Do This When You Get $5,000 To Build Wealth (Step-by-Step)
Published: 2025-01-29
Status:
Available
|
Analyzed
Published: 2025-01-29
Status:
Available
|
Analyzed
Predictions from this Video
Incorrect: 0
Prediction
Topic
Status
Successful businesses require both a product and customers to generate revenue and achieve success.
"The way that successful businesses work in fact every business the way that it works is you have two entities you have the product and you have the customer this is your product this is how you make your money but if you want to actually make the money you got to have the customers and you need the customers to actually make this into a successful business"
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A tiered approach to business education is recommended, starting with free resources like YouTube, then moving to books, and finally paid courses.
"start with Youtube Learning because it's free then graduate to books which cost about $20 per book and then graduate to courses"
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To succeed in business, one must learn both how to build a good product and how to market it effectively.
"the first type of field of learning is understanding how to be good at this if you want to start an apparel company learn how to manufacture the apparel learn what makes a good apparel company learn how to build a good product so there's the product side of the knowledge but then there's the marketing side and you have to know how to do both"
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Digital marketing, SEO, and PR can be learned initially through free resources on YouTube.
"start with what's free learn how to do digital marketing learn how to do SEO learn how to do PR learn how to do all that type of marketing with what you see for free on YouTube"
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Reading approximately 20 books at $20 each, totaling $400, is recommended for elevating knowledge.
"you'll want to read about 20 books and if each book is about $20 bucks allocate about $400 just to reading books to now continue to elevate your knowledge"
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Allocate around $500 for legal services to establish the proper business entity and handle basic contracts.
"allocate about $500 towards legal as you get started get an attorney have them create the proper entity for you have them do some basic contractual stuff for you"
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Passive growth strategies involve investing money into the stock or real estate markets.
"taking that money and then slowly putting it into the stock Market or into the real estate market"
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Real estate investment with $5,000 can be achieved through crowdfunded or syndicated deals, investing in external real estate funds.
"investing your money into crowdfunded real estate deals or into other Syndicate deals where you're taking your money and putting it into somebody else's real estate fund"
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A 10% annual return is considered a good benchmark for passive investments.
"a good return is generally considered to be around 10% a year"
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Consistent monthly investments over 10-40 years in stocks or real estate are key to long-term wealth building.
"the way that you win here whether you're investing in stocks or real estate is you can take that money and you're can it and then you're going to keep consistently investing that money so maybe you invest $500 a month every month for the next 10 20 30 40 years"
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The stock and real estate markets have historically experienced crashes, recessions, and bear markets.
"we have seen stock market crashes and realistic crashes in the past we have seen 16 recessions in the last century and we've seen about 25 bare markets meaning Market crashes in the last century"
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The stock market is accessible, easy to withdraw funds from, and can be started with minimal capital, even via smartphone.
"the advantage of the stock market is you don't need a lot of money to start it is very easy to pull your money out and it's very accessible because anybody can do this right off of their phone"
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Investments in real estate, even through crowdfunding, are less liquid and funds are typically tied up for 3-10 years.
"with real estate it's different your money is less liquid even if you use a crowdfunding tool once you invest your money is generally tied up for 3 5 seven or 10 years"
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The stock market allows for automated investing through a 'set it and forget it' system, with investments made weekly or monthly.
"you can automate the whole process where you can find a brokerage and now create a set it and forget it system where you're just going to invest every week or every two weeks every month"
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Profitable companies like McDonald's can use their excess cash for emergencies, reinvestment, or to distribute to shareholders as dividends or through stock buybacks.
"McDonald's makes billions of dollars of profit they have this extra billions of dollars in their bank account at the end of the year and they can do three things with that cash they can save that money for an emergency they can use that money to reinvest into the company or they can take that money and give it away way to the shareholders"
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Companies can return cash to shareholders through stock buybacks, which increase stock price, or through dividends, which are direct payments.
"the first way is by doing what's called a stock buyback that's where they take that money and they dump it back into their own stock to make the stock price go up ... The other way that a company can give this money away is to just write you a check this is what a dividend is"
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For new investors, reinvesting dividends to buy more shares of the company is often more beneficial than withdrawing the cash.
"you can take the money and automatically invest it to buy more shares of that company and it depends on where you are in your investing career if you're just getting started it's probably more valuable for you to keep reinvesting that money"
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True wealth is achieved when dividend income is sufficient to cover living expenses, such as mortgage and rent.
"if you have enough dividend income coming in that you can use this dividend income to pay your mortgage to pay your rent to pay for your lifestyle well now just have it deposited into your brokerage account and that's the money you live off of see that's what really wealth is"
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Consistent long-term investment of money, starting with $5,000 as seed capital, is crucial for wealth building.
"the key is using that $5,000 as seed Capital maybe start slowly dripping that money in there but the key is to keep consistently investing your money and investing your money for the long term that's where the wealth is built"
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The economy is predicted to change in 2025, offering overlooked investment opportunities.
"our economy is going to change in 2025 and in this video I want to show you how you can find the investment opportunities that most people are overlooking"
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President-elect Trump's upcoming term in January is expected to bring significant changes to government and economic policy.
"take a look president-elect Trump is entering the White House in January and he wants to make some sweeping changes to our government and economic policy"
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