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Investing for Beginners | How I Got Started With No Money (broke as a joke 😫)

Hey this is jeff rose from goodfinancialcents.com with another video and today we’re talking about investing pacifically those that haven’t started investing that want to get started that don’t have a lot of money so today what I want to share is my investing journey how I got started I also want to share the worst investment I made that lost me five thousand dollars and also the best investment that I made that cost me less than ten bucks we’re gonna share all that with you today all right so let’s talk about investing so quick background on me I was a finance major in school that’s what I majored in but even though I was a finance major I really didn’t get investing believe it or not they didn’t tell us about mutual funds I didn’t tell us about 401ks Roth IRAs ETFs we talked a little bit about it but not a lot not enough to where once I graduated I was comfortable going out and making my first stock purchase but when I’m happening while I was in college I got an internship at a local investment firm so I had the internship turned to a part-time job which ended up landing me what I am today a financial planner so I got my foot in the door and that allowed me to talk to other brokers talk to their assistants and I started to learn a lot about investing so that is how I made my first investment I was talking with one of the financial advisors there and she recommended two mutual funds that I got started with now I was in college so I didn’t have a lot of money at the time on top of the internship I think I was working 20 to 30 hours a week at a mall job so I had some money I was in the Army National Guard so I had that money coming into so I had enough to do something so I started doing fifty dollars a month into an individual investment account so there was this wasn’t a Roth IRA this wasn’t a traditional IRA it was just an investment account and I started putting in fifty dollars a month and then I would split that between these two stock mutual funds now here’s the cool thing or funny thing or sad thing however you want to look at it I didn’t know anything about mutual funds I didn’t know if these were good mutual funds I had no clue I was trusting this financial advisor that had been the business longer than I had been and I trusted their opinion their recommendation so that’s what I bought hindsight being 20/20 they weren’t that good of mutual funds they were horrible they weren’t that good they weren’t great they were just ok but I learned a valuable lesson one or two things one you know you got to trust but verify – you need to get started investing you kind of take that initial step and start doing something so I was a little disgruntled a little upset because you know it wasn’t the greatest mutual fund but in a way I was thankful because had I not started I would have been clueless right I wouldn’t get kept talking about investing talking about making my first investment watching more youtubes about investing and never actually making an investment and it was only $50 a month so it wasn’t like it was a huge ton of money to where if it was a piece of crap investment I lost all my money I lost 50 bucks who cares right we blow 50 dollars a day on junk instead of you know making an investment so yeah it wasn’t a great investment world but I learned a lot through that experience so once I started buying these mutual funds I would get my statements I would get the prospectus in the mail which I actually read all into some of it and the prospectus is like a booklet I just talked about the investment what they invest into what they’re investing guidelines are but you start getting all this material all this information about your investments so you’re kind of either you can just throw in the trash shred it whatever you want to do or you can start looking at it you know and start researching it and start learning it and that’s what I did so even though they were crappy investments it was such a huge opportunity to learn about the stock market about mutual funds because then started making me ask questions on is this the best mutual fund are there other mutual funds that are out there so I started doing more research so I started realizing on my own that you know what there are better mutual funds out there that I could invest into so that was my investment journey so I started doing as I said 50 dollars a month which doesn’t seem it’s not a lot of money and a lot of people I talked to don’t think that they can start investing until you have $1,000 $5,000 $10,000 and the fact is like that is an absolute lie you can start investing as little as $50 a month $25 a month something something to get going there are a ton of online platforms I have blog content you could research other videos that you could watch spend that time today talking about the different option but there are options out there that you can start investing for as little as fifty bucks a month and do put that number into a compounding interest calculator and you’ll be blown away on what that can grow to be and if you get a chance there’s a video that I have on my youtube channel it’s called how a 16 year old turned five hundred