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Want to "invest" but have no idea what that meant or how to do it? In this video, I'll walk you through the basics!

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Roth IRAs: https://www.nerdwallet.com/best/inves...

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The first investment I recommend is in a emergency savings! This is in case you lose your source of income. I would have at least 6 months worth of living expenses tucked away. Make sure this money is EASILY accessible. A high interest (savings) account would work best.

The next investment I would make is in paying down high interest debt such as student loans, credit cards, medical bills, etc. Keep in mind, I wouldn't necessarily pay off low interest debt, let me explain. Imagine you have $20,000 left on car loan and you are thinking about paying it off. Hold on! If the interest rate is low (~3%) I would actually invest that $20,000 into the market (I'll explain later) and you can make 10-15%!

Ok up next is retirement. I would recommend what's called a Roth IRA. An IRA is simply an account you put money into each year (usually $6000 max) and that money gets invested for you. Over time, that money grows and by time you retire, you'll have a big old stash of money waiting for you. Here's the cool part though. You don't get taxed on any gains (profits) while the account grows over time. You only pay taxes when you retire and start pulling your money out! Confusing? Imagine you buy a damaged car for $6000, fix it up and sell it for $12,000. That's a profit of $6000 that you MUST pay taxes on for that tax year. The tax money you save in a Roth IRA, compounds and grows over time, making you MORE money.

A 401k is another retirement account I would highly recommend. A 401k account is another retirement account you put money into each paycheck and it grows tax free over time. The catch is, it's only offered through your job and some companies don't offer this benefit. You NEED to reach out to your HR department to see if they off 401k, but more importantly, if they match contributions. If they match contributions, that's FREE money for you. The main difference between Roth IRAs and 401K's, is that 401k contributions come straight out of your paycheck, BEFORE taxes (gross pay). This is a good thing because if it were AFTER taxes (net pay), a 5% contribution would be less than a pretax one.

Have you ever heard of the terms stocks, shares and equity? I promise it's easier than you think! You can make a significant amount of money with almost no effort. Imagine companies like Microsoft and Netflix want to sell small pieces of their company to anyone who wants to buy them. These pieces have value ($) and you can buy and sell them throughout the business day. That's what "stocks" are and the pieces of the company you can buy/sell are called "shares". You can buy them on apps like Robinhood and Webull.
How do you know which stocks to buy? The nice thing is, you don't need to think about it that much. There are these things called Exchange Traded Funds or "ETFs", which you can also buy on the apps I mentioned. They're just a collection of different stocks. So you basically buy a single ETF (as many shares as you want) and behind the scenes, you're investing in dozens if not hundreds of different companies. The companies are usually chosen by experienced investors. The ETF I recommend is Vanguard 500 Index Fund or "VOO". VOO is a collection of 500+ different companies and has an average annual return of ~15%. It's as simple as downloading an app, signing up and tapping a few buttons to purchase ETFs.

Cryptocurrencies are another investment I would invest in. I tell my friends and families to invest 5% of their investment money into crypto. Which ones? I have a separate video that talks about that, but in short, stick with the popular ones like Bitcoin (BTC) and Ether (ETH).

I would NOT recommend real estate as an investment if you are new to investing. It requires a significant amount of time and money (crazy housing market).
Instead, invest in your career and skills. You can easily increase your salary by 10-20% by simply moving to another company. If you are at a dead end job, invest in the skills required to transition to a new career. If you make more money, you can invest more money and the faster you can quit your day job and focus on the things you WANT to focus on.

*** This video is for entertainment purposes only and should NOT be misconstrued for financial advice. Please engage with a licensed financial advisor before investing your time and money. The links above may include affiliate commission or referrals, which I may generate revenue from.