@nobudgetbabe: I have a $5M net worth and my entire account here is about building wealth. If your goal for 2024 is to start winning with money and building a fat bank account, then you absolutely need to know how to invest. In this video I’m going to share the best investment, the one that is going to make you the most money - and this is the one that none of the finance bros are sharing. PS we’re launching our NEW FREE Ultimate Investing Masterclass, grab your spot before they’re full on our website. For this all to make sense first I’m going to give you a little background info on the different types of investments, because an educated queen is a rich queen. To start off with we have stocks, everyone’s heard about these, but not everyone understands how they work. Essentially public companies, which essentially just means companies that the public can invest in, like you and me, allow you to buy “shares” in their business. The price of the share will change over time based on how well the business is doing. If they start doing things like innovating or making more money, then the company is worth more. When the company is worth more, your shares will go up in price. So for example if you bought shares in Apple in December 2018, you would have bought for $39.06, and since then the price has gone up by 344%, meaning you would have made a 344% return on your money. Basically, when you buy stocks or shares of a company, you become a part owner, so when the company does well, you make money just like the owner would. The average return of the total stock market is 10% a year. Another common investment is called bonds - this is basically where you become a bank, and you lend your money to the government or other businesses for a specific interest rate. Then, just like how you would pay interest on your loans, the company or government you lent your money to will pay YOU interest. Average return of bonds since 1926 is about 4-6%. There are also GICs/CDs which are similar to bonds, but you’re lending your money to a financial institution. Right now the rates are great, around 5%, but in the 2010s the return was closer to 1-2% (it barely kept up with inflation). Now you’re probably thinking - okay, if stocks return 10%, then a stock has to be the best investment. Why would I ever put my money into something that gave me a lower return? And that’s because personal finance is personal, and not every investment is right for every person or goal. So while the finance bros are making tiktoks telling you THIS STOCK IS GOING TO THE MOON (when the reality is, even the pros can’t get this right), or to invest in crypto, the best investment is not the flashiest or newest one - it’s the one that is aligned with your goals. I know it’s not as exciting, but the investment that will make you the most money is the one that matches your goals, timeline, and tolerance to risk. If you have money you need in 1 year, don’t put it into stocks, because you have a 1 in 4 chance of losing money (and that’s with a DIVERSIFIED portfolio, but that’s a topic for another day). A GIC/CD would be a much better investment, because your returns are guaranteed. But if you have money you don’t need for decades, like your retirement, a GIC underperforms the stock market in the long term, meaning you’re missing out on tens to hundreds of thousands of dollars in free money by choosing the wrong thing - even though it was “the right thing” in the first example. Keep learning by grabbing a spot in our free masterclass. Don't miss out 🔥

Nicole Victoria | Money Coach

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Wednesday 03 January 2024 19:02:10 GMT