How To Invest $1,000 in 2024 (STEP-BY-STEP)

0:00When you need to build up your team to handle the growing chaos at work, use Indeed Sponsored Jobs. It gives your job post the boost it needs to be seen and helps reach people with the right skills, certifications, and more. Spend less time searching and more time actually interviewing candidates who check all your boxes. Listeners of this show will get a $75 sponsor job credit at Indeed.com slash podcast. That's Indeed.com slash podcast, terms and conditions apply. Need a hiring hero? This is a job for Indeed Sponsored Jobs. Chronic Migraine is 15 or more headache days a month, each lasting 4 hours or more. Botox, on a bot to line Mtoxin A, prevents headaches and adults with chronic migraine before they start. It's not for those with 14 or fewer headache days a month. It prevents on average 8 to 9 headache days a month, versus 6 to 7 for placebo. Prescription Botox is injected by your doctor. Effects of Botox may spread hours to weeks after injection causing serious symptoms. A lurcher doctor right away is difficulty swallowing, speaking, breathing, eye problems or muscle weakness can be signs of a life threatening condition.

1:00Patients with these conditions before injection are at highest risk. Side effects may include allergic reactions, neck and injection site pain, fatigue and headache. A lurchic reactions can include rash, welts, asthma symptoms, and dizziness. Don't receive Botox if there's a skin infection. Tell your doctor your medical history, muscle or nerve conditions, including ALS Lugeric's disease, Myasthenia Gravis or Lambert Eaton Syndrome, and medications, including Botulinum toxins as these may increase the risk of serious side effects. Why wait? Ask your doctor, visit BotoxCronicMigraine.com or call 1-800-44 Botox to learn more. This episode is brought to you by State Farm. Listening to this podcast instead of doom-scrolling? Smart move. Another smart move? Getting help from one of State Farm's 19,000 local agents when you choose to bundle home and auto. Bundling. Just another way to save with the personal price plan. Prices are based on rating plans that vary by state. Your jobstions are selected by the customer. Availability, amount of discounts and savings, and eligibility vary by state. Hi guys, it's Mark said today. I've got a family friend named Laura coming round to help me film what she thinks is a

2:03normal how to invest for beginners video. However, I'm going to be gifting her $1,000 as well as arming her with the knowledge she needs to take the plunges as a complete beginner investor so she can start her journey to becoming rich and financially free. There's an old saying, be the person you needed when you were younger. And that got me thinking, sometimes with investing, the hardest part is just making a start. So if you're thinking about investing but find the whole process a bit daunting, or have started and want to find out some more, then this is the video for you. We're going to be going through everything step by step from personal finances and taxes to investment strategies and they're actually setting up the core account. So make sure to watch to the end so you don't miss out on some great investment knowledge. You'll get started as soon as you hit that like button for the L2 Ugarithm. So Laura, what do you think when I say the word investing? I get a little bit scared and it's the way to go. I'd love to learn a bit more about it and put my money in the best place but if I'm honest

3:06I don't really know how much it all. Well it's normal to be a little bit scared, that's for sure. Judge of Bire Analytics, not many girls are that into investing. Why do you think that is? I'm not really sure why that is but I'd like to learn a bit about it and show that it's possible for anyone to do and use it as a way to get rich. Well it's not all about getting rich, it's more about building your long term wealth but we'll get into that later. What? I was here to get rich. I'll tell you what I can do, how about this? I'm going to give you a thousand dollars to invest in anything you like. That sounds really good, thank you. Let's get going. I think we should. Let's dive in. People always say to me that they'll get good at managing their finances when they earn more money but the truth is anyone can go broke even celebrities. You know take Michael Jackson for example he was the king of pop with an estimated estate value of over 236 million dollars when he died but he left debts of over 400 million dollars. So Laura how would you say your finances are at the moment?

4:08I'd say they're okay, I don't look into them too much if I want to go out for a meal. My friends I'll spend the money but I do try to save about half of what I earn. I just don't really tend to track it. Okay well tracking is a really good idea and it's really easy nowadays to track your money using some of the apps that are available and by tracking it you'll tend to spend less so that's always good. But do you have any credit card debt or anything like that? I don't I spend my money on my credit card but then I do pay it off every month. That's great you've been watching the videos haven't you? Yes. It's always best if you use your credit card because it'll help you build your credit score and if you pay it off at the end of every month you're going to pay no interest whatsoever and it's a win-win. Okay so why is building your credit score so important? Well at some point in the future you're going to probably want to borrow. Be that for a house or for a business you never know what you want to borrow for and if you've got a good credit score it's going to cost you a lot less in interest fees

