HOW TO INVEST $1,000 💸 6 Ways To Invest Your First 1000 Dollars! #Best Education Page #Online Earning

- How's it going today, guys?

Today, we're gonna be talking about

how to invest your first $1,000.

You have $1,000.

You've decided you don't want to spend this money,

and instead, you would like to invest that money,

and let it grow into more money in the future.

First of all, I would like to applaud you

for making this decision.

I can remember a time when I thought that

saving $1,000 would be impossible.

In fact, I can remember when my dad

first showed me a hundred dollar bill,

I was about eight years old,

and I asked him if I could have one of those someday,

if I could possibly earn one.

He said, if I worked hard,

I could have $100.

You have $1,000.

I'm sure you've worked very hard to save it up,

and you're ready to put that money to work.

I know that my first job that I ever had

was pushing grocery carts at a grocery store,

and I made $7.30 an hour.

It would've taken me about 140 hours

to save up $1,000, and that's before

taxes were even taken out,

so you have possibly spent hundreds of hours

accumulating this thousand dollars,

and I want to encourage you

not to waste it on a gamble.

I want you to invest it in something

that is going to benefit your future,

or invest in something that is

going to likely appreciate in value.

Now, before I get into this video,

it is a Monday, after all,

and we're giving away a free membership to Stock Radar.

That is my weekly stock analysis membership site,

which is also becoming an educational platform as well.

I'm adding many different courses,

and the course on technical stock analysis

is coming out this week as well.

The winner of this is Intelligent Money Investing,

who commented, "#stockradar," on one of my YouTube videos,

and so you've won a lifetime membership to Stock Radar.

If you guys want to enter this weekly giveaway,

all the details are in the description below,

and there are five different ways

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The very first thing we have to talk about

before we consider investing $1,000 into anything is,

what is your current financial situation like?

Because like we already said,

abut 78% of Americans out there are in debt,

and it's possible that you have $1,000 in cash

or $1,000 in the bank, but maybe

you still have debt that you need to pay off.

I know you're eager to invest your money.

You're eager to put your money to work,

and start earning interest,

and start getting ahead, but you can't really get

too far ahead if your feet are stuck in the mud.

What I mean by that is, do you currently have any debt?

If so, what is the interest rate of that debt

that you currently have?

Over the past 100 years, on average,

the stock market has returned about eight to 10%,

and we're gonna use 8% as a conservative figure.

That's what it's returned on average per year

over a very long span of time.

Now, if you know anything about the stock market,

you know you're not gonna get a guaranteed

8% return every single year,

but that's the average rate of return

you could expect to receive.

If you have any debt right now

that exceeds 8% interest,

it actually makes sense to pay off that debt

before you begin investing in the stock market.

Let's say, for example's sake,

that you have $1,000 invested in the stock market,

earning you an 8% return,

but you also have $1,000 on a credit card,

and you're paying 25% interest on that debt.

That $1,000 stock market investment

would earn you $80 over that year.

Meanwhile, you would be paying your credit card company

$250 in interest, so you're actually

not getting ahead here by investing in the stock market,

and it would make more sense

to pay off your high interest debt first.

If you've taken stock of your current financial situation,

and you find that you have high interest debt,

you need to pay that off

before you start investing in the stock market,

or investing in anything out there

just due to the fact that you're not going to get

a return that's going to likely exceed

what you're paying in debt.

It's gonna make a lot more sense

to pay off your debt first

before you begin investing,

and start off debt free before you start

putting money into the market.

One question you might have is,

what if you have a car payment,

or what if you have a mortgage on your home?

Let's say that interest rate is around 4%.

Well, if you can earn about 8% in the market,

and you're paying 4% to borrow that money,

you're still making a 4% return

by investing that money in the stock market,

so in that situation, it would actually make sense

to invest while having low interest debt.

I'm not saying you have to be completely debt-free.

You may decide to do that, but I am saying that

you should pay off your high interest debt

before you begin investing in the stock market.

The second thing I want to discuss here is

why people end up going into debt.

Do we just wake up one day,

and decide that we want to put $3,000

on a 25% interest credit card?

My guess is absolutely not.

This usually happens during a time

when we're in a crisis mode.

Maybe you can't afford your groceries

or your utility bill, or you need to buy new clothes,

and it's a necessity.

Usually, this happens out of necessity,

and not out of want or need.

Now, if you are going into debt

due to wants and needs, then you really need

to think about what is more important to you,

that short term gratification,

or the long term gratification of investing?

The fact that you're watching this video

tells me that you at least have some interest

in investing for your future,

and you really need to think about

what's gonna be more important for you,

that brand new handbag or brand new pair of jeans,

or investing in saving money,

and building wealth for yourself for the future.

