hey there Tiffany Thomas with wealthy Tiffany dot com and in today's video we're
gonna be talking about investing for beginners during crazy time so while the
stock market is coming down crashing possibly and the Fed is dropping rates
and people are being quarantined and people are being told to work from home
and stores are closing restaurants are closing all different crazy things so I
really feel like this is an important topic right now because of what is going
on in the world and my heart goes out to all of those that have been affected by
this in any sort of way so during all of this craziness if you are wondering what
you should be doing especially with your money right now that's what we're going
to talk about today so if you are ready to dive in click that like button and we
are going to get started so if you aren't aware the stock market has taken
quite a dip right now and it did come back up a little bit but things are
still extremely crazy right now and with all of the shutdowns that are happening
and the Federal Reserve even cutting rates and dropping it to even 0% now
things are a little hectic in the world so let's just take a step back and
really think about the important things right now that we should be doing with
our money so first off we want to make sure that we are in a good financial
position in order to take care of ourselves and our families we need to
make sure that our basic expenses are taken care of we need to make sure that
we are paying down our debt so that we don't have those hanging over our heads
for a lifetime and the sooner we can pay off high-interest debt the better we're
going to be and once we have that we want to have an emergency fund available
especially for it times like this you never know if you are going to be laid
off for a while or indefinitely so you want to make sure that you have enough
to cover your living expenses for you know three months six months whatever it
is that you feel comfortable with but you want to make sure and have that
emergency fund available and we also want to make sure that our expenses are
kept as low as possible and the highest expense that people usually have is
their housing you want to make sure that we are buying
homes that we can actually afford so that we aren't a house poor I know too
many people that have bought homes that they really wanted it was a beautiful
home and you know they thought oh it'll be ok if we purchase this it's a little
over our budget and now they're struggling things are really tight and
we don't want that to happen to our selves we really want to be careful with
our expenses and especially those really large expenses like our mortgage
payments or even our rent payment because during times like this we want
to make sure that we can cover our basic expenses without feeling stretched or
without feeling really tight with money because we never know it can happen we
could lose our job so the better prepared we are with our finances during
the good times especially then the better off we're going to be during the
bad times so it's not all about just taking advantage of the stock market and
putting all of our money in there it's really about getting our own finances in
order first and once we've done that then we will have the opportunity to
take advantage of these situations and buy stocks when they are on sell but if
we aren't taking care of our basic expenses first we are not going to be
able to do that and if we do try to take advantage of investing while things are
on sell then we can be in real trouble if things don't bounce back quick enough
and once you've taken care of those things then you can start investing your
money and this is what we're going to dive into in this video because people
are becoming a little crazy and like I've mentioned before it's fear and
greed that really run the stock market when people are fearful they are selling
off their investments and when they're greedy they're buying investments but we
want to do the opposite of what people are doing so when they are fearful and
selling off their investments we actually want to be stocking up because
the stock market is on sell when the stock market takes a dip or when it
crashes then clearly everything is on sell and that's when we want to a stock
up so if we have our finances in order already we will be
able to take advantage of the stock market when it's on sell and really
start to build up our wealth instead of doing the opposite and getting scared
and selling our investments and when people are greedy and the stock market
is going up and people are thinking things are good and they think oh I
should really get in on this investment but usually people end up purchasing at
the peak of the market and then it starts to come down again so when it's
at the peak that's when we want to be selling if we want to sell our
investments to put into another investment or if we are in retirement
and that's what we are living off of off of our investments then that's a good
time to sell we want to buy low and sell high and I want to share an example with
you I was talking with a guy that I know just the other day and he was a little
scared to tell me something because he knows I talked about money all the time
and investing he said you know what I sold my stocks I thought you know what I
can sell them and buy them back at even a lower price but when he decided to do
that the market had already started to take a dip so he sold essentially at the
bottom of the debt because the next day stock prices went up so he was actually
trying to time the market and I've said this before
it's not about timing the market but it's about time in the market so you
don't want to be trying to time the market because this is exactly what can
