One of my favorite sayings is if you do what everyone else does you'll have what
everyone else has and quite frankly when i look around me i'm not sure having
what others have is what i want generally speaking when it comes to
money most people are either in a ton of debt have very little savings have an
insignificant income or a combination of all three again this is not a position
you nor i want to be in so as such if we want to get ahead financially we need to
take the road to the less traveled and one way to do this is to invest unlike
the rest and as such in this video i will share with you how much you should
be investing every month and if you're new to the channel then hit the
subscribe button below for more life-changing content as i just alluded
to most people's financial situations aren't great the media americans bank
balance is just over fifty three hundred dollars in it meaning that they are one
major car repair or broken fridge away from having their piggy banks fully
depleted ironically enough the average american credit card balance is also
fifty three hundred dollars which may not seem overly consequential until you
realize that if you're only paying the minimum payments on your card it would
take you nearly three years to pay it off and they cost you would be an extra
fourteen hundred dollars in interest finally recent polls show that the
median income for a single american individual is just 36 000
i don't mean to offend anyone who makes this amount of money but i think we can
both agree that making this income is not going to have you raising up the
forbes list anytime soon therefore as you can see doing what everyone else
does and having what everyone else has is not exactly what you want to aim for
financial abundance is your goal so far we've talked about people's propensity
to save manage debt and earn but the final piece of the financial pie we
can't overlook is investing now let's call it like it is not everyone
regularly invests some people are too scared to part with their money and
would rather keep it safe in the bank others have no idea how to even execute
a trade order and as such never give their money a chance to grow finally we
have those who don't even have a dime in the bank to invest with therefore for
them investing is definitely off the table fortunately over the past few
years more and more people have been taking an interest in investing and as
someone who loves to see people's money grow this makes me extremely happy if
you want more people to invest too then make sure that you smash that like
button below so i know you're part of the investing gang now as i said as of
2020 nearly 15 of all investors in the market had just started investing that
year so this speaks volumes to the incredible rise and interest in
investing we've experienced in recent times now while i love to see people
using the stock market to grow their wealth the unfortunate part is that most
of them are doing it all wrong no i'm not talking about the fact that many of
these investors are trying to time the market or ride the returns of a hot
stock the issue goes much deeper the issue i see is that many investors are
simply not investing enough money to ever reach the financial success they
desire why is that because they're being told not to from what i've seen and
heard financial planners tend to recommend people invest 10 to 15 percent
of their after-tax monthly incomes as we've seen the median income is roughly
36 000 which after taxes is probably closer to 30 000
at the top of the range at a 15 investing rate this means that said
person would end up investing 375 dollars a month assuming a constant
investing rate and income if someone were to invest this amount for the next
40 years at a 7 rate of return they would be able to amass roughly 1 million
dollars for most people the fact that you can be earning a widely attainable
income and still become a millionaire in your lifetime if you start investing
early is great news for everyone however there is one issue with this road to
seven figures that most people who want to follow this path need to be aware of
and we will dive into what it is and how to overcome it right now you see
whenever someone busts out their compound interest calculator it's easy
to get excited as you project your future net worth if you regularly invest
for the next few decades the trouble is there's a financial culprit that stands
in your way of realizing the financial success you want that financial culprit
is inflation when most people play the compound interest calculator game they
tend to focus on gross returns however when inflation is factored into the mix
the results become much less impressive how much less impressive let me share
with you an example to illustrate just how underwhelming the results will
actually be using our prior example if you were to invest for the next 40 years
at 375 dollars a month you'd end up with roughly a million dollars to your name
the problem is that due to inflation a million dollars in 2060 won't be worth
anywhere near what it's worth today if we assume a conservative 2.5 inflation
rate over the course of our example what you'd end up with is an
inflation-adjusted amount four decades from now would be just over 370 000
now don't get me wrong 370 000 is still a [ __ ] ton of money but is it a million
dollars not exactly so you're probably wondering how much money you would need
to amass to become a millionaire in four decades time and the number you must
invest towards is much much greater again assuming at 2.5 inflation rate to
have a million dollars worth of today's money 40 years down the road you would
need to accrue roughly 2.7 million dollars i know this is going to be a gut
punch for some because saving and investing even to the point where they
