Hello everyone
It's WeiWei
Welcome back to my channel
I am super excited today
Because today's video
It's to share with everyone
One of the themes of my channel
Which is
Investment
Today's video
Is the first one
About investing
There are a variety of things surrounding investment
But today
I'm going to share with you
Investment in stocks
I used to hear a lot from my family members
About one of the stocks
Earning tens of thousands of dollars
At that time I just heard about it
It went in from one ear
And it went out from the other. I didn't know much about it
For example wow
Stocks investment
Can help you earn with that much money
What's my family also told me
You may lose the same amount in a day
The money you earn and lose in a day
Might be the salary one can earn in 6 months or a year
At that time I feel
Investment is a good thing to help you earn money
Back then I knew nothing about stocks
Nothing at all
What are stocks
Where to buy them
Why they can make money
What are financial statements
I didn't know anything about any of them
Starting from March 2020
When we were hit by the COVID-19 pandemic
Besides doing my side hustles such as UberEats and DoorDash
To deliver food
If you haven't watched my video about that
After watching this video
Go ahead and watch it
Basically I stayed at home to study
Everything about stocks
I'm sharing with you what I learned for the past one year and a half
How do you mentally prepare yourself before you start investing
What are the sources of income from stocks
Two platforms
You can use in Canada to trade
Will be shared with you
I hope they can help you if you want to start investing
What I'm going to share is investing in the long time
If you are a day trader
Or a short term investor
Give me a thumb up and like
There is a door on the side
And then you can leave
A disclaimer here
What I am sharing in my channel
Is for informational
And entertaining purposes only
It doesn't constitute financial advice
Please consult licensed advisers before you invest
Please do your research and your due diligence
This video
Records in the past one year and a half
What I have learned in stocks
I would like to share with you my learning curve
And help you to get a better understanding of your financial situation
So that you can plan your finance in the future
My video today will definitely help you
How to adjust your mentality
To the right path
There is a famous saying
If you don't take care of your money your money wouldn't enrich you
Stay tuned
If you like this video please don't forget to smash the like button
Follow, share, and turn on the notification bell
I have 21 years of experience in the Foods & Beverages industry
My channel focusses on personal finance
Entrepreneurship, and investing
Let's dive into our topic today
Mental preparation before investing in stocks; having 3 to 6 months of contingency funds available
In your bank account
The contingency funds shouldn't be deposited into your checking account
Basically chequeing account
Is for your day to day expenses
There is no interest earned from the money in it
It won't bring you any incomes
You need to know your monthly income
And expenses
Then you can calculate
How much contingency funds you need to prepare
As its name suggests the contingency funds are
Funds for you to use when emergency happens
For example when you are sick
You can't work
Or unexpected things happen in your life
Of course you have ownership on your money
Where is not urgent
And you have to use the money in the contingency funds
You can use it for sure
But remember to make it back
Many new investors
Are very desperate in the beginning
Because they think stocks can earn money quickly
So they invest 80 to 90% of their money
Into one stock
Please never never do it
Maybe some people will argue
In 2020
Some people invested all of their savings
And even borrow money from credit card to buy stocks
Like Tesla
Or another automobile company
Nikola
And a video game company
GameStop
Earn a lot of money for a small group of people
But 95%
Of people didn't earn money
Which is not known to you
You just see the price of these stocks increase sharply
Then you invest all your money into it
But all of sudden stock prices dropped
And you lose all of your investment
When you see the stock price going up
It's already too late
After you buy in
People with enough preparation
Start selling their stocks
Your money is like throwing into a sea of water
And they are gone forever
Unless you have inside information
And you have bought in before prices go up
Otherwise it's too late you can't compete with them
In short
Don't use all your savings to buy stocks
You need to prepare contingency funds which can support you for 3 to 6 months
Some people
Invest most of the money into the stock market
And then they found
They don't have money for their living expenses
Or unexpected things happen in their life
Then the start of selling stocks from their investment accounts such as TFSA & RRSP
Search practice is not advisable
There are many things to talk in that respect
I will shoot another video to explain later
Every time when you receive your pay
Put 10% of the money
Into your investment account
And get ready to buy the stocks you have done your research
Pay yourself is very important
Most people when they have earned money
They would spend it in their every day life entertainment
Or meals
If they have anything left at the end
They put the remaining amounts in their regular savings account
Two points to remember
They can help you to do better
First the hard earned money
Should pay yourself first
So that your money can make money automatically for you
When you sleep or work
Your money can generate passive income for you
Treat yourself good
Care about yourself first
After that
You will have the ability to take care of others
This is what I learned from my past experience
The second thing you can do better next time is never never
To save a good portion of your money into
Your regular savings account
Because
You are losing bit by bit your hard earned money
Some people may wonder
How come money in your savings account
Can be lost
Will the money be gone
But did you know the inflation every year
Is 2%
That means if the saving accounts of your bank account
Doesn't have a annual interest of 2%
You are losing your money every single day
You can look at this chart
This is from the latest Oct.