happen you can sell at the very bottom of the market and think okay I can just
you know buy these at a lower price because it'll continue to go down but it
can go back up the very next day and then you've lost out because you sold at
the bottom of the market and you bought somewhere up here and now you're going
to have to buy at a higher price than what you sold it for so here I is it's
not about timing the market it's really about time in the market here is how I
think when the stock market starts to go down I think okay how
can I get more money to invest in the stock market instead of worrying about
my investments I already have in the stock market and thinking oh maybe I
should sell off those and you know I can buy them back at even a lower price I'm
not thinking about those at all I'm thinking about ok how can I create more
wealth how can I find more money right now to invest in the stock market while
it is on sell and I leave my other investments alone because I go back to
the truth that I know which is the stock market will continue to rise over time
it is going to go up and down up and down even down more but it always comes
back up over time and that is how I want you guys to start thinking about the
stock market when it does start to take a dip great
stocks our own sells so stock up so buy more
don't be thinking oh I should sell off my investments and try to buy them back
at a lower price you guys that's just going to cause stress in your life
because you're going to be watching the stock market every day and think oh
should I buy now should I buy now I really want you to take that long-term
perspective and think ok I'm gonna leave my investments alone that are already in
there and try to stock up while it's on sale because we know it's going to come
back up as warren buffett says be fearful when people are greedy and be
greedy when people are fearful we want to be doing the opposite of what
everyone else is doing we want to be aware of things that are going on in the
world in the economy so that we can have the opportunity to take advantage when
the stock market does go and sell and talking about the Federal Reserve
dropping rates so mortgage rates have dropped since they have done that which
means if you want to get into real estate now would be a really good time
because mortgage rates are lower so you can actually buy this huge investment
for a lot less money because you would be paying a lot less than interest
because you would have a lower interest rate and on the flip side of that if you
have a lot of money in a savings account that interest rate is also going to drop
so you're not going to be making as much money on what's in your savings account
so if you do feel good about taking some of your money out of savings and putting
it over to investments that could be a good option for right
now but you definitely don't want to take out money that are going to be
needing right away because you don't want to cause panic in your life because
you don't know how long the stock market is going to go down for it could start
coming back up right away or it could be a few more months that it continues to
go down we just aren't sure so we want to be careful when we are investing we
want to make sure that we have our basics covered we have you know an
emergency fund or a good way to access cash without feeling stressed so with
people that are losing their jobs and being affected by this we really want to
make sure that we have our finances in order so it's important to start with
the basics and not get caught up and thinking oh I can make a ton of money in
the stock market I should put all of my savings in there and and then the stock
market continues to go down and you have nothing in savings and you don't have a
job anymore so you don't have any sort of income or any sort of buffer to live
we really want to make sure that we have the essentials covered our basic
expenses covered and start building up our wealth over time and not become
crazy or irrational because you never know what can happen
and speaking of not knowing what will happen my friend was telling me that
some of that he knows was in the grocery store just picking up a few different
things and he happened to put some toilet paper in his cart and he's
walking down the aisle and someone literally runs up to his cart steals his
toilet paper and runs away what what is the world coming to this is
craziness and he was so shocked he just stood there he didn't even know what to
do he couldn't believe someone was taking the toilet paper right out of his
car and just running away with it so you guys you never know what can happen and
you never know how crazy people will get unfortunately so hopefully our situation
improves and no one's going to be stealing items out of people's carts
anymore but we don't know how long this will last so we really need to be
prepared and if you really can't afford to be investing your money right now
then don't invest it now it's not the time for you to do that you want to make
sure you have your basic covered first so that you're not in
greater financial strain make sure and really get your financial life in order
and feel comfortable with how much income you have versus your expenses the
money that's going out so that you aren't stressed especially during times
like this hopefully this video helped you understand what we should be
focusing on depending on your unique situation and if you did find the video
helpful please hit the like button and share it with someone else who it needs
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notified on when I do post new videos and as a side note if you guys want to
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watching I'll see you guys in the next video