Money Machine A Beginner's All-Ages Guide to Stock Market Investing & Building Passive Income – M...

Introduction an investment in knowledge pays the best interest Benjamin Franklin purpose and value of this book this book is designed to work as a reference and guide to provide you with insights from the best investors on Earth so that you can create and Implement an investment strategy that will make money work for you in the words of Robert kosaki This book is intended for those who have never invested as well as those who are already dabbling in the market this book will help you cultivate a wealth focused financially smart mindset and will teach you tips

tricks and skills that you can use to expertly manage your money and create a money machine that works 24/7 365 days a year to build wealth for you and your legacy the money machine metaphor refers to a wealth producing system that works passively and is built From a broad portfolio of held Investments That compound and produce a stream of income this book leverages and condenses the insights and lessons from Giants in wealth production and financial guidance this Labor unintensive Guide combines and condenses this Sage advice into one pithy guide saving you time money and mental

energy while providing you access to the lessons of top earners and teachers in investment and Moneymaking my story to quote a well-known Us song I wish I knew what I know now when I was younger 10 years ago when I began investing knowing the information I will provide to you in this book would have saved me a lot of energy and disappointment I may not have fallen into the same Financial pitfalls specifically around my investment property had I known then what I know now this is the go of this book to share the wisdom I

have gained through my own Experience investing as well as the knowledge I gained working as a project manager for the global us institutional bank at State Street combined with the wisdom of other Financial Giants to provide a condensed comprehensible and effective guide to investment and money-making this book will give you Insider access to the information habits and strategies that I learned and tested in my work in the world of Investments I will always be a student In this area though as many of the greatest Financial thinkers would seem to agree Financial education is always an

ongoing process however this does not mean that I am not equipped to also be a teacher I am passionate about distilling what I've learned in my research and practice to inspire people of all ages across the world to cultivate an appetite for financial knowledge and to use this knowledge to take the lead leap into the realization of their wealth Production potential I want others to become as excited as I am to be a lifelong Learner in personal money management and to continue to pay this information forward the key benefit of this book Lies in the

pool of Knowledge from which its lessons are drawn this book provides a condensed and simplified collection of knowledge advice and techniques from Financial experts across a range of disciplines this book brings together and puts on a silver platter For you the wisdom of the most successful investment experts including Jack Bogle Benjamin Graham Peter Lynch Robert kosaki Warren Buffett Ray doio and Carl icon this book will serve people of all ages and circumstances who want to access and implement the most secure simple economical effective enjoyable strategies and practices for making your money work for you this

guide will provide you with the groundwork you need to take hold of your Financial future and build your net worth this guide will help you recognize and seize control over your fears and Foles giving you a guide to mimic the habits of financial experts disclaimer I am not a financial adviser while I have gained Financial knowledge and know how through my own experience and self- teing I am not a professional expert the information and tips included in this guide are meant as advice based upon my own experience and are not a Guarantee of financial success

this book contains affiliate links if you use these links to buy something we may earn a commission thanks thank you from the author Sensei Paul David before we dive in I'd like to thank you for picking up this book your time is valuable and I know there are many of similar books out there but you chose to invest in mine and that means everything to me now that you're here and if you stick with me I promise to make our time together Valuable and worthwhile in the pages ahead you will find some areas of information

and practices more helpful than others and that's great because as you apply what works best for you you will benefit from an exciting transformation of character and knowledge enjy forward Sensei Paul David Sensei Paul David gained much of his financial knowledge working as a financial services project manager for State Street global bank for seven years he has also gained personal experience and financial expertise through his experience with investing for more than a decade in this book Sensei Paul takes the wealth of Financial and investment knowledge he has gained in his professional and personal life through

his own experience and learning from the greats to offer the reader a simplified version of the seemingly complex investment Concepts such as compounding And Market fluctuations he teaches the reader how to model stock picks after famous experts without having to be an expert yourself Sensei David's method is to teach the reader how to transform the uncertainty they have about risk into a curiosity to learn and form the habits necessary for continuous Financial self-education I learned the hard way so you don't have to in my early 20s I worked very hard to aggressively save my Money

for years I spent a while investing in mutual funds at this point in my life until I realized how fees were eating away at my wealth and disavowed mutual funds forever in my efforts to increase my wealth through investing I took the advice my father gave me to invest all my savings into a house fixed that house up and then rent it to build equity at that point I didn't know anything about investing in property and believe that my father Would take the Reign advising me throughout the process I followed his advice without question I

spent over a year searching for a home to purchase looking at over 80 homes in various cities learning as much as I could in the process at 27 I finally found the home that seemed perfect it was a fixer upper Bungalow in a strange part of a far away suburb from the outside the house was an all brick jam it was settled in a smaller subdivision near a Local General Motors plant in my naivity I thought this was the perfect location in a quaint area near a seemingly ample supply of qualified and interested renters I