Since the pandemic no banks
Have ever offered interest of 2%
For myself I use RBC
Which gives me a interest rate of 0.05%
Are you still believing
The money in your savings account
Is still ok?
Sams small financial institutions such as Tangerine Savings Account. Offer new customer
In the first five months they can offer an interest rate of 2%
But from the six month
It scales down to 0.1%
Which is on par with the inflation rate
You won't earn a penny out of it
Later I will make another video to share
What financial institutions are better than major five banks in Canada
If you don't have time to study stocks
Or you don't have any interest in it
Put 10% of your income
to Dow Jones, Nasdaq, S&P500, or GSPTSE
After you buy them
You don't need to spend a lot of time looking at them
Worrying about them you can continue
With your usual routine
For sure stock prices fluctuate you don't need to worry
These stocks
Have an annual return of 7 to 13%
When you start as early as possible
You will be able to make more money in the future
An annual return of 7 to 13%
In comparison with your savings in a regular account
Which make you lose money every day
Which one would you pick
The best investments in the world is investing in yourself
I'm not saying you need to go back to school
Come on it's 2021 already
There are a trove of information available online
If you have a cell phone
A laptop
Internet connection that you can start learning
There are many free videos on YouTube
There are many public groups on Facebook
There are many free/paid courses online
If you don't have time to watch videos
You may want to try Podcast
Or Clubhouse
Which allows you to listen in
While doing your own things
You can listen
For example I invested in myself
By spending more than $300 CAD
To learn
How to set up a YouTube channel
From scratch
I'm so pleased I did it last year
Because this year this course
Has increased to C$2000
Because the creator become more famous
Thanks to his course
On how to become a YouTuber
You're watching my seventh video
Let me do a little bit of promotion here
On Friday evening at 6 PM
I'm going to upload a new video for you
I work from Monday to Friday at Starbucks
After work I spend time
Managing my YouTube career
I've always believe
Your success lies in where you spend the most of your time
Another important thing is
You have to put into practice after you learn a new thing
Many people like learning
But they only learn
If you don't do it
How would you know if that works
If I have another chance to choose
I must
Have started my YouTube channel 10 years ago
When to act
Is much better than you never act
Before you start investing
Know it
Just watch my video
Because I've shared with you what I learn for the past one year and a half
Isn't that good?
There's many things to talk about regarding stock investing
I will share knowledges about basic stock terms later on
How to analysis
Understanding of the financial statement's balance sheet
And income statement
Investing guru Warren Buffett. What are his famous concepts
Many stock investing knowledges
Will be out in the near future
Make sure to follow my IG Willywuwerq
And all my other socials
If you want to know more about me behind the scene
You can add me on IG
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Helped you learn something new
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Don't forget sharing is caring
I will see you in my next video! Bye bye!