this specific point, you need some sort of knowledge or investing experience. When choosing ETFs, you can definitely choose winners, but you can also choose losers. I like to have the same long-term mindset with these as well. Just think of a category in the stock market that you believe will do very well in the next 10 years. This is when the skill starts coming into play. Again, we aren’t trying to time the market with this and find the perfect bottom. All we do is invest a small amount every single day into a category that we think will do well in the next 10 years. One example could be quantum computing. Now, look, quantum computing is improving by the day. In my eyes, it’s only going to get better. I personally think it’s going to be a significant part of our future. Is this investing advice? No. I’m just using it as an example of what I’m personally investing in. Instead of picking one quantum computing company and betting on just that one, which is very risky, I can invest in a quantum computing ETF that divides my money among multiple quantum computing companies. For this, I personally like the ETF called QTUM. QTUM has 88 quantum computing companies within it. So now, when I invest in this ETF, my money gets divided among all 88 companies. Instead of buying ETFs or categories of the stock market, we are now using much more skill in choosing individual stocks. There’s a certain amount of risk that comes with buying individual stocks because, while you can choose good ones, you can definitely choose bad ones too. I would rate it a 6.5 on the risk scale. However, if you pick companies well, it has the potential to earn you a ton of money. For example, the company SanDisk has been skyrocketing recently; it ‘s up 3,700 % in a year. That’s insane. To put that in perspective, if you invested just $25,000 last year in SanDisk , went to the beach, forgot about it, and did absolutely nothing, that $25,000 would be worth $1 million today – in just a year. That’s incredible. Buying individual stocks has a place in my heart because, for me personally, this type of investing has performed the best in growing my wealth. Last month, in April, I had one of my highest-performing months in my trading career. I made $247,000 in April by trading individual stocks, with one of my highest-performing stocks being AMD. I’m not saying this to brag or show off my wealth; I’m sharing this to illustrate the possibilities and why you should start taking this trading seriously. If you decide that you want to take this seriously, I actually have a private Discord where I share all of my trades in real time : exactly what plays I’m getting into, when I’m entering, when I’m exiting, and the reasoning for why I entered the trade in the first place. I shared every single trade I made, such as my AMD trade, Nvidia trade, and QBTS trade, along with all other trades I made to achieve that $247,000. If you’re interested in joining, I’ll put a link in the pinned comments. Trading individual stocks can be a great investment if done correctly. If I had to pick a stock that would perform well in the next seven years, I’d like to believe it would be Amazon. Companies like Amazon will only benefit from the AI boom. They will no longer face labor strikes because they will have robots moving all the boxes. They will have autonomous cars doing their shipping. Overall, they will become much more efficient over the next seven years, in my opinion. Less money on employees and more money into efficiency just my opinion, not investing advice.
Crypto
If you invested $25,000 in Bitcoin 10 years ago, do you know how much that would be worth today? $4 million. I’m going to rate crypto at an 8.5 on the risk scale. Major companies like Microsoft had actual board meetings about whether or not to invest in crypto. Sadly, Microsoft’s board specifically decided not to do it because of how risky it is. But with more risk comes more reward. There have been plenty of crypto coins that have gone up 10,000% or more. I know many people who have made millions in crypto, but crypto is much riskier compared to stocks due to volatility. When crypto goes up or drops, it does so very quickly . Honestly, if you trade the major crypto coins like Bitcoin or Ethereum, the risk is a bit lower because those coins are likely to stick around in the future. But risk increases when you invest in altcoins like Bartcoin or Dogecoin. These coins have the potential for higher returns if they perform well , but the risk becomes significant because most of these altcoins do not last very long. They don’t just drop 10 or 20% they usually go all the way down to zero. At that point, you’re basically gambling. However, if you have a bit of luck and some skill, the potential to make a lot of money is definitely there. These are my favorite ways of investing. for more details you can visit.
One of my favorite quotes is, “If you don’t have your money working for you, you will be working the rest of your life. It’s that no matter whether it’s high yield savings account, index funds, stocks, you need to have your money working for you. And if there’s only one piece of advice I could give, it would be start today and not tomorrow.
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