dedicated all of my free time I could find outside of my full-time job three cities away to renovating the home I renovated the main floor moderately and focused most of my energy fixing up the basement I created a beautiful comfortable two family dwelling with zero experience with only my wit my Mother my friends and unimaginable stress covered by Smiles I managed this seat with almost no investment in renovations after only one year I realized my renters had declared war on each other a landlord's worst nightmare had come true my tenants were using my home as

a Battleground to exact revenge on another in their Feud there was a kitchen fire income checks were stolen from and by both families this was before direct deposit was the norm Garbage was strewn all over the property and both families refused to pay rent having no money I had to learn quickly how to act as my own lawyer I took both families to small claims court to force them to pay what they owed me I was also forced to call the Marshall to have both families removed from the property so I could begin repairs I

had won both battles but I was Far From A celebratory mood to top off this horrific experience one day while I was cleaning the now Empty house I found that the tenants had made threats against me and I was forced to call 911 this whole experience took so much out of me that my family doctor recommended I go and leave from work to get my life in order and I took her advice it took another full year year to sell the house after both families were removed and the property was repaired at the end of

the day I had lost three years of my life all of my investment And my confidence it took me a long time to recover emotionally and financially from this experience but I decided not to be defeated I picked myself up and learned another way to invest I learned how to make passive income without the anxiety of an All or Nothing approach like what my father had advised I realized what my father had taught me was not the way for me at this point in my life I now know more than my father may he rest

in peace could have ever Taught me about wealth management an old adage says you teach the business you know and my experience has proven this true now after personal experience gained from bad and good Investments self- teing and my career I am here to offer to teach any who are genuinely curious and understandably cautious as I was when I was a financial novice the business I know and am continually learning this book is written to speak To beginners understanding that this is a new territory for you to explore luckily the pattern of success in this

area leaves Clues it is these clues that I have tested and will share with you in this book My Hope Is that you will take this knowledge and put it into action in your life the most success investors on the planet all believe that there's no time to waste when it comes to getting started on investing so let's begin what this book gives the reader this book Promises to provide the reader with four things one a single resource for a streamlined synopsis from many of the most successful investment books and using the most successful investor

strategies two a path to action which includes the mindset and broker tools you need to consider and advice on how to hold on to more money by avoiding long-term fees three a simple resource guide written in plain English to support and Coach you every step of the Way whenever you need advice or Insight four a free specialized bonus guided meditation to recap the finer points of this book in a faster and easier way than ever before chapter 1 introduction don't gamble take all your savings and buy some good stock and hold it until it goes

up then sell it if it doesn't go up don't buy it Will Rogers 1.1 what is money money is the Representation of the exchange in value for consumers value means the quality of a product or service for example the amount of labor and or time required to make it the quality of materials used or the Rarity or desirability of the product or service this is why higher quality objects that are more highly sought after cost more money for business owners value is the ability to help solve or prevent problems as quickly easily and economically as

Possible for example it is the ability to repair failing Equipment Technology or systems it is also the ability to invest in new Properties or equipment or employees of a business to keep Pace with demand 1.2 what is investing investing is a venture often an adventure in helping many types of companies add value to many customers when you invest in various companies you get to write piggyback on these Companies long-term successes to receive little gifts of money that you give to more companies to receive more and more gifts of money over and over again you become

part of a community of financially educated people and can share your future experiences and learnings with others to help them learn about investing as well 1.3 why is this book important in investing you'll want to First understand the following learn to manage Your money yourself to cut down on the fees and taxes you pay to advisers achieve financial literacy and learn to feel comfortable dealing with your finances and making financial decisions gain insight into different types of income earned portfolio and passive and how they are taxed learn why passive income is important this book will

help you get started with these topics and more to help you best manage your portfolio and overall Finances chapter 2 work on your investment attitude humans are not rational creatures our decisions are often driven by emotions and it takes effort to learn how to make good decisions this chapter discusses ways to invest more rationally and improve your investment attitude Chapter 2.1 control your money mindset the market serves it does not Instruct Warren Buffett why invest there are four key reasons to begin investing first market growth is steady over time this may seem counterintuitive given that

almost everyone alive today has seen at least one maybe as many as three recessions and even a depression however in the long run increases in overall market value are as Dependable as taxation while the market May EB and flow over the course of years and more So over decades if you invest in intelligently you will see a return second throughout each year you give money away with a return you should be getting some back for yourself with every paycheck you hand a portion of your money away in taxes likely with a Grumble but nonetheless you

do it without a fight why not hand a portion of your money to your future self by investing in this way regularly putting money into Investments is a sort of Self- Taxation but if done correctly one in which you will see that money come back and then some third you work for your money and in return the owners or CEOs of that business profit in the process why not run your own investment business and return a profit for yourself investing is basically owning a business in which your Investments are your employees working by themselves with

your financial Foundation to produce profit for you get your money to Work for you instead of working for your money this is the wealth mentality fourth and finally you should invest because of the potential to earn significant profits from dividends although there are stocks that do not offer dividends most stocks return dividends on a quarterly basis every 3 months and some offer an annual or monthly dividend the only way to make your money work for you is to add massive value by supporting and owning a Piece of other businesses thus piggybacking on their gains and

