if you have $100 in your bank account and you want to turn this $100 into $200 or $11,000 or even $10,000 you have to know how to take this $100 and put it to work this is the art of investing money and unfortunately if you were not born with Rich parents chances are nobody taught you how to invest your money but that changes today because in this video I want to show you how you can invest that $100 in seven different ways that way now your money can start making you money even when you're not
working investment option one pay down your debt this one has the lowest risk because if you pay down your student loans or your credit card debt or your car loan or your mortgage one year early you get a guaranteed return on your money let's assume that you have $8,000 worth a credit card debt which is actually less than the average household credit card debt level in America today and your credit card is charging you 25% APR now the first thing you have to understand is if you take your extra money and use it to pay
your debt down you get a guaranteed return because if you pay off your credit card debt one year early that is a guaranteed 25% return which will beat pretty much every other investment out there in fact let me show you the power of this let's assume that you never swipe your credit card again you have $8,000 with the credit card debt and then you only make the minimum monthly payment of $200 a month now it's going to take you about 7 years to pay back this credit card debt and then you're going to end up
paying 9,379 $ in interest not in total payments but in interest on this $8,000 with the credit card debt which means you're going to pay more money in interest then you will to actually pay back the principal balance on your credit card option number two keep the $100 in cash this is another very low risk opportunity because you know that if you deposit $100 in your bank account today if you open up your mobile banking tomorrow you're going to see that $100 and at the time of me recording this video if you open up a
high yield savings account or a certificate of deposit CD you can get somewhere around a 4% return on your money which isn't the best but that money is sitting there and you don't really have much risk besides the risk that your bank could collapse or inflation I'll talk more about inflation later this means you don't have to worry about losing money per se and you know that after one year you should have around $14 in your bank account not the best return but it's better than you're taking this $100 and spending it on Avocado stuffed
animal oh the third way you can invest $100 is to put this money into a tax deferred retirement account something like a 401k or a IRA or a 403b when most people think about investing this is what they're thinking about because your 401k or IRA is the most accessible place to start investing and this is where most people start investing but this is just the beginning and there are five things that I need to understand about this number one the advantage of a 401k is if you can get a company match a company match is
where some companies will give you some free money essentially if if you invest your money to 401K so if you invest $100 into 401K a company might say we'll give you a 50% match meaning $50 maybe we'll give you 100% match $100 just depending on what your company offers but this is going to vary company to company the second thing you want to understand about a 401k or a IRA is that you are now logged in you generally cannot pull your money out without paying a penalty until you are at least 59 1/2 years old
can you access your money sure but you're going to pay penalties and fees if you tap into a 401 care Ira before you turn 592 years old number three you have to understand the tax benefits or non-benefits of a 401k in Ira there are two types of accounts you have Roth and traditional accounts this applies for IAS and 401ks a traditional is where you make money and then this money goes directly into your account so you make $100 and then this $100 goes into your 401 care Ira pre-tax so all $100 that you make goes
into the account then this money can go taxfree and then when you turn 60 years old you can start to pull this money out but then you're going to pay taxes when you're 60 65 70 and you start pulling this money out of your 401k Ira then you're going to pay taxes at whatever your tax rate is when you are retiring now what some people like to say is when I'm 70 years old I'm not going to have an income so my tax rate should be lower my concern is number one my goal is to
increase my income every single year through my investment so I'm hoping that I have more income when I'm older and and number two I have no idea what the tax rates are going to look like when I'm 60 or 70 years old I know that the government has a lot of debt and I know that there's a big chance that the government could be raising taxes in the future so when you take a traditional 401k or IRA just know that you're going to pay taxes when you pull the money out and we don't know what
that tax rate is going to look like with a WTH what that means is you're paying taxes on that money today so if you made $100 you're going to pay taxes on that $100 today and so maybe you're left with $80 after paying taxes and then this $880 goes into your Roth 401k or IRA and then this money can grow generally taxfree and then whatever money you have in this account when you're 60 65 70 years old you can pull out taxfree because you pay the taxes when the money goes in so with the Roth
you pay taxes when the money goes in with the traditional you pay taxes when the money comes out fourth you have to think about fees because when you put your money generally into 401K your money is going to go into some sort of mutual fund generally and these mutual funds even if it's an index fund or ETF all these funds have a fee it's called an expense ratio so if you didn't know that your 401k is costing you money your homework after this video is to go out and look at what your expense ratio is
the average expense ratio on an actively managed 401K fund meaning a mutual fund in a 401k is 1% now that might not sound like a lot of money but you have to remember this is a 1% fee on every dollar that is invested in your 401k for every year that your money is invested including every dollar of profit that you earn so this 1% fee is compounding along with your potential growth and this 1% fee can add up to a little over 25% of your total investment value over the life of your Investments so if
you were thinking you would have a million dollar excluding fees after fees you would have a little bit under $750,000 left in your account because you had to pay this 1% fee and then number five you have to think about options because we invest in a 401k or IRA you generally have limited options on where you can invest now yes you have more options with an IRA IRAs have a little bit more flexibility they give you some options to invest in real estate there are options to do that with an IRA with a 401k you're
