in this video we're gonna be talking about the things that you should
consider before you invest any money at all into the stock market even before
you invest your first $1000 into the stock market that's coming up right now
what is up my YouTube family my name is Mike this is my sidekick chipper
welcome back to money and life TV if you are new to our channel highly
considered subscribing because every single Sunday on this channel we make
new videos that are gonna help you with your finances your investments taxes and
videos that are gonna help you not only with your career but just with your
everyday life as well have you guys been I hope your week is going well I'm
filming this it's early December of 2017 trying to get the whole Christmas
shopping thing done have you guys even started shopping for other people oh
it's it's busy but I love this time of the year it's so much fun and I just
love getting some downtime and here in a few weeks and being able to spend time
with friends and family that's my favorite part of Christmas
but you guys are here to learn about investing so that's what we're gonna
talk about today now if you have not already seen my video on how to invest
your first $1,000 in stocks make sure to check it out
I'm gonna link that up right here and I'm also going to link it down in the
description section down below so make sure to check it out this video is
really a follow up video or a continuation video of the video I just
mentioned it's gonna cover some of the main things are what I believe to be the
main things people need to think about and consider before ever investing now
it's not all comprehensive but I think you're gonna agree with some of the
things I'm about to say and as you're watching this be thinking about other
things that might make an impact and make sure to leave that in the comment
section down below because if there's something I miss please be sure be sure
to share it with some of our other viewers what other things people should
be thinking about the video I'm about to show you actually filmed a few weeks ago
it's gonna cover some of the main points but after I went back and watched it I
wanted to add a few more which is why I'm kind of breaking it up like this so
you're about I'm about to show you the footage right now so sit back and enjoy
and then once that's done you're gonna see me back here again wearing this
shirt just like magic just like magic so sit back and enjoy
some of the main reasons I think people should consider before investing here's
that footage right now okay so let me talk about some of the important
considerations I mentioned at the beginning of this video that you really
should consider before investing anything at all into the stock market so
the first one is learning have you learned have you done any research at
all before investing this money depending on how interested you are
investing people do different levels of research some people just do a ton of
research other people don't do any research at all and some people do it
this is a tiny bit of research before making an investment if you haven't done
any research at this point and read any books I would at least hold off from
investing that first thousand dollars and go check out a couple books on
investing and you don't have to buy them you can go to your local library and
check them out for free and I will link up in the description below some of the
books I recommend so you guys can check them out for yourself and I'll also be
doing a video review on some books in the future that I would recommend or at
least that I from I felt have really helped me in investing so like I said
invest your first in at least invest some money in yourself in your own
learning your knowledge of the stock market investing before you invest your
thousand dollars if you're diving into stocks whether it's one or two or more
before learning anything then you're practically gambling and I do not
recommend gambling there's tons of data for you guys to look at so just take
some time look it over learn a few things and then start investing don't
invest right off the bat just learn a little bit and then invest the second
thing I want you guys to consider is really it's your debt there's a lot of
people who are so eager to invest and I can tell you I was one of them I had
student loans before I had car payments etc and so I was trying to invest during
that period and it was a very bad decision and the reason that was a bad
decision for me is because in the back of my mind I was in a sense worried
about losing money right so I haven't earned this money have worked really
hard for it and I was worried about losing it as extra worried about losing
it because I knew I had student loans I had a car payment and I credit card
payments to make I had all these other things on the back of my mind and I
don't know if you guys have started investing yet but investing can be
really emotional I know it's hard to believe it but it's like an emotional
rollercoaster at times and so it's taken me a while to get over that and I'm good
now but initially for the first year - I wasn't
I was very emotional when I put my money in the market and watch it go up or down
it's it doesn't feel good when it goes down it just doesn't and if you have so
what I'm saying is if you have a lot of debt whether it be student loan debt its
credit card debt car payments or whatever it may be now if you have a
mortgage I don't really care if you have a mortgage if you have a mortgage great
you know still invest but if you have things like your student loan debt
credit card payments and things like that at least pay those off first I
really recommend that because if you have no student loans no car payment and
no credit card payments and no other tiny little debts like I said I'm not
talking about a mortgage I have a mortgage and I still invest but the the
but the other stuff that if you get rid of the other stuff you're gonna have so
much more confidence and so much more comfort when you go to invest and it
truly made me a better investor and a different I had a different feeling when
I went to invest once all my debts were gone because then at that point I was
building I had a solid foundation beneath my feet so when I put that money
in to the stock market when I invested that thousand dollars it didn't matter
if I lost it because one I wasn't gonna lose my car I wasn't gonna default my
student loans and I wasn't gonna have to worry about not being able to pay my
credit cards my house payment etc that was all taken care of so you're gonna be
you're gonna behave better emotionally you're gonna be stronger if you have
your ducks in a row if you're building a solid foundation under your feet before
you consistently start to invest so really consider that you might say Mike
what if I have a company that I'm working at where they're gonna match my
401k contribution well if you feel comfortable doing that even though you
have some of these other debts well go for it you know that's like I said it's
your money guys it's not mine it's yours but I just want you to have some
perspective of why I do what I do and what you might think about a little
consider a little bit more before making some big decisions but if you want to
invest to get your match at work then go for it you know I'm looking up
not gonna ding you for wanting to do that but in terms of overall though I
really do recommend paying down your debt or paying off your debt before
really going into investing because you're just gonna be so much of a better