cutting your losses while you make money increasing a variety of multiple dividend returns for the rest of your life 24 hours a day 365 days a year what are dividends Dividends are a distribution of a company's earnings to shareholders Dividends are measured in terms of their yield that is how much money you get they are typically distributed as a Small percentage of the overall stocks value typically about 2 to 3% but some dividend stocks can offer closer to a 6% yield once or several times a year essentially Dividends are icing on the cake extra free

money on top of your increase in a portfolio's worth when stock values eventually rise how should you invest mindset to quote Warren Buffett's statement that is as valuable as it is short think independently there is no one best way to invest Though don't confuse this with saying that there is no wrong because there are plenty however you have to focus on finding the best way to invest intelligently and relatively securely in a way that works for your income level goals principles and lifestyle that being said every investment strategy should be comprehensive regardless of what you

invest in and how much you invest you need to be in the mindset of carefully Watching where your money is going and what you are getting in return as the saying goes take care of the pennies and the dollars will take care of themselves to do this you must view your role as a part owner of what you invest in this includes the realization that you cannot control consumer Behavior the market while you can guarantee that over time the market will grow in value no one can predict what will happen with the market or when

at any particular point in time Any expert who claims to be able to predict exact Market Behavior at a specific time is either lying or delusional the only guarantee is that without investing you will not receive a return how should you invest money in order for your money to work as a profitable business you must set aside a portion of your income that is irm marked for investment and this purpose must be non-negotiable no matter what you must treat your investment funding With the same sense of necessity that you treat paying rent or taxes or

buying groceries this is the most important rule of building your money machine without putting your money into Investments you could never tap the power of compounding interest Returns what Albert Einstein has called The Eighth Wonder of the world as he says he who understands it earns it he who doesn't pays it becoming an expert in personal fin will not only give you the Power of knowledge but it will save you a significant amount of money money that you can turn into Investments thus redoubling the financial value of handling your own finances and Investments handling your

own finances and Investments not only renders you in complete control of your financial destiny but it will save you from the fees stated and hidden associated with paying a financial advisor an expense that can add up significantly over the Years how should you invest portfolio Sometimes the best way to explain something is through analogy your portfolio is like a litter of puppies stick with me here imagine you have a litter of puppies each puppy is different from the others some grow faster than others some require more food than others but they all grow further if

you play your cards right and make intelligent choices with your behavior You can raise them to Aid you however you need your stock portfolio is like this litter of puppies and that each instrument in your portfolio is unique requiring different amounts of sustenance funding and growing at different rates however as you keep feeding these instruments with your funding as time passes your investments will naturally grow bigger and stronger these investments will come to Serve and Protect you your home and your legacy From home arm like a pack of guard dogs I work to learn how

to make money with money I don't work for money money works for me Robert kayaki chapter 2.2 understand and control your Equity emotions almost everyone learns to feel an emotional attachment to their money this makes perfect sense money is after all a representation of value for the worker they in come is the representation of the arduous work that They put in to earn that money in an immediate sense money represents hours of Labor and stress however this is only the sole representation of money for those who don't understand the power of investing for those who

do money also represents the potential for exponentiated wealth part of the emotional fear of parting with money for investment comes from misinformation or misunderstanding or doubt downright lack of information from school families Friends many if not most people do not have a proper financial education your avoidance of investing your money needs to stop here you need to let go of the emotional attachment and act logically and intelligently to use the market which means using some of your income in the market to make your money make money the key to overcoming this fear and the key

to significant financial growth in the market is to remember that you are playing the long waiting game building Your financial wealth will not happen overnight in the sense that you will likely not wake up tomorrow and be a millionaire unless you get a sizable inheritance however it can happen while you sleep if you invest intelligently and automate your Investments the most important thing to remember is to be patient and know that while short-term downfalls crashes may occur overall the market is stable and day to-day or month to month profit and loss do not Determine income

in the long run this is not to say that you will not see growth in the short term but it is to say that you need to be ready to persist despite what seems like immediate setbacks or stagnations the goal is to focus on building a money machine that will make you money while you sleep automatically and that will return significant long-term income not cash in your pocket right away reassure yourself you are taking control and leveraging your money While you sleep approximately 30% of your life is spent sleeping so if you lived to be