5:08and you're going to find it easy to borrow in the first place so that's why it's so important to build a good credit score. Okay. Taxes are something we should all care about as at the end of the day why would you want to give away more of your hard-earned money than you absolutely need to. When it comes to investing in most cases you are required to pay taxes on the profits that you make. This is called capital gains tax and it's between 10 and 20% depending on your income. It's really important to minimise the tax you pay in these areas so you're able to invest more for your future and there are two really simple ways that you can take action. Now the first is to open up a tax advantage to account and the second is to start some sort of side hustle or business so you can write off all your expenses. Why is the side hustle a good thing to have? Well it's all about when you pay your tax. If you get paid $100 for example from work and you want to go out for a nice meal well it's all well and good but you've already paid your tax haven't you? So that's 20% 20 dollars is already gone.

6:11Now with a side hustle you get your $100 and you want to go out for a meal you can go out for a meal and you can then write that off so when you come to pay your tax you've got less money to pay your tax on so you get taxed less. Is that like bad? So 100% allowed because you're having a business dinner you're talking business and that business needs to be done over a dinner so that is an allowed thing. Yeah that sounds really good. I have been thinking about doing a side hustle for a while now I think that's always something I wanted to do in the back of my mind but I haven't actually got around to it. It's just deciding what I want to do. I've been thinking about a lot of things like I love seeing how people can do like gym shark, modelling on the side and being a bit of an influence like that sounds amazing to me. It's extremely important to research any investment before throwing all your money in. Don't worry if you heard of any before and is there anything you've invested in? I haven't invested in anything obviously I hear a lot about like crypto current scenes,

7:14stocks and shares but it's all like a completely different world to me and I don't know anything about it but I know that my money isn't very good. I'm just sitting in my bank account and I want to do something with it. Well your money sitting in your bank account is actually losing you money because you'll probably earn in about 0.1% interest per year and that literally is nothing and with inflation more than that around about 2% to 3% a year that's actually losing value year on year. I think the thing that I was looking at doing is buying a vital out of something. Okay well we can discuss that and run through the main investments which are good for beginners. In order of least to most risky so you can... When you need to build up your team to handle the growing chaos at work use indeed sponsor jobs. It gives your job post the boost it needs to be seen and helps reach people with the right skills, certifications and more. Spend less time searching and more time actually interviewing candidates who check all your boxes. Listeners of this show will get a $75 sponsor job credit at indeed.com slash podcast.

8:19That's indeed.com slash podcast. Terms and conditions apply. Need a hiring hero? This is a job for indeed sponsor jobs. Chronic migraine is 15 or more headache days a month each lasting 4 hours or more. Botox on a botulinum toxin A prevents headaches and adults with chronic migraine before they start. It's not for those with 14 or fewer headache days a month. It prevents on average 8 to 9 headache days a month versus 6 to 7 for placebo. Prescription Botox is injected by your doctor. Effects of Botox may spread hours to weeks after injection causing serious symptoms. Alerture doctor right away is difficulty swallowing, speaking, breathing, eye problems or muscle weakness can be signs of a life threatening condition. Patients with these conditions before injection are at highest risk. Side effects may include allergic reactions, neck and injection site pain, fatigue and headache. Alerture reactions can include rash, welts, asthma symptoms and dizziness. Don't receive Botox if there's a skin infection. Tell your doctor your medical history, muscle or nerve conditions including ALS Lou Gehrig's Disease, Myastthenia Gravis or Lambert Eaton Syndrome and medications including botulinum toxins as these may increase the risk of serious side effects.

9:21Why wait? Ask your doctor, visit BotoxCronicMigraine.com or call 1-800-44 Botox to learn more. This episode is brought to you by State Farm. Listening to this podcast instead of doom-scrolling? Smart move. Another smart move? Getting help from one of State Farm's 19,000 local agents when you choose to bundle home and auto. Bundling. Just another way to save with the personal price plan. Prices are based on rating plans that vary by state. Your jobstions are selected by the customer. Availability, amount of discounts and savings and eligibility vary by state. And then decide what you want to do with that $1,000 I gave you. Oh wow, okay. So the less risk it is. Generally, the less reward. Okay. But the higher risk? The faster the reward. Now, an index fund simply put is a basket stock. So instead of buying hundreds of different stocks separately and having to manage them all at once, you can buy into a simple low-cost index fund.

