MASTERCLASS: How To Go From $0 To Millionaire - Investing For Beginners

"let's assume that you can put aside $10 a day which is right around $300 a month if you take this $10 a day $300 a month and you keep investing it every single month I'll talk about where and how to invest it in just a little bit but let's assume that you can get a 7% annual return on your money on average so this is a below average return okay something the conservative but if you keep investing the $300 a month over the next 45 years so if you do this from 21 to 66 the $300 a month is going to grow to $1.1 million on the side"

"let's have some fun what if you can be even more aggressive and you can put aside $100 a day which is right around let's say $33,000 a month if you can do that and you can maintain the same below average return and over your lifetime you will be able to grow your money to 11 million Dollar on the side"

"between 1926 and 2018 the average return for the S&P 500 which is an index in the stock market which all it means is it's a group that represents the top 500 companies in the stock market this S&P 500 over those years grew by an average of 10 to 11% a year on average"

"if the stock market continues to grow at its previous rates and they can just invest your money and even get a below average return Then retiring a millionaire is no problem because you can just throw your money into the stock market and hopefully get the same returns and boom there you have it the status"

"my investment goal is on a lowend 7% but typically I'm looking for an 8% annual return on my money so if I invest $100 today I want to get $8 back next year and the year after that and on and on and on so these are the type of returns that I'm looking for when I invest my money in real estate"

"if you want to save your first $100,000 you don't need to live like you're broke and only eat rice and beans for the rest of your life but there are five things that you need to do when you get paid in this order that way you can save that $100,000 sooner rather than later The first thing that I want you to do is to create three separate bank accounts"

"a simple place to start is something like my 75 15 10 plan which says that for now on for every dollar that you earn 75 cents is the maximum you can spend 15 cents is the minimum that you invest and 10 cents is the minimum that you save"

"The average stock market return is 7 to 10% a year Why are you trying to invest your money in the stock market and get a 7 to 10% return a year when you could get a 15 to 25% return by paying down your credit card debt"

"how can I take this pie and make it bigger how can I go from $45,000 a year to $450,000 a year because now when you take the same slice out of this pie now we're talking about way more dollars you might be going from $10,000 a year that you're putting aside towards your Investments and your savings to $100,000 a year it's the same ratio but the difference is this is way more dollars"

"the four factors that you want to be paying attention to when you're looking at a good location is the crime in the area the population and population growth businesses moving in or out and the walkability of the area"

"let's assume for the purposes of this video that you can buy this property right here for $100,000 and this property is going to rent out for let's just say $1,100 a month and you have $500 a month worth of expenses so you go through the same analysis that I just showed you which leaves you with $600 a month of projected na projected profit now I'm going to take this $600 of monthly profit multiply by 12 which means that I'm going to have $7,200 of annual noi net operating income or profit now I'm going to take the $7,200 of annual profit noi I'm going to divide it by $100,000 which is the total price of the property which gives me a 7.2% return for me that is a good deal I look for anything more than 7% here"

"if in this case you were to put down 20% that would be $20,000 so now you put down $20,000 that's your equity and you're going to be borrowing the other $80,000 and if you borrow the other $80,000 at say 7.5% interest that means now your interest rate is going to be costing you $560 a month which means you have a $40 a month profit now which $40 a month time 12 is $480 so $480 is your new profit now the way that you're going to calculate your return now is you take your $480 that you're making in profit and you're going to divide that by your equity which is $220,000 here now it's about a 25% return on your money when you factor in debt"

"as soon as you enter into a contract to buy a property there's going to be five people that you want to call one of them is not listed here this person is whoever is going to be helping you finance the property whether it's a bank whether it's investors you want to call them to make sure you can get the cash but that's not really going to be a due diligence the due diligence is going to be working with four people one is your property inspector one is your property contractor one is your property manager and fourth is the city"

"I made this mistake and it ended up biting me in the asset so please don't make the same mistake that I did and get these inspections before you close on the property"

"for me the bulk of my stock market portfolio especially my passive portfolio is for cash flow because for me I like cash flow cash flow funds the guac flow because when I have this type of cash flow well now I have Investments that are paying me every single quarter and every 3 months I get more money deposited into my investment account"

"if you wanted to invest in the S&P 500 then you have a couple ways to do that you have spy and vo both of these are two different ETFs that both give you exposure to the S&P 500"

"if you wanted to invest in the NASDAQ which has a lot of exposure to tech companies then you can look into the QQQ ETF if you wanted to invest in the Dow Jones you have Dia"

"if you wanted to invest in just value companies well Vanguard has an ETF for that it's called vtv if you wanted to invest in Emerging Markets these are countries and companies or overseas that don't rely on the dollar that are working to grow this is vwo"

"and if you want to invest your money into dividend paying ETFs this is an ETF that invests in high dividend paying companies then you can look at something like SD"

"the expense ratio is the fee that you're going to have to pay for investing your money into a fund whether it's an index fund or an ETF or a mutual fund all them are going to have a fee and the fee is called the expense ratio and this is very easy to find you can go to Yahoo finance to find this Seeking Alpha you can go to the actual investment institution that's issuing the fund you just have to look at what the expense ratio is and what you'll see is that this expense ratio is the fee that you're going to pay every single year for investing your money into this fund"

"if you have a 1% fee you're not going to end up with a million dollars you're going to end up with right around $750,000 because a small little 1% fee isn't just a 1% fee you pay once it's a 1% fee you pay on every dollar that you invest which means you have less money invested and then every dollar that your dollar grows to each and every year"

"The way you can actually succeed as this type of passive investor is you want this to be as passive and automatic as possible meaning every week or every two weeks or every month you pick your own interval but every so often money is automatically going to be invested and this does not change it doesn't matter if the Market's up or down you do this for a number of years if not decades"

"personally I use something called M1 Finance I have been sponsored by M1 Finance in the past they are an affiliate for minority mindset meaning if you use any of my affiliate links for them we will get compensated but I want you to do your own due diligence because it's just what I like I want you to find the best app for you"

"for me every Wednesday I have cash that leaves my check-in account and it's automatically invested into my portfolio of ETFs the reason why I do Wednesday is not any sort of secret sauce or anything I used to do Monday or Friday but the problem was that was when the federal holidays would fall and so there was a number of weeks where I just wouldn't get money invested because there would be a Federal holiday so I decided to put it in the middle of the week that way the federal holidays don't really affect my investing schedule"

"for me I like it every week just because it's more often so I get a better dollar cost average because of that"

"the only time you would change it is if something's wrong with the investment institution that your ETF is with or if something is wrong with the ETFs that you invested in if you feel like you shouldn't have invested in those ETFs and you want to change it because of that that would be the reasons why you change it you shouldn't be changing or selling out of your ETFs just because we're going through an economic slowdown"

"you have to remember what your goal is as an investor because that's going to help guide your investment decisions and your goal can generally be I want growth with my money meaning I want to see the value of investment go up or I want cash flow or a hybrid of these two"

"I take this noi number this monthly noi multiply by 12 so now you have an annual noi number this is how much profit you expect to make again if you're using debt we'll talk about that in just a second but this is how much profit you expect the property to make over the year and then you divide that by the price of the property and this will give you something called the cap rate or the return on your property and if that number is high enough well then that's a good deal for you if it's if it's not high enough then you want to keep looking"