90 and never invested you would have wasted 30 years of time you could have been making returns keep telling yourself this is a slow process especially at first and that's okay chapter 2.3 adopt and maintain a relaxed and long-term discipline go Ultra long the key to investing is to be in it for the long haul one thing that can help you With your mindset is understanding compounding for both fees and dividend yield returns it can be useful to automate your contributions any way you can to set it and forget it to help keep your mind

off the ups and downs of the market most Financial websites allow you to make recurring contributions on a weekly monthly or even annual basis you will need to connect your financial brokerage account with your bank account to be able to do this so make sure you Have enough money each time the automatic contribution is taken out understand compound interest and the effects of time un investing in general you may want to assess your contributions in terms of your age young people in their 20s and 30s often are working entry-level jobs and can afford to make

a lot of contributions but because of compound any amount you invest could be greatly magnified as it will be acre interest over a longer Period people in their 40s and above may have more money due to their longer time in the job market and more experienced higher paying jobs but will have less time for the interest to acre so it may be possible to contribute more so you will want to take agid into account in coming up with an investment strategy understand compounding for both fees and dividend yield return when it comes to fees they

add up over the years and can impede on the growth Of your money machine the below graph is an illustrative example depicting the loss and return that can occur with a compounding fee rate of just 2% on the other hand compounding is your friend when it comes to Dividend investing take the following example assume for a given period of time that the stock price remains relatively stable you buy the stock knowing that it has a relatively stable price and gives a good dividend tip utility stocks can be great for this Then you receive a dividend

the value of your investment is now 103% of its initial value when another dividend rolls around you get another 3% of your 103% back which is an additional 3.09% so after two rounds of a 3% dividend your investment is now 106.9% of its original Val value higher dividend rates produce exponentially higher growth in returns if your dividend yield is 5% then the first dividend increases that to 105% with the second 5% dividend increasing your investment value to eventually collects enough snow to become a larger snowball compound interest applied to long-term investing builds momentum for your

portfolio and helps ensure excellent returns time is your friend in the compound investing game with this type of investing you can invest and continuously learn and optimize a few years later you'll find that your money machine has improved Mainly by itself making investing a required expense as disced just above you have to pay taxes every year so why not pay yourself and make it a non-negotiable aspect of your finances the advantage is that unlike taxes in investing you get to keep the money for yourself the challenge here is to figure out a system that works

for you the 503020 rule can be helpful here use 50% of your after tax pay on things you need 30% on things you want and 20% on Savings chapter 2.4 risks to avoid don't act on your instincts don't give up sell or buy without thinking ahead this is also known as consequential thinking what would be the benefit of your desired actions what would be the disadvantages think it through before you make a decision figure out how much you'll make when you sell make sure to take into account any taxes or fees including long-term scenarios in

which you could Make more by staying in the market work out these scenarios in your head before you buy sell or give up it's important to remember that sometimes the market reacts to Hype or the latest news these downturns are typically temporary and driven by emotional thinking which leads to sell-offs in the long term the market recovers from such minute Corrections learn to take measured strategic action rather than emotional drastic actions in the investment world Don't ignore hidden fees ask questions don't pay more than you need to fees slowly comp pound and slow the growth

of your wealth here are a few examples a 1% fee over one year leaves you with 99% over 10 years you will be left with just over 90% of your original investment 1% fees over 10 years equal over 10% in loss growth 2% fees over 10 years equal over 18% in Lost growth 3% fees over 10 years equal over 26% in Lost growth here I'm just walking you Through the math in a hypothetical scenario here's a more concrete real world example using the SEC graph below we can see how seemingly minor increases in fee rates

can drastically erode your take-home from Investments over time with an initial investment of $100,000 and a 5% annual fee you will see $10,000 less in return over 20 years compared to a .25% annual fee when the fee doubles to 1% this loss triples to $30,000 after 20 years don't ignore tax rules educate Yourself regarding your government's tax laws and how they pertain to affecting your Investments when you withdraw funds when you leave funds and when you reinvest write down your question question and call your Revenue Agency and speak to an expert write down their answers

invest in yourself maximize your investment in yourself by minimizing your losses to fees this is the key to lowering and eliminating fees mutual funds can bring good returns but have High fees on the other hand cash accounts Like A Bank savings account can underperform over time compared to stocks fees make a difference as a kid in the 1980s in Canada I remember that some people would rent a stationary phone for a low monthly fee and some people would buy a stationary phone for a noticeable but outrageously High onetime fee the people who bought the phone

made an investment and didn't continue to pay for it but the people Who rented the phone were paying a pernicious fee for years never noticing the hundreds and thousands of dollars given away over many years dollars that could have been slowly compounded to help instead of unknowingly eating away at their savings over the years invest in yourself and you'll see the metaphorical and literal dividends materialize understand the nature of the stock market the stock market can be viewed as analogous to the weather and Seasons weather is shortterm and unpredictable while seasons are longer term and

approximately predictable the same goes for the stock market change happen due to news and hype which are in the short term the longer term Trends are more predictable and operate in an approximate 10year cycle a bull market is a market that is expected to rise increasing the value of Investments on the other hand a bare Market is a market that decreases a value of Investments 20% or more from recent highs causing pessimism for others about the future historically there's roughly an approximate 10 year cycle of a bull market followed by an approximate 2 years of

a bare Market in a bare market stocks are down and dividend yields increase which pay you more money bare markets are actually a great time to buy because most or all the positions stocks go on sale and a lucky time to get started in investing however time in the Market beats timing the market ultimately meaning that any time is a great time to start investing in a bull market when stocks show a pattern of improvement dividend yields decrease which pay you less money bare markets are a great time for investors assuming the Investments are reliable