dollars into over a half a million so check out I have a link in the description you can check out but that will blow you away and I’ll say that title again how I showed a 16 year old how he could turn five hundred dollars into over a half a million that will open your eyes into compounding interest alright so go check that video out so that was my investing journey that’s how I started from there I started realizing that I needed to have a Roth IRA Roth IRA is one of the greatest investment tools that you can have we’re talking about tax-free earnings tax regrowth if you like paying taxes the government then don’t do the Roth IRA don’t do any research just dismiss delete this whole part of your brain but if you want to screw the IRS it avoid being huge amounts of taxes later on then take advantage of a Roth IRA so Roth IRA is not an investment it’s an account type and then you can put whatever investment you want so if you want to buy a mutual fund if you want to buy individual stocks ETFs whatever you can put that inside a Roth IRA and now with my next journey so as I started to make a little bit more money as I started with understanding how I wanted to invest I need to invest for the future the Roth IRA was the next thing for me that I want to put as much money as I could as of right now you can only put in five thousand five hundred dollars per year into the Roth so that’s how much I did as long as I could I my wife did the exact same thing so that was the Roth IRA as far as how my investment journey has evolved I still own mutual funds I own some vidual stocks I own I talk about peer to peer lending on other videos I have peer-to-peer lending with Lending Club and prosper ETFs I have a few real estate notes don’t have any real estate properties right now and then I have my online investment just like my online properties but that’s a majority of how my counselor set up I’ve got a tradition I’ve got 401 K from my business I’ve got Roth IRAs I’ve got a joint account we have some individual investment accounts and that’s pretty much how it’s all laid out so it is pretty well diversified if you picture a PI and all the different sectors in there so that’s how it has evolved but the fact that matters if you don’t have a lot of money you don’t think that you can make a difference and I just want to say it one more time fifty dollars a month get started into something so that you can start learning okay all right so now I mentioned the beginning of the video so that is it my investment journey what was the huge investment mistake that cost me $5,000 man it’s kind of bringing back some old some bad mad boat bad mojo here bad bad vibes but so as I was growing as a financial planner you start talking to other advisors you start talking to other people and all these different investment opportunities come up and there was this opportunity with a penny stock that I got turned on to by somebody else that was supposed to just blow up I think this page stock was trading at about a dollar fifty a share somewhere in that range and what I didn’t know at the time was there is a there is not a huge market for penny stock so if you’re going to put a market order if you’re gonna put a buy order in to buy a penny stock you want to put some sort of limit on it so there’s a thing called a market order which basically is like you just say hey I want to buy a thousand shares and if the stock is a dollar fifty a share in my mind I thought that I was buying a thousand shares of the dollar fifty has a market order when I figured out really quickly is that we in a penny stock they can drive the price up really quick so instead of buying a thousand shares a dollar fifty I don’t recall exactly but I bought like a hundred shares a dollar fifty 200 shares a dollar eighty three hundred shares at 220 so on and so forth right I could have put a limit on that price so they didn’t go up above at dollar fifty I was in the business for think less than two years at this time so I didn’t know that this was very a very expensive lesson learned so when I went to sell it there wasn’t a market because nobody wanted to pay or they didn’t want yeah they don’t pay over two dollars for this stock that was only worth than you know dollar fifty dollars sixty at the time I was able to sell some of them but a majority of them I end up just having to sell at a loss because it never got to that price the penny stock never got to where it was supposed to get to you know supposed to go from a dollar fifty I shared all into twenty bucks or share that didn’t happen can it happen yes I’ve seen make I’ve seen people make money off penny stocks didn’t happen to this guy so that was a five thousand dollar I’m at can call it an investment but it was a five thousand dollar loss of $5,000 lesson learned so I’m very passionate about making sure that people don’t get caught up in the whole penny stock debacle can you make my own piss ox sure whatever yeah you can are you gonna make money on Payne stocks there’s about nine point seven time chants out of ten nine point seven times out of ten that you’re not going to do it so don’t get caught up and try to make my own penny stock so that was a valuable lesson to learn the third thing I wanted to talk about was the best investment that