get a massive million dollars is a challenge let alone 2.7 million however
half their issue revolves around being given the wrong financial advice the
truth is that for the average person investing just 10 to 15 of your income
is not going to cut it you'd have to be investing a thousand dollars a month for
the next 40 years to reach this 2.7 million dollar mark which if you're
investing 10 percent of your after-tax income means you need to earn 150 000 a
year or more depending on the tax rates that apply to you now i believe that
everyone has the potential to make this kind of money but let's face it most
never will as such you need to ditch the common investing advice of investing 10
to 15 of your income and aim a little higher what i recommend is that you aim
to invest 40 of your income every single month i know this is gonna be an
intimidating number for some but it's truly the only way you're going to be
able to amass a significant amount of wealth if you are and continue to be an
average income earner let's go back to our prior example to see how saving and
investing 40 can in fact make you wealthy if you earn the median income of
thirty six thousand dollars or roughly thirty thousand dollars in after tax
income you'll have twenty five hundred dollars to work with every month at a
forty percent investing rate this means that every month you'll be putting a
thousand dollars to work in the assets you choose to invest in if we assume you
receive an ongoing seven percent return that a thousand dollar monthly
contribution will over the course of the next 40 years turn into 2.7 million
dollars does that figure ring a belt to you it should because that's how much
you'll need to acquire to be a present-day millionaire 40 years from
now therefore you're coming to see that true wealth lies in taking the path less
traveled when it comes to your own investing journey so now you know that
it is entirely possible to become wealthy even if you aren't exactly
cashing the biggest checks in the world pretty exciting right you've sidestepped
a mistake around inflation that most others make however there is one final
obstacle that you must avoid on route to financial success oddly enough you look
at him or her every morning in the mirror yes i hope you've already figured
it out you are the only obstacle that stands in your way of achieving
investing success what do i mean by that let me explain you see in every example
i've given so far we have assumed one thing that you are consistently
investing towards your goal investment figure the trouble is that most of us
have never done anything for four decades i mean for me personally i'm not
even 40 years old and many of you aren't either which means that we can't even
fathom doing something for this extended period of time i mean personally in my
30 years of life the only things i've been able to do consistently are eat
sleep and use the bathroom everything else has been hit or miss so as you can
imagine when inconsistencies start to make its way into your investing regime
you start to put your future wealth at risk one miscontribution turns into five
and all of a sudden you wake up one day with a year's worth of contributions
having been missed quite honestly this is the last thing you want slowing down
your path to wealth because as we've already talked about you don't need a
massive income to get rich you just need time patience and consistency now while
it can turn you into a patient person i can give you a strategy one that i use
myself to ensure that i never miss a contribution and if you want to use it
too then keep following along the best way to ensure you never miss the
contribution is to make it automatic kind of like how you automatically check
your phone when you wake up in the morning but instead you are automating
your investing process fortunately most brokerages today allow you to set up
automated investment contributions in short this process involves setting up
an automatic deposit from your bank account to your brokerage account which
then buys into the funds you've pre-selected i've been using this
technique for about five years now and let me tell you this has had my
portfolio looking nicer by the year while also not letting forgetful hold me
get in my own way now of course we can't render this discussion without talking
about what kind of assets you should be putting all this money into right the
reality is that the options are endless you can invest in real estate stocks
crypto bonds and a host of other different assets as the catch-all
response to the question of what you should invest in i think the main thing
is that you invest in what you understand if you understand real estate
then you should be able to find great properties that will not only appreciate
over time but will provide you the cash flow you need as well if you understand
stocks then you may be able to find a 10 bagger and significantly increase your
ability to grow your portfolio in a small period of time finally if you're a
cryptocurrency enthusiast then you may be able to predict the next major coin
or foresee a coins price floor and buy-in before the next boom cycle what
i've come to realize is that you can win by investing in any of these popular
assets if you know what you're doing some may look down on stocks if they
believe real estate is a better asset class but i can almost guarantee that an
experienced stock investor will get better returns than a newbie real estate
investor any day of the week in short it's not what you invest in but how much
you know about it and as such you'd be best off investing in those assets
you're most comfortable with hey it looks like youtube thinks this next
video is the one that will change your financial life forever give it a watch
and let's see if they're right