10:21Do you get to choose what stocks they are? No, you don't get to choose what stocks they are, but you can choose from a lot of different index funds. Okay. And does it matter what country you invest in? Back when I was younger, I might have gone for an index fund based in the UK. But of course nowadays, with the invention of the internet, of course, these companies in America are absolutely global. So they're always looking for more growth, be it in China or Australia or wherever it happens to be. So by investing in these American companies, you've got a global player there, haven't you? And they're passively managed as well. So there's not a manager there. It's all done automatically. That's why they're costs are so low. If I invest all my money in a risky one, could I then lose it all? And it sounds like a silly question, but could I lose more? Could I go in debt or something? Well, when you invest, your capital is always at risk. You have to remember that, but hopefully over the long term, it would be good. Now, unless you leverage your money, you can't actually lose more than you invest.

11:24So if you invested, for example, $100, the most you can lose is $100. However, if you leverage your money and bought things on margin, then of course you could lose more than you actually invested. OK, what does leveraging your money mean? Well, leveraging your money is when you borrow money against your investment or is also known as margin. So for example, if you invested in a share, so you wanted by $100 worth of shares, but they were often you two and a half margin, you could actually have another $250 to go with yours. You'd actually have an investment of $350. Of course, then you could lose that whole $350. Next is investing in yourself with a side hustle or further education. This is a low risk because the power is in your hands. Starting a side hustle has limitless potential returns, which is exactly what you want when

12:26you're trying to build wealth. So does this sound like an option to you? Yeah, it sounds really good to me. I like the idea of investing in myself, not just getting my nails done and I actually want to obviously, but doing things like university, but it's kind of, you don't see the return straight away. So how have you found that coming from university into the workplace? So I feel like just with my degree, didn't get me a job. You have to have other employability skills as well. And a lot of places often want a lot of experience and a lot of time in things that I haven't had time to do. So I definitely see the value in investing in yourself and enhance your skills to make you more employable. You've also thought about a mentioned side hustles as well. So of course you've been investing to that. I do love photography, bit of videography. I've already, my mum's friend had a wedding and she didn't have a photographer, so I hopped in last minute and managed to do that a bit of video as well.

13:26And did you do that as a paid job? I did it for a bottle of gin. So you're cheap then, that's what you're saying, aren't you? No, I did it for free. Well sometimes that can be a really good investment as well. When you do a job for free, you're building up a portfolio. And again quite often you need to do three or four jobs to build that portfolio up. So when you do want to charge people, you can show them exactly how good you are. Next up we've got individual stocks, which are a medium risk. An individual stock is investing into one specific company. For example, Amazon would be considered an individual stock. The returns can be higher as it brings more exposure to one investment, but stocks can go either way. So I only invest in individual stocks with high conviction. So a stock with high conviction does that mean that it's going to give you a big return? And that's why you invest in those ones. Well what it means is that you've done your homework on the individual stock.

14:27You've looked into the fundamental analysis of the company and you can see that it should give you a high return over the long term. So fundamental analysis, that sounds a little bit complicated. Well actually it's not complicated at all and you can find out all this information on Yahoo Finance and you can pull up the company you're interested in and look at their balance sheets and things like that, that profit and loss and where the company is going. And also it's important to look at the leadership of the company as well. Okay. Next we come to real estate and I'm putting this as high risk for beginners. As real estate often requires a mortgage which can mean taking on quite a substantial amount of debt. However real estate is a great way to accelerate wealth and often performs really well during inflation. I've always looked at Airbnb and I'd love to do that kind of thing. If you're looking to do Airbnb you've really got to make sure that that property can stand on its own without that platform because that platform was to go overnight.

15:28You need that property to still be paying you money to pay your mortgage. For me buying a place to rent out whilst you're still living with your parents is almost a no brainer isn't it because it could bring you in a lot of money. That sounds really exciting. Actually everyone in awake off and I look on right and even I think, oh, good I get. Now cryptocurrency and Bitcoin specifically has been the best performing asset over the last decade. When you need to build up your team to handle the growing chaos at work, use Indeed Sponsored Jobs. It gives your job post the boost it needs to be seen and helps reach people with the right skills, certifications and more. Spend less time searching and more time actually interviewing candidates who check all your boxes. Listeners of this show will get a $75 sponsor job credit at and D.com slash podcast. That's indeed.com slash podcast. Terms and conditions apply. Need a hiring hero? This is a job for Indeed Sponsored Jobs. Chronic Migraine is 15 or more headache days a month each lasting four hours or more. Botox on a botulinum toxin A prevents headaches and adults with chronic migraine before they