I’ve made an investment that will cost you less than ten dollars and I don’t have like the one specific thing but what the best investments I’ve made for myself or books books I’m blown away how people don’t read books there are so many great books out there so many things I’ve learned through reading books that have changed my life not just for my business but for my family for my marriage for my personal life and going back in my early years I remember reading Robert Kiyosaki’s Rich Dad Poor Dad it’s still one of the best books that I think that any young person or old person should read now I know Robert Kiyosaki he’s got some other stuff with his real estate and bankruptcies and all that so I’m not saying trust his investment advice but what I love about Rich Dad Poor Dad was that it changed my mindset on how things could be I learned about the cash flow and how going from an employee to an investor and just learn about just that whole mindset shift and you know in that book I didn’t walk away with a clear business idea or what my next thing was going to be but I did walk away was with feeling inspired like wow okay there is a whole other world that I’m not familiar with that that I want to be familiar with so I began that journey of trying to figure out what that was now it took me a lot of time and a lot of years I figured out a lot of failures along that way to finally figured it out you know where I am today but without reading that book and without having those failures I wouldn’t be here today so that’s why reading books and investing into reading books is by far one the best investments you can make Rich Dad Poor Dad is one of the books that come to mind Dave Ramsey’s Total Money Makeover David box was automatic millionaire another book that I read that really inspired me Tim Paris is 4-hour workweek there are so many books I wish I had my library here to show you all the books that I’ve read in my ears and I so many other books I want to read and I love it because my kids are always asking me dad or have you really read all those books because you know they’re my oldest is ten he’s like dad I hate reading I hate homework he’ll figure it out one day but I’m like yeah do like I’ve read all these books because these are all experiences that people have gone through before me and that I have I can learn from their mistakes and it’s just it’s also been a very very valuable life lesson teach my kids you know about reading and the importance of just getting education through other people’s experience whether that be reading books watching YouTube videos where that is but that is by far one of the best investments that I’ve made are the books that I’ve read whether it be the ten dollars I spent and also the time I commit to finishing and reading that book alright as you can see there are a lot of ways that you can get started with investing without a lot of money if you’re a beginner and want to get started you can buy a book educate yourself or you can commit to doing $a month into some investment account by mutual funds ETFs something something to get started have some links in the description of some blog posts we have that you can check out on some of our favorite online platforms that you can check out that don’t require a huge start up a huge amount of money get started so no more excuses key stop wasting your time and my time about how I’m going to get started here soon the soon is now get started now commit to start investing $50 a month get going do it jump bro is good punch will sense hey if you like this video do me a favor subscribe to the channel like it comment it share it do what you got to do let’s get people to start investing let’s get people to start taking charge of their financial future and get start today we’ll see you next time peace out you

How to start investing when you’re a beginner and only have small amounts of money, a.k.a. you’re “broke as a joke” was me many years ago.

I had barely little money to my name in my early 20’s because I was blowing it on junk I didn’t need.

Thankfully, I started an internship with a local investment firm and I started to learn a thing or two about investing.

This led to me making my first investment into a mutual fund which opened the door for so many things.

That’s why I’m a HUGE advocate for people to start investing even if you don’t have a lot of money to get started.

I started with only $25 per month into mutual funds.

Even though the mutual funds weren’t that good (I found this out later on) I still learned a ton throughout the process.

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These options let you pick the stocks, ETF’s or mutual funds YOU want to buy. If you want more control ✊🏼 then these are the ones to pick:

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✅ TD Ameritrade

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✅ Etrade

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Don’t want to mess with the stock market? Then take a look at Peer to Peer Lending giant Lending Club:

✅ Lending Club

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🎙 https://itunes.apple.com/us/podcast/good-financial-cents-podcast-investing-building-wealth/id775107294?mt=2

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