Blue Chip stocks that show many years of never having missed a dividend distribution or payout this could be easily checked online nowadays basis points are a Common measurement unit for interest rates one basis point is the equivalent of 1/ 100th of 1% % as Investopedia defines it a 1% change therefore is 100 basis points chapter 2.5 positions to invest in and their nature when you buy an investment you can say you have taken a position in it whether it is a company property fund or another type of investment when considering positions to invest in you

should consider all the different Possibilities for the best outcomes here are a few different positions Vanguard index funds were founded by Finance Gau Jack Bogle in the 1970s they are more expensive and do not pay out as much but tend to be more reliable index funds are designed to mirror a market index so you end up becoming an owner in the market real estate investment trusts or REITs include property or mortgage this can include Apartments office buildings And Retail spaces EX strange traded funds or ETFs or prepi baskets of funds but they won't make you

rich individual stocks may make you more money but they may or may not survive a bare market so you need to do your research chapter 3 tools and resources a successful man is one who can lay a firm foundation with the bricks others have thrown at him David Brinkley chapter 3.1 websites to help you get started Investing many large banks allow you to open investment brokerage accounts and offer to buy and to sell with little to no commissions or fees however there are also smaller independent self-served Brokers that are alternatives to those offered by large

Banks I prefer these smaller Brokers because they are among the most userfriendly investment apps both in terms of their interface and customer support they are also more effective and efficient than many other Investment tools including traditional Banks the interface for these websites also appears more simple and the customer support element is faster and more effective to My Mind Quest trade wealth simple Robin Hood you must do your own comparative research and make your own decision about which broker to use and stick to that decision however I will offer a brief overview of each of these

platforms to help you get started in your comparison Quest trade what is Quest trade Quest trade is a mobile and desktop investment and trading platform for Canadian residents offering access to various investment products and portfolio management options at low fees what can you do on Quest trade Quest trade offers a platform for savings investment and trading in an array of products and Market so that you can broaden your portfolio and leverage your Investments the quest trade platform offers you the ability to Invest in stocks long and short options simple and multi-leg bonds through a live

broker exchange traded funds efts mutual funds contracts for difference cfds requires additional platform IQ Edge Forex requires additional platform IQ Edge Quest trade also offers savings and investment options tax-free savings accounts tfsas registered retirement savings plans rrsps margin accounts for us ncdn Positions guaranteed investment certificates gic's International equities initial public offerings IPOs precious metal purchases Quest trade offers free snapshots of basic Market information or for an additional fee live streamed Market updates from Top Market sources such as the New York Stock Exchange and NASDAQ this simplified information snapshot shows your balances buying power positions margin

balances and Profit and loss you can customize which information you're shown to make your trading decision more efficient how easy is Quest trade to use Quest trade is designed to facilitate the investment process offering an intuitive and simplified platform that functions the same whether you are using it on your computer or a smart device wealth simple what is wealth simple wealth simple is a desktop and mobile investment and saving platform for Canadian US and UK Residents providing algorithm-based automated portfolio management and saving services at low fees with a $ Z minimum opening balance what can

you do with wealth simple the wealth simple platform facilitates Financial goal achievement by employing an algorithm based on Modern portfolio Theory calculated using your responses to a questionnaire concerning financial goals time frame risk tolerance investment experience level of investment knowledge The wealth simple portfolio building and management algorithm uses generic Buy and Hold strategies is popular ated by 8 to 10 well-founded investment instruments and employees tried and true market strategies including diversification of asset classes passive Buy and Hold investing dividend reinvestment risk scoring your feedback however you do have some basic control over your portfolio construction

you can choose from socially conscious EG Eco-friendly portfolios and Halal accounts you can also change the proportion of your funding devoted to each instrument the wealth simple website shows your key account features and allows you to review your transactions and investment performance statistics based upon movement toward each of your financial goals further wealth simple live Representatives can be reached by phone or email though no live chat you can speak with a live Financial advisor upon request then you can hold unlimited financial planning sessions as a member you are allowed one session as a non-member finally

wealth simple also provides numerous easyto use financial and investment education tools including a thorough investing 101 glossery a comprehensive investment FAQ page covering common questions and concerns and monthly blogs and magazine issues which include numerous financial and investing howto Discussions how easy is wealth simple to use wealth simple makes more investing in Saving a no-brainer using an algorithm that populates your portfolio with ETFs mutual funds or a combination depending upon which region you live in and determines the proportion of funds towards each to maximize your potential to reach your financial goals while minimizing your risk