16:33start. It's not for those with 14 or fewer headache days a month. It prevents on average eight to nine headache days a month versus six to seven for placebo. Prescription Botox is injected by your doctor. Effects of Botox may spread hours to weeks after injection causing serious symptoms. Alerture doctor right away is difficulty swallowing, speaking, breathing, eye problems or muscle weakness can be signs of a life threatening condition. Patients with these conditions before injection are at highest risk. Side effects may include allergic reactions, neck and injection site pain, fatigue and headache. Alerture reactions can include rash, welts, asthma symptoms and dizziness. Don't receive Botox if there's a skin infection. Tell your doctor your medical history, muscle or nerve conditions, including ALS Lugeric's disease, myosthenia, gravis or Lambert Eaton syndrome and medications, including botulinum toxins as these may increase the risk of serious side effects. Why wait? Ask your doctor, visit BotoxCronicMigraine.com or call 1-800-44 Botox to learn more. This episode is brought to you by State Farm. Listening to this podcast instead of doom-scrolling? Smart move. Another smart move? Getting help from one of State Farm's 19,000 local agents when you choose to bundle home

17:36and auto. Bundling. Just another way to save with the personal price plan. Prices are based on rating plans that vary by state. Other options are selected by the customer. Availability, amount of discounts and savings and eligibility vary by state. Aid. Is that why cryptocurrency is very popular? Cryptocurrency at the moment is very popular because it's volatile and the returns potentially could be right up there, but likewise they could be right down here as well. So it's very exciting at the moment. It looks very scary. It is scary. I like to invest in what I now like to call blue chip cryptos, which are Bitcoin and Ethereum and a bit of Cardano as well. And I see those as being more stable than some of the others. So is it good to keep track of what which ones are doing well or as you say, it could go through the roof or rock it down? Do you know? How do you know which one is best?

18:37Well, the problem we're looking at how well a coin is doing, particularly if it's one that's just been brought into the market, is that coin can be pumped and dumped. Now, what I mean by that is you can get lots of influencers, lots of people around the globe that go, yeah, this is the best coin to buy, buy, buy, buy. And they're all in on it. When it gets to a certain point, they'll dump that coin and they'll make their profit while you're left. Oh no, my coin's not worth anything. So why would someone actually buy a Bitcoin and understand it goes up in value? What is it used for? Well, actually Bitcoin is like a store of value. Once they're all mined, there'll be 21 million as a maximum number of Bitcoins available. So, yeah, yeah. A lot of people think that Bitcoin miners are basically people that are rewarded for maintaining the network and that you do that by using powerful computers to solve all these complicated equations. And that's the reward they get. Okay. So, now it's time to make your decision.

19:38You've got a thousand dollars. Where are you going to invest it? What are your thoughts? So, what I'd like to do there is have an index one and then have an individual stocks and also crypto. That sounds like a solid start to your portfolio to me. So, let's get your account set up. Now, if we were in the USA, you could set that up with public.com. Who are often a free share worth up to a thousand dollars at the moment. But because we're in the UK, we're going to do it via free trade and they're offering up to a 200 pound free stock at the moment. We'll leave the links in the description if you're interested and you can pick those up. Anyway, if you've got your phone with you Laura. I do. Okay. So, I've worked out that a thousand dollars is 730 pounds. So, I'm going to send that right through to you now. Bosch, how do we want to split that up? So, I was thinking 300 into the index fund and 200 into Tesla. I have quite a lot in Tesla myself. So, in we go, so we're going to go 200 pounds on it by order for Tesla, all done.

20:43So, you're going to work tomorrow and you can say, I own Tesla, how about that? That sounds really good. So, let's get your index fund sorted. So, you want to go into the S&P 500, which again, I'm a firm believer in, as you know. So, let's go in and select that and we are there. There you go. You've got an index fund set up. All you need to decide now is how much you want to fund that per month. You don't have to fund it, but if you do, that would be really good. Okay. So, now we have to set up Laura with a coin-based account so she can buy the crypto currency that she wants. So, again, we go to one of my videos and we can press the link in the description. Because that way we get $10 worth of a free Bitcoin. There we go. Welcome to Coinbase, all up and running. Oh, it has a minus number. That's on the value of Bitcoin at the minute today. So, today it's gone down a little bit. You'll have to get used to that because if you're buying cryptocurrency, the fluctuations are huge

21:45and some days you could have plus 10% and another day minus 10%, you just never know where it's going to go. Okay, so we put the order in for Ethereum. We're going to go 230 pounds. Here you go. Woo! I can't wait to see how it works out. You're part of the crypto-mania craze. If you'd like Laura to come back on the channel and share a result, then just let us know in the comments down below. So, I'm going to leave the next video right up there, but don't click on it just yet. Make sure to subscribe to the channel if you want to grow your wealth. And don't forget to pick up your free stocks and Bitcoin with the links below. Okay, I'll see you over there.

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