After you pay off your high interest debt,

the very next thing that you want to do

is prevent the need for debt in the future,

and that is by putting together a cash cushion.

This amount is gonna be different for everyone.

For me, it's $10,000.

I always keep $10,000 of liquidity

in my checking account no matter what

because I don't ever want to be

in a situation where I'm gonna go into debt

or have to pay interest to somebody else out there.

This all depends on what your cost of living is

and how much money you're spending each month.

What I recommend is having enough money on hand

to cover all of your expenses for three to six months.

Put yourself in this situation.

You lose all of your sources of income tomorrow.

How long would you be able to sustain yourself?

If that answer is one week,

if that answer is one day,

then you need to put together a cash cushion

to prevent the need for going into debt in the future.

This is a mistake that I made myself.

I used to invest all of my money into the market.

I used to keep $1,000 in checking.

I can remember a situation where

I ended up having to pay for a car repair.

Out of nowhere, I had to spend $2,000 fixing my car.

I had $700 in checking,

so I had to sell some of my stock market investments,

and luckily, I didn't lose any money,

but if I was in a situation

where my stock market investments were down,

and I had to sell at a loss

in order to get that money to pay for my car repair,

I would not be in a good situation.

Now that we've covered the two most important parts here,

which is paying off your high interest debt

and building a cash cushion,

let's actually talk about how you can invest

and put your money to work.

The very first thing I want to discuss

is investing in individual stocks,

or buying stocks of companies.

Now, how do you pick a stock out there?

How do you find out what stock to invest in?

Well, I have hundreds of different videos

on my YouTube channel.

I have a free course on how to find a great investment.

I'll link that up in the description below

if you guys want to check that out,

but what I recommend to you is, keep it simple.

Think about investors like Warren Buffett.

They invest in very simple businesses

that they actually understand.

You don't hear about Warren Buffett

investing in biotechnology companies,

or the brand new hot tech IPOs.

He invests in well-established financially stable companies,

and I encourage you to do the same

as a beginner in the stock market.

What I would recommend is picking one to two

different companies out there that you truly believe in,

that you want to get behind,

that you want to be a part owner of,

and buy some shares of those companies.

As far as how to buy stocks,

again, I cover all of this on my channel here.

I have countless videos about investing

in the stock market, and that is what I do.

I'm an individual stock owner.

Now, why do I recommend just investing

in maybe one or two companies?

It is because I don't want you to spread yourself too thin.

I have a private stock market investing group that,

I work with people, and I talk with people

about their investments, and I've had

a couple of students approach me

and tell me they're investing in 50, 60,

70 different companies, and that is just

way more than anyone could keep track of.

Companies are going to be reporting

their quarterly earnings four times a year.

They also release their annual reports.

Imagine if you're trying to keep up

on the earnings reports of 50 different companies.

That means you're gonna have to be reading

200 different earning reports each year,

and listening in on these earnings calls.

If you're not doing these things,

you're not really being a good investor

because you're not keeping track of your investments.

If you decide to invest in a company,

you should stay on top of things.

You should listen to the quarterly earnings calls.

You should read the annual reports.

If you're investing in 50 or 60 different companies,

it's gonna be more than you can likely keep track of.

I would say pick one or two companies,

businesses you can easily understand,

your favorite companies out there,

and be a proud investor of that company,

and spend a lot of time learning about that company,

and continuing to keep track of their progress

by keeping track of earnings reports,

and reading annual reports,

and doing things like that.

The next way you could decide to invest $1,000,

and I certainly don't recommend this,

but I do want to cover it, is,

you can make a speculation.

A speculation is kind of like a gamble.

It's kind of like rolling the dice.

It's investing in something that

you don't really know a lot about,

nobody really knows a lot about it

because it's something that's brand new,

but you see a high potential return from this investment.

In 2017, this was cryptocurrencies,

this was a lot of these ICOs or initial coin offerings,

but if you're looking at the stock market,

this could be investing in a penny stock,

this could be investing in a stock

that just recently went public.

If you're looking to invest your money

and not have a lot of risk with what you're investing in,

you're going to want to invest in something

that people have been investing in for decades,

and making a return from their money.

If this is blue chip stocks,

you know that people have been

making money with these for decades.

How long have people been making

money on cryptocurrencies for?

A much shorter amount of time.

When you're speculating, you have to understand

that you could potentially lose everything.

I do understand that some people out there,

especially young people, have a massive amount

of risk tolerance, and they're not afraid

of losing all of that money.

They would rather have the chance

of making 1,000% return and losing everything

than getting an 8% return on their money per year.

I just want you to understand that,

if you do make a speculation,

you should be willing to lose 100% of that money.

If you woke up tomorrow,

and your $1,000 investment turned into $30,

or it went to zero, you can't beat yourself up

because you knew this going in,

you knew you were making a speculation,

and there was always a chance that you could be wrong.