of loss the portfolio is automatically compiled by wealth simple based upon your answers to Their profile building questionnaire and your selections in the pool of potential financial goals the wealth simple algorithm takes the guesswork out of investing by automatically rebalancing your portfolio based upon your progress toward your goals and following deposits withdrawals and changes in asset values or risk score wealth simple also automatically determines the nature of your portfolio as conservative balances or growth focused based upon your Profile and calls transfers are easy easy as a few clicks of your mouse you can transfer taxable

or retirement accounts to start your wealth simple account or you can deposit new funds the website is mobile ready and easy to read and navigate Robin Hood what is Robin Hood Robin Hood is a simple investment and trading platform available as a mobile device application or traditional website it is designed for the most novice of investors Robin Hood is noted For itself Simplicity low deposit requirements no minimum and low stock purchase requirements you can purchase partial shares what can you do with Robin Hood Robin Hood's key selling points are that it allows you to invest

in stocks including partial stocks and trade in cryptocurrency with no minimum investment requirements and no trading cost the key to the Robin Hood app is its Simplicity and lack of minimum funding requirements I.E no minimum Deposit it however because the focus of Robin Hood is on Simplicity there are few of any ways to customize your profile how easy is Robin Hood to use Robin Hood is noted as one of the most userfriendly and therefore simple investment applications to use it should be noted that some of this hypers Simplicity means that this tool does not provide

the same depth of information or customization that other investment apps or websites offer however for the novice Investor especially the novice investor who is seeking to start small I.E purchasing partial shares the Robin Hood app and website is one of the simplest ways to get your feet wet in investing advantages and disadvantages of online brokerage firms in Canada we have wealth simple in questrade wealth simple is highly automated but there's less opportunity for learning because of the automation Quest trade is more manual and has great customer service For learning as you go understanding taxes fees

products and accounts in the United States apps like Robin Hood are also available these apps make it easy to invest from the convenience of your smartphone I prefer a manual self-learning approach and I use Quest trade for that reason chapter 3.2 Common Sense advice for picking positions picking positions take some effort at thought it's a good idea to create a requirements checklist For identifying positions that meet your standards here are some tips for creating a checklist think longterm ask yourself what will help take care of me when I'm too old work do your research Google

what the company or fund does its Holdings and its history both in terms of performance and in terms of Ventures check out the dividend payout examine dividend yield and payout history remember other indicators of success such as market cap and price both over The last year and throughout a company's lifetime once you figured out your positions over the span of a few days execute your trades time is of the essence in investing chapter 3.3 practical tips for getting started here's some of my advice as a lifelong student investor I leave time in the market beats

timing the market don't try to time the market just get started the best way you can with what you can Afford at first expect fluctuations in unrealized value in the total value of your portfolio this is normal hold on to what you have and build upon it by regularly contributing to your portfolio and making consist Investments make sure to reinvest dividends right away many Brokers have the op to automatically reinvest dividends for you in what is called a drip dividend reinvestment program I prefer not to use a drip but to automatically allocate my funds based

On stock price and yield weekly chapter 4 basic strategies it takes as much energy to wish as it does to plan Eleanor Roosevelt chapter 4.1 diversify your Investments diversifying your Investments means not putting all your eggs in one basket when you invest in a variety of different positions you can decrease Risk by having a bunch of different baskets so to speak mitigate Risk by investing in a variety of Different stocks for example you may opt for a value investment approach with a few well researched investments in riskier positions consider for example investing in both NYS

New York Stock Exchange and NASDAQ stocks so that if the NASDAQ hits a low you still have some liquidity in the markets due to your other Investments diversification of Investments is the best way to reduce risk and maximize gains keeping your money spread across many stocks and Industries is the only reliable insurance against the risk of being wrong but diversification doesn't just minimize your odds of being wrong it also maximizes your chance of being right Ben Graham the intelligent investor chapter 4.2 don't spend more than you earn analyze your monthly expenditures when you're working on

managing your finances the most important part is to take stock of your monthly expenditures and make sure that You have the money for them if you find yourself unable to pay the bills each month and seem to be escalating toward debt check in with your finances make a budget and see whether you could stick to it if you cannot live within your means you will need to cut things out of your budget or see if you can get a job that enables you to make ends meet making a budget and comparing it to your typical

spending is a great way to stay accountable for your Finances often times you will notice that you can cut back in some places to save money perhaps your shopping habit is out of control and you are holding on to Goods you can either sell or return to the store or you just need to cut back maybe you've been eating too much takeout and delivery from local restaurants when you could just cook at home whatever your spending patterns are figure them out and learn from them to come up with a budget that works for you Chapter

