so you have a hundred dollars to invest but you're not really sure where to begin i've been there and
i understand after all everybody's saying here's the next thing you need to buy here's the dip buy
the dip dividends are a good thing to do oh but make sure you invest in gamestop oh but don't
forget about ethereum don't forget about market cap what about market valuation what if you want
to better understand how all of this works and how to actually get started with investments as
a beginner that's what i'm sharing with you in today's video for my family we actually started
off with a negative 58 000 net worth today our net worth is over 500 000 and it's growing to
a million dollar portfolio we were in debt and we had no clue what the heck we were doing went
through a lot of pain went through a lot of agony went through a lot of loss and a lot of gain and
that's why i want to make this video now special thanks to d.o who made this comment and has an
excellent question so he is 18 years old and he wants to start in stocks with a money limit of 100
that is awesome time is on your side let's try to make you a little bit more wealthy by
talking about how to get started with 100 as a beginner investor so these are the things that
i wish i knew when i was getting started let's get right to it the first thing we need to do
as beginner investors is actually have confidence in ourselves don't go in so worried that your 100
is going to crash and that you're going to lose all your money be confident with the decisions
that you make and in order to be confident you got to have the right type of information that's
what this video is for but here's something that might make you feel a little bit better in 1973
a princeton university professor made a claim that a blindfolded monkey could throw darts at
a newspaper's finance pages and it could select a portfolio based on the newspaper that would do
just as well as one carefully selected by the experts well it turns out as they went through
this experiment the professor ended up being wrong the monkeys actually did better than the experts
so i just went to the pet store yesterday and i was looking for one of these stock
picking monkeys went in and i said hey do you have any of the stock picking monkeys and
they looked at me really weird and i actually got escorted off of the property
so no it wasn't actually a monkey but what it was was a robot computer that was randomly selecting
these portfolios and outperforming the financial experts if that random selection can outperform an
expert have confidence in yourself now what might surprise you is i'm not going to jump right in and
say open this brokerage account because that's not actually the first step we want to take in
building up our well there's actually a process and it's a process that i'm working on called the
sweet life model and i'm excited to share with you here on the channel but today we're going
to dig into the part of the model that focuses on building up your investment portfolio step
number one for beginner investors before you take this and throw it into just any old stock
you got to look at your jobs matching retirement plan even if it means you can only put in one
percent or 100 a month or whatever that may be that has to be step number one the reason why
is if you think about it employers have this program to say if you and maybe contribute at
one percent or five percent into your retirement we'll match that we'll give you some extra money
into your future investment but what you're doing then if you're not participating in that program
is you're basically saying hey boss i i don't need that extra money i know you're trying to give me
some extra money but nah that's okay i i i'm not no i don't need that when is the last time that
you actually thought to yourself i don't want that raise for my job i'm doing just fine we always
want to raise right that has to be step number one now what you want to do is max out the match don't
go above that because there's other ways to take advantage of your wealth building what do i invest
in within my 401k or my 403b it doesn't really matter they usually have target funds and it's
just simple just to throw it in there and call it a day step two is where it gets more interesting
after you've maxed out your match let's say you have an additional 100 a month that you
now found or you're skipping step one because your employer doesn't offer you a 401k or retirement
match you go on to opening a roth ira individual retirement account and the beautiful thing about
roth is because you're gonna pay with your net income which means the income that you get after
you pay taxes out of your paycheck you then get to invest that money and it grows tax-free
which means when you go into the age of retirement and you start withdrawing funds from that roth ira
guess what you don't have to pay any taxes on it and you grow that up to a one million dollar
portfolio that means in your future years you're living off of one million dollars without paying
uncle sam any extra money that is huge now as of 2021 you can invest up to six thousand dollars per
year into a roth ira our next step in step two is to max that out we can start with a hundred
dollars but we want to get up to the maximum amount that we're allowed to invest now in a roth