If you're a young person, and you want to speculate,

I'm not gonna discourage you from doing this

because you're either going to be right,

or it's going to be a very good lesson for you,

and you're gonna learn a lot from the experience.

I don't discourage you guys from doing this,

but you certainly don't have to.

The next way you can invest $1,000

is to invest in an index fund.

A lot of people don't know what these are,

but it's very simple to understand.

Basically, what an index fund is,

it's a pool of different stocks

or a pool of different investments.

We're going to be using a Vanguard index fund

called the Vanguard 500, or the VOO fund,

for an example in this video.

It's an investment people have been buying for years.

People have been making money with this for years.

This is something I can really get behind

and recommend to somebody who's looking

to begin investing in the stock market.

If you're not interested in buying individual stocks,

or researching investments,

or keeping track of stocks, another great option

is to just own the entire market.

This can be done by buying low fee index funds,

and one of the best ways to do this

is to buy Vanguard index funds.

The way that you buy this would be

through an ETF or an exchange traded fund.

What that means is you're buying shares of this fund

as you would a stock on the stock market.

Just like a stock has a stock symbol,

like Amazon has the symbol AMZN,

you can buy shares of the Vanguard 500 Fund

under the symbol VOO.

The Vanguard 500 Fund replicates

as closely as possible the performance

of the S&P 500, and the S&P 500 is

the 500 largest publicly-traded companies

in the United States.

If you wanted to invest in

the 500 largest companies out there,

you can do so by buying shares of VOO,

or the Vanguard 500 Fund.

The idea behind this is, rather than

trying to pick the winners out there,

trying to pick what stock will perform the best,

one of the best strategies out there

is just to invest in the whole market,

and be involved in the entire race.

One of my favorite examples here as an analogy

is to look at horse racing.

Are you trying to bet on the outcome of this race,

and pick which horse is going to win?

Or would you rather bet on the entire race,

and make money if all the horses do well?

That is the difference between investing

in individual stocks and investing in the entire market.

It's like picking a winning horse,

or being able to make money

when all of the horses do well.

The final way that you can invest $1,000,

and it's one that people don't often talk about,

but it's investing $1,000 in yourself.

This is gonna be different for everyone.

Maybe it's investing in a business,

or investing in something that will allow you

to make more money.

I'm gonna use myself as an example.

When I was working a nine to five job,

and for those of you that don't know,

I'm now a full-time YouTuber,

I educate people and make videos like this,

but I used to work a nine to five job,

and I got this idea for a YouTube channel,

and I decided to try it out.

I decided to buy a camera, to buy a whiteboard.

It cost me about $1,000 to make that investment in myself

and start making videos online.

I've now created a six-figure income online.

I make over six figures from this YouTube channel

and my different businesses associated with it,

so if you think about the return on investment

of that $1,000, that's a crazy return on investment

over the course of just about a year and a half.

You're always going to get the best ROI

by investing in yourself.

If there's anything you want to do out there,

if you want to pursue some kind of education,

or you want to take some kind of course online,

and start a business, or you want to start

a YouTube channel, or a blog,

or do anything like that, I'm always going to encourage you

to do that first before you invest

in something outside of yourself.

You're always going to get the best return

on your investment by investing in something

outside of yourself, and if you're somebody

who does not want to invest in yourself,

that is when you would consider investing

in something outside of yourself

like individual stocks, or index funds,

or maybe you want to make a speculation.

If you're interested in learning more

about investing in yourself,

jump over to my Facebook page

because I put together a resource there

on my top four favorite ways to invest $1,000 in yourself.

I'm gonna link that up in the description below,

and I'll also leave a pinned comment

so you guys can check that out.

Anyways, guys, that's gonna wrap up this video.

This is the best ways to invest $1,000.

I know you've spent a lot of time

saving up this money, and I just want to encourage you

to really be patient when deciding

what to invest in.

It's a lot of money, and for most people,

they don't even have $1,000.

Make sure you're putting it into something

that's valuable, that's going to be

a good learning lesson for you,

or something that's going to appreciate in value,

or invest that money in yourself,

and allow yourself to make more money going forward.

I thank you guys so much for watching this video.

If you enjoyed it, please drop a like,

and if this is your first time seeing my face here,

make sure you subscribe and hit that bell for notifications.

Like I said, I do have a lot of free resources

available to you guys.

I have a free course on how to find a great investment

all about finding good investments in the stock market.

I have that free resource on my Facebook page,

the top four ways to invest $1,000 in yourself.

Make sure you guys check those out if you're interested.

Thank you very much for watching this video,

and I hope you have a great rest of your day.

If you are interested in learning more

about investing in the stock market,

I've created a free course just for you.

The link is in the description below.

Here are a few other videos

you might enjoy as well.

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