4.3 devote a certain amount of money per month to building your money machine once you check in with your finances as discussed in chapter 3.1 you can start building your money machine by money machine I mean the Investment Portfolio that earns you passive dividend income which you can reinvest to make your money machine grow faster to do this dedicate a certain amount of money per month that you never touch to building Your money machine learning the keys to financial success means learning from the wisdom of those who have managed financial success according to the automatic

millionaire by David Bach those who want to be super rich super fast should pay themselves first by setting aside at least 20% of their gross income not setting aside anything or setting aside anything less than 5% can set one up for being poor or even dead broke in your journey to learn the Keys to financial success it is vital to be familiar with the greats in financial success to stand on the shoulders of giants you must first know who the Giants are Jim ran is one of the most well-known and well respected of these greats

he was a trailblazing self-starter investment and business Guru and financial Mentor from humble beginnings as the child of Idaho farmers in the mid 20th century ran made a rapid rise to financial success and Fame by His early 30s following the advice of his mentor Earl scha he has been invited to speak to audiences from high school students to Rotary clubs quickly expanding to paid seminars to packed audiences Jim ran has also published numerous popular books and won numerous industry Awards inspiring Millions with his approachable and grounded attitude to personal finance building from an insightful human

behavior-based philosophy and the mentor of World-renowned life coach Tony Robbins Jim ran suggests a fairly simple breakdown of proportions of expenditures to build a portfolio that will set you up for financial greatness which will allow you a comfortable living and still leave room for spreading the wealth so that you can build your karma while you build your wealth He suggests devoting 70% of your income to your living expenses bills groceries gas Etc 10% to charity 10% to lower risk investing and The last 10% to higher risk investing this breakdown will allow you to take the

necessary leaps to make meaningful gains while maintaining Financial Security however if you can afford to devote more than 20% of your in come to investing that is if you can live off of less than 70% of your income and invest the rest ran strongly suggest that you do so essentially you want to devote as much of your income to investing as you reasonably can without depriving Yourself of necessities and a safety net especially for those who are starting out in their middle age you will need to find ways to compound your wealth more quickly in

order to see your financial growth pay off before retirement you will likely need to devote more than 20% of your income to invest the more you invest the greater your return the more you pay into your money machine the more you will be able to invest the more you invest the more your money will compound Meaning increased Investments are met with exponential income growth chapter 4.4 think about asset allocation Dividends are usually paid out as cash payments this means that you are free to do whatever you you want with your dividend payments without having to

sell your stock of course you can reinvest your dividends to buy more stocks of the paying company and this may be a wise choice if the stock is doing particularly well more stock means More cash from dividends however it may be wiser yet to hold on to your dividend cash payments and use them to broaden your portfolio by buying a different stock or investment instrument putting your dividend cash payments in the bank to build up until the next bare Market will mean that you have that much more investment power when stock prices drop the ideal

time to invest chapter 4.5 build up your emergency savings the gold standard for savings seems to be to Hold enough savings to cover six months of bills and living expenses EG groceries gas having this kind of savings essentially buys you 6 months for the economy the market or your current situation to stabilize though hopefully you would never have to use up your entire savings further having sizable savings also protects you against emergencies such as home or car repairs medical costs or any other kind of unforeseen major expense finally Having significant savings also protects you against

the effects of downturns in the market especially the shift to a bare Market as the saying goes time in the market beats timing the market the market will always shift over time between a bare market and a bull market but having savings built up means that you will be able to ride through the downturns or life disasters or major expenses without having to pull out of the market if you can preserve through The bare Market you will see the reward for your perseverance when the market has an upturn and stabilizes again chapter 4.6 Debt Pay

your debts and pay them on time but don't overpay them meaning after paying your monthly dues for debts pay yourself before applying any extra income toward paying off debt this may sound counterintuitive you may be thinking won't I lose money on interest if I take longer to pay my debts while this may be true one of the Common pieces of advice from successful and prominent Financial experts is to pay yourself first so you can focus that money on investing money paid toward debt is money that you are not putting into the market many Financial experts

even say that you should pay yourself before paying anything else if you want to make your money work for you you have to make paying yourself and investing those self- payments a non-negotiable process Don't Think Twice don't skip any Self-payment this is the only way to see your money grow chapter 5 voices of wisdom before before you speak listen before you write think before you spend earn before you invest investigate before you criticize wait before you pray forgive before you quit try before you retire save before you die give William a ward the best way

to learn Sage investment advice is to read the work of The experts Ray Dalia I learned that if you work hard and creatively you can have just about anything you want but not everything you want maturity is the ability to reject good Alternatives in order to pursue even better ones listening to uninformed people is worse than having no answers at all in trading you have to be defensive and aggressive at the same time don't put the expedient ahead of the Strategic almost nothing can stop You from succeeding if you have a flexibility and B self-accountability

Paul tutor Jones I believe the very best money is made at the market turns everyone says you get killed trying to pick tops and bottoms and you make all your money by playing the trend in the middle well for 12 years I have been missing the meat in the middle but I have made a lot of money at tops and bottoms if I have positions going against me I get right out if they are Going for me I keep them risk control is the most important thing in trading if you have a losing position that

is making you uncomfortable the solution is very simple get out because you can always get back in the secret to being successful from a trading perspective is to have an indefatigable and an undying and unquenchable thirst for information and knowledge don't ever average losers decrease inre your trading volume when you are trading poorly increase your Volume when you are trading well never trade in situations where you don't have control for example I don't risk significant amounts of money in front of key reports since that is gambling not trading intellectual Capital will always Trump Financial Capital