very limited on where you can invest your money this is why one of the things I like to say is when you're investing your money your 401k in Ira is just the beginning this is not the end of your Investments this is just the beginning of where you start your Investments and now I can't recommend what I do to anybody else because my investing journey is unique and different and so is yours but for me I don't use a 401 care Ira because I know that I can get better tax advantages by investing my money
to things like real estate and into things outside of the 401K and Ira so I don't use these because they just don't make sense for me now they are a great place to start but this is where I want you to continue investing in your financial knowledge and financial education that way you can find the best investments that way you can get the best returns for yourself and before we move on to number four I want to remind you that my team at briefs media publishes a free daily newsletter called Market briefs where every day
my team is breaking down what's happening in things like the economy the stock market the housing market the crypto market and the global economy into a fund wiy an easy to read newsletter we have hundreds of thousands of investors that read it every single morning so if you have not joined Market briefs yet well I got the link for you to join for free down in the description below the fourth way that you can invest that $100 is about putting this money into the stock market now this is outside of your 401k Ira this is
now you creating your own stock brokerage account there are so many brokerages out there you can check out my links down in the description if you want to help finding some but now you're going to find a stock brokerage and now your goal is to grow your money through the stock market and there are two ways that you can invest your money in the stock market I like to call this a passive method and an active method passive is where you're just going to throw your money into the markets so there are funds ETFs mutual
funds index funds what this means is these are baskets of companies these are groups of companies so instead of investing in say the Amazon stock you're investing in a group of maybe 500 of the largest companies in the stock market and Amazon is one of them this way now you don't have to worry about analyzing the perfect company and picking the perfect stock you're just going to throw your money into a fund this is what I call passive investing and the way that you succeed as a passive investor is you got to CP you got
to be consistent you got to be passive and you got to be automatic with this what this means is you want to pick a Cadence whether it's every week or every two weeks or every month and then we you just put your money into these funds and you let the markets do their thing so I do this and I do this for me my CPA strategy is every Wednesday I picked Wednesday because it's in the middle of the week There's No science to this but every Wednesday money is pulled out of my check-ins account and
it's automatically invested into my portfolio of funds now I have funds that give me exposure to a lot of different things some to the General stock market some to dividends and some to a little bit more Innovation but this is where my money is being automatically invested and you just got to figure out what types of funds you want to invest in because there are funds for pretty much everything for example there is an ETF and I'm not telling you what to invest in I got to remind you as well investing has risks you are
never guaranteed to make money when you invest in fact you will lose money at some point so make sure you always do your own Duty legence and never blindly trust a random guy on YouTube there's an ETF out there called vti This is created by an institution called Vanguard and this gives you exposure to the total stock market so if you just want to buy the American Stock Market vti gives you exposure to the total stock market another example spy this is an ETF that gives the exposure to the S&P 500 which is a group
of the 500 largest companies in the stock market so if you just want to invest in the 500 largest companies in America that are trading on the stock market spy you can create a system that invests into this and what we've seen is that over the long term markets go up markets go down Market crashes happen recessions happen Market booms happen but over the long term markets have generally gone up and this is where you just got to see CPA through the ups the downs and the sideways consistently even through the tough times and that's
where the wealth is built active investing is a little bit different this is where you're going to put aside some money and then you're going to actively find a good investment now when I say active I don't mean trading I mean looking for a good investment this would be now you're looking for either a fund or a stock to invest in that's a little bit more Niche maybe you're looking for a new market shift you're looking for an opportunity you're looking for something to invest in but now you got to study the financials you got
to do the research and you got to put in the time to make sure that this is the investment that you want to be involved in but it's not automatic you have to go and deploy this money if you see a good opportunity again you don't have to pick one I do both of these but you got to find the right strategy for you the fifth way that you can invest at $100 is into passive real estate so just like with the stock market you can invest in real estate actively or passively and I specifically
said for this example talking about passive real estate because active real estate requires more work and more money Act real estate real estate investing is when you go out and you buy a property it could be a single family house it could be an apartment complex an office building A manufacturing building whatever it is you're going to go out and buy this property and then lease it to a person a family a business whatever and they're going to pay you rent for using a property that is active real estate investing and that's going to cost
you more money you might have heard people talk about no money down real estate does it exist absolutely but I'm going to tell you the reality about no money down real estate no money down real estate has made me a lot of money because people will go into no money down real estate thinking that it's so easy I can buy properties with no money no credit no experience and then people get in way over their heads they take on way too much debt they don't know how to manage the property the banks Force you now
to sell that property at a huge loss to somebody like me so yes no money down real estate has made me a lot of money because people who do it who don't know what they're doing have to sell those properties at a huge discount which is why I am not an advocate for you to do no money down real estate I rather you if you just get getting started and you only have $100 to consider more passive real estate once you have more money and you want to be more involved go out and be an