ira you have a little bit more freedom to pick your investments and here's one that i recommend
you look into things that track the total stock market an etf exchange traded fund something like
a vti a vo or one of the s p 500 etfs that you're most interested in all you have to do is do some
basic research look for something that includes everything i wouldn't put all your money into one
stock i would focus on having that diversification within the etfs something like that total stock
market index like a vti maybe look into some international as well and then tap it off with
a few bonds if you'd like to do that just to balance out your portfolio it makes it easy and
you don't have to sit there and worry about what the market's doing you just put it in you put it
in and you let it go and you let it grow now this could be where you all stop because in order to
build up if you only have a hundred dollars and you're trying to build that up you aren't gonna be
able to max out to six thousand dollars a year in a roth ira but in the meantime let's say you can
only put in a hundred dollars a month into your mouth that's okay hundred bucks a month and let's
say you do that from the age of 18 to the age of 63 100 bucks a month and you don't even increase
it you're only going to put 100 bucks in every single month with the stock market average of a 10
growth per year we do a basic calculation in that 45 year time span your 100 a month grows to a
portfolio of one million fifty seven thousand and eighty five dollars from only one hundred
dollars a month so if you're 18 and you're watching this video get on it right now roth ira
and the one million dollars is tax tax-free in the future holy crap that is amazing if you're older
than that because i know a lot of you say hey i'm like 50 years old and you're always talking to the
18 year old hey i'm not 18 anymore either but what they have on their side as an 18 year old is time
if you're older let's say you're 50 you don't have time on your side so that means you do
have to scale up your income in order to get to that one million dollar threshold so your 100 a
month may have to end up being a thousand or two thousand dollars a month it gets very serious the
more time you wait but don't wait any longer if you're 50 years old right now don't wait another
day to think about it because every day you wait you're losing out on compound interest start today
start with 100 if you have to if that's all the money you have start with 100 bucks and then get
yourself up to maxing out the roth ira once you do that you're now ready to move on to number three
now this is when you've maxed out your employer sponsored account you've maxed out your roth ira
at 6 000 a year and you've got some extra money maybe you've been doing some side hustles you're
scaling up your income you're cutting down your expenses you're doing cool things like that you
got some extra money that you want to invest to grow your portfolio and become a millionaire this
is when you then step into the brokerage account this is where you go into something like i've used
weeble i use robinhood um stash it really is up to you what you want to use i personally find
the easiest ones to use because i like using the app and making it fast and simple are things
like weeble and robinhood and public those are probably my top three that i use and they do
offer free stocks for signing up i'll link them in the description if you're interested in checking
it out now that you've taken advantage of the tax benefits of the retirement accounts you can then
put your money into this and set it and forget it and honestly the same type of rules apply
as far as looking into good quality growth etfs if you do something like that it allows you to
have that less stress-free approach you don't have to worry about the technicals of a stock you don't
have to worry about market cap and valuations and things like that you can go into something
that basically gives you diversification right off the bat and just set it and forget it some of the
highest account holders in fidelity when they did a study actually forgot that they invested money
in their fidelity account so these people went all of these years and they forgot about the money
that they invested and they ended up with the highest returns why because they weren't trying
to time the market they were putting the money in letting it grow and calling it a day so imagine
if you did the same thing max out your roth ira and then you come in and you put in money into
your weeble or your robin hood or your brokerage account of your choice and you just forget it
exists you just keep putting money in and you're just like yeah i don't whatever not looking at
it just gonna keep putting money into it if past performance indicates future performance sounds
pretty good to me so how did i grow my portfolio i did exactly what i talked about today and i'm
gonna keep doing it that investment in a blend of a total stock market index an s p 500 index
internationals and bonds that's what i'm focused on and i stay consistent with it every single time
and i'm always looking for ways to scale up my income that is the secret for the beginners get
in start today and stay consistent if you found value in this video make sure you subscribe
for more here's the next video to check out and until next time we'll see you on the next video