investor and that's at least that's what I found to be true for myself when I had
no debt alright guys as promised I'm back here I am again wearing this shirt
not wearing another blue shirt guys probably notice I have a lot of blue
shirts no joke I probably have like seven or eight of them okay so there's a
couple other points I wanted to make or share with you guys when I was filming
that video that I didn't get to make back then and one of them for sure is
having an emergency fund I know I didn't initially mention that and you were
probably watching you're thinking hey why isn't any messaging an emergency
fund well that's definitely one of the things I would recommend and what an
emergency fund is very common is to have three to six months worth of exploiting
expenses saved up in case of an emergency like you lose your job or
there's a medical incidence or something where you need a lot of money fast so
having an emergency fund in place is gonna help you stay afloat and also it's
allow you to be in a better investor because what I see people do is a lot of
people make the mistake of investing too early and I'm not talking about their
age I'm just talking about they haven't got an emergency fund set up and they
haven't done some of the other things I mentioned previously in this video and
so what happens is when they go to invest that money whether it's in their
401k whether it's in an IRA or Roth IRA or wherever and they end up having to
take the money out and unfortunately if they've already put that money into a
retirement account then they have to pay penalties and
often more taxes on top of that just to get their money out when really had they
have set aside some money in the first place they would not have to do that and
because when you have to pull money out of your retirement account you are
killing I mean literally killing your chances at wealth because you need that
money to compound for you be working for you and it just really hurts you and set
you back so as much as you can build a solid foundation under your feet so you
don't have to pull from it or take out 401k loans or things like that the
better off you're gonna be and the more likely you're gonna increase your odds
of becoming wealthy someday okay another thing I wanted
quickly mentioned is I would not recommend you invest at this point yet
if it's going to cause you to take out more debt so what I mean is like if
you're about to make a large purchase let's say it's a home purchase or a car
purchase or whatever or something that's gonna cause you to take out even more
loans or more debt than I would say that you're not ready to invest just yet just
I would say just hold off a little bit longer and until you've kind of got
those expenses squared away and if you find yourself just struggling either you
have a money management issue where you need to get your expenses more under
control or you have an income problem which is very common that those you have
to handle whether it's an expense issue or an income problem or a combination of
both make sure you get those handled quickly so then you can go about
investing the last thing I want you guys to think about at least mentioned in
this video like I said guys I'm not gonna cover every idea in the world so
please if you have other things that you think should be mentioned or you feel
with the appropriate please share them in the comment section down below
because I would love to hear your thoughts your opinions on this subject
ok guys I'm about to ask you a question to be honest I don't think I actually
knew the answer for myself but now that I know what I know I want to make sure I
ask you guys this and at least have you guys think about it is when you're about
to invest let's say you are ready to invest let's say you've got everything
else we've talked about in this video already covered you've got your debts
paid for you've got your emergency fund so you have a solid foundation you're
like Mike I am ready I'm let's go brother let's invest like
okay so what I want you to think about now is with that money you're about to
start investing you are you gonna need it in five years from now or less if
you're gonna need money in less than five years this money you are about to
invest I would probably just put that money in a brokerage account you can
still invest in a brokerage account but at least if it's in a brokerage account
you can then get it out without any issues without for any reason you want
you can pull the money out so whether it yours putting some money aside in a
brokerage account to help you save up quicker by investing the money to save
them for home or something like that a very very large purchase and you want to
just have a better return on your investment than a savings account
because obviously you got your money in the bank your
obviously losing money because inflation is eaten up your wealth but with that I
would recommend a brokerage count now if you're saying Mike I'm ready to invest
I'm ready to invest for the long haul that you're like I want to put this
money in the market I want to invest it for over five years
you know and tell the damn retired and have this money grow and grow and grow
for the next 10 15 20 30 years and for you I would probably instead of opening
a brokerage account I would say at that point if you're depending on how old you
are and it's the younger the better honestly the younger you start the
better is open a Roth IRA if you can open a Roth IRA and have that money
growing tax-free I would totally do it in fact because you go looking right now
you can only put fifty five hundred dollars a year into a Roth IRA and so
the sooner you can start at the better but what's great as that money grows
over time you can get that money out tax-free some day so if you have
dividends in the net account for example that's gonna be tax-free income for you
someday and I'm gonna be making videos on Roth IRAs and all the rules about
them very soon especially as this coming taxes approaches I'm gonna do more
videos on education credits and deductions and also how Roth IRAs work
because the Roth IRA is one of the best investments you have and if you're ready
to invest for the long term I would start there and then go into your 401k
etc from there so just think about that though guys the question I just asked
you if is do you need the money in five years or less brokerage account if
you're ready to invest you don't need this money for years and years and years
down the road I would say Roth IRA or put that money into your 401k alright
guys I really hope you found this information helpful hopefully gave you
some perspective you got some things to think about hey if you're like hey Mike
you missed this you missed that just no problem leave it in the comment section
down below I would love to hear your thoughts your opinions and just share
that information with everybody in this community because that's what this
channel is about is helping people improve their financial position their
career and their life if you guys liked the video make sure you smash that like
button share this information with a friend especially a friend who enjoys
investing and make sure to subscribe if you have not already all right I love
you guys you guys are always a fantastic audience thank you for sticking with me
this long not only on this channel but this video this thank you for taking
time out of your day to watch this and I will see you guys in next week's
video love you all have a wonderful evening and have a
great week bye guys live life on caged