active real estate investor it is a great opportunity but it takes more work and more money okay so now when we talk about passive real estate this is where now you can use a crowdfunding service or you can be involved in Syndicate real estate deals where you find somebody else who is doing the deals and you were going to give them some money and yes you could do this with the little as $10 $100 sometimes going to want more money but it just depends on the deal it depends on the operation you could go to
a real estate investor conference in your area to happen all over the country and the world and you can meet investors that need money because there's always going to be investors and developers that need money for a deal you can fund them directly or you can use different services online there are crowdfunding services online that you can invest into that you will get exposure to these deals and now you don't have to worry about dealing with tenants you don't have to worry about unclogging toilets you don't have to worry about dealing with the city or
property managers you just invest your money and then you can see your Returns on your portal again is there a risk involved absolutely because you're investing in real estate real estate goes up and down and there's issues that are involved but you don't have to worry about being active when you are a passive investor and you can start investing with much less money so if you want to get exposure to real estate that's something that you can consider and if you're wondering where you can do that again you can check out some of our advertisers
that help you with this type of crowdfunded real estate down in the description the sixth way that you can invest the $100 is into speculative assets the things like cryptocurrencies startups trading cards these speculative assets are the exciting part of the investing world this is what some people assume investing it should be like that it should be so exciting and energizing and crazy markets go up and markets crash all the time but the reality is and I'm going to say this I'm I sound like a really old person your speculative assets should be part of
the speculative piece of your portfolio Okay and what that means is if you're just getting started probably less than 10% of your total Investments should be speculative maybe as he build more wealth and he build more Foundation of your other Investments now you can kind of push it up closer to that 20% but that's kind of it because your speculative Investments can go up very quickly but they can crash just as fast so for me I don't want to take on all that risk yeah I get it it's fun and I invest in some startups
and I invest in some cryptocurrencies and I know that they can go up just as fast and I know they can fall just as fast but for me I know that this is speculative so I keep it as a smaller piece of my portfolio because I know that St St and real estate have impr proven through the test of time and so those are the bulk of my investments the speculative Investments are treated like speculative investments in my portfolio the reason why I say this is because I've met a lot of people especially younger people
that are struggling with money you're living paycheck to paycheck life is hard inflation is hard I get it and now you want to get started with investing and you start to hear about how stocks and real estate they can give you 7 10% returns a year over the long term but it doesn't sound that good because if you $100 that's a $7 return or a $10 return after one year and so now you start to look for something a little bit more exciting with a little bit more upside some people turn to sports betting and
other sorts of gambling some people turn to things like crypto or meme stocks or or other types of speculative Investments hoping that they can double their money quickly can it work absolutely but now you're taking on a lot of risk and if you're really trying to build wealth your wealth is going to be much more sustained through things that have been proven now I'm not saying don't have any speculative investments just understand what is speculative what's not that way you can weather the storms when they go up and down because the reality is markets go
up and markets go down we've seen this happen decade after decade after decade and when you're talking about speculative assets well those go up even faster and they can fall even faster and if you can't withstand the psychology then you're going to be stuck in a lot of pain and then option number seven is to invest this $100 into your own business my largest investment is my business briefs media briefs media spun out as a byproduct of minority mindset I started minority mindset with less than $500 and I save $500 as a kind of a
big cushion because when I started minority mindset I didn't have a camera I didn't have any fancy editing software I didn't have a fancy mic all I had was a $25 or $35 tripod that I bought off of Amazon I recorded the videos off of my phone and then I think I bought a $25 or $35 light I don't remember what my other expenses were but just going to round it up to $500 but I started off like that eventually this brand started to grow started to make some more money which then started to build
briefs media and that started to grow and now we have a beautiful office in downtown Detroit we have a team of Market analysts and employees that are working every single day and it all started with a small investment but a lot of time a lot of headache a lot of work and a lot of stress and you got to be willing to go through the ups and downs but if you're willing to do that if you're willing to learn if you're willing to to apply things watch YouTube videos read books take classes and reinvest the
money that you make you can start to see more larger returns I mean there's no investment that can give you better return than your business but it's risky I mean most businesses fail they say 90% of businesses fail within the first 5 years but maybe that means you got to start five businesses to really figure out what it takes and this is where if you are an entrepreneur this can create a great opportunity for you if you're willing to go through that process it's not for everybody I'm not saying everybody needs to start a business
and most people shouldn't start a business you don't need a business to build wealth but it is an option if that's something that has been on your mind is something that you want to do you can start a business and use your money to invest a seed Capital into your own business and maybe it'll work but at the very least you're going to learn something and those are the seven ways that you can start investing $100 today which one is the most interesting to you let me know down in the comments I can't wait to
read what you have to say Buy Low sell high but what do you do in an economy like today where markets are setting record even though many people are still concerned about the economy and now investors are hopeful that Trump is going to save the economy and boost the stock market so is this the time to double down and buy even more or is this the time to sell high and cash out of your profits