Peter Lynch if you're prepared to invest in a company then you ought to be able to explain why in simple language that a fifth grader could understand and quickly enough so the fifth grader won't get bored there's No shame in losing money on a stock everybody does it what is shameful is to hold on to a stock or Worse to buy more of it when the fundamentals are deteriorating if you can't find any companies that you think are attractive put your money in the bank until you discover some if you don't study any companies you

have the same success buying stocks as you do in a poker game if you bet without looking at your cards in the long run a portfolio of Well-chosen stocks and or Equity mutual funds will always outperform a portfolio of bonds or a money market account in the long run a portfolio of poorly chosen stocks won't outperform the money left under the mattress Robert kosaki the fear of being different prevents most people from seeking new ways to solve their problems if you want to be rich you need to develop your vision you must be standing on

the Edge of Time gazing into the Future often the more money you make the more money you spend that's why more money doesn't make you rich assets make you rich the moment you make passive income and portfolio income a part of your life your life will change those words will become flesh find the game where you can win and then commit your life to playing it and play to win Sir John Templeton bull markets are born on pessimism grown on skepticism mature on optimism and die on Euphoria the time of Maximum pessimism is the best

time to buy and the time of Maximum optimism is the best time to sell the only reason to sell them a stock now is to buy other more attractive stocks if you can't find more attractive stocks hold on to what you have the the only way to avoid mistakes is not to invest which is the biggest mistake of all forgive yourself for your errors don't become discouraged and certainly don't try to recoup your losses by taking bigger risks instead Turn each mistake into a learning experience determine exactly what went wrong and how you can avoid

the same mistake in the future war and Buffett it's far better to buy a wonderful company at a fair price than a fair company at a wonderful price only buy something that you'd be perfectly happy to hold if the market shut down for 10 years whyde diversification is only required when investors do not understand what they are doing look at Market fluctuations as your friend rather than your enemy profit from Folly rather than participate in it we've used derivatives for many many years I don't think derivatives are evil per se I think they are dangerous

so we use lots of things daily that are dangerous but we generally pay some attention to how they're used we tell the cars how fast they can go Mark Cuban one thing we can all control is effort put in the time to become an expert in Whatever you're doing it will give you an advantage because most people don't do this it's not in the dreaming it's in the doing creating opportunities means looking at where others are not not perfectionism is the enemy of profitability Jack Bogle in recent years annual trading in stocks necessarily creating by

reason of the transaction costs involved a negative value for Traders average some $33 trillion but Capital formation that is Directing fresh investment Capital to its highest and best uses such as new businesses new technology medical breakthroughs and modern plant and equipment for existing businesses average some $250 billion put another way speculation represented about 99.2% of the activities of our Equity market system with capital formation accounting for 8% investing is not nearly as difficult as it looks successful investing Involves doing a few things right and avoiding serious mistakes time is your friend impulse is your enemy

the index fund is a sensible serviceable method for obtaining the Market's rate of return with absolutely no effort and minimal expense index funds eliminate the risks of individual stocks Market sectors and manager selection leaving only stock market risk Benjamin Graham an investment operation is one which upon through analysis promises safety of Principle and an adequate return turn operations not meeting these requirements are speculative but investing isn't about beating others at their game it's about controlling yourself at your own game people who invest make money for themselves people who speculate make money for their Brokers you

must thoroughly analyze a company and the soundness of its underlying businesses before you buy its stock you must deliberately protect Yourself against serious losses you must aspire to adequate not extraordinary performance you will be much more in control if you realize how much you are not in control obvious prospects for physical growth in a business do not translate into obvious profits for investors Albert Einstein is reputed to have said compound interest is the eighth wonder of the world he who understands it earns it he who doesn't pays it Chapter six stand on the shoulders of

giants risk comes from not knowing what you're doing Warren Buffett money mindset books out there offer powerful advice for investors from the experts here are a few summaries of the best money mindset books out there you can find these and other books on my website I update this page every so often with links to my favorite books Rich Dad Poor Dad by Robert kosaki in Rich Dad Poor Dad Robert Kayaki discusses the difference in financial literacy and mentality between the rich and the poor and middle classes essentially kosaki holds that it is a lack of

financial literacy and a mentality focused on making more money and securing that money that traps poor in middle class individuals in the rat race and the cycle of debt the poor and middle class focus on making and keeping money through work and securing your job as a means to this leads them to ignore Opportunities for income and financial asset growth because they are too focused on paying expenses the mentality of I can't afford it shuts off creativity the mentality of how can I afford it pushes you toward action the rich focus on learning new skills

and keeping their eyes and Minds open to new Financial opportunities poor and middleclass people confuse liabilities with assets this ends up increasing their debt assets make you money Liabilities cost you money for example it is thought among the poor and middle classes to be an asset because of its value but because of derivatives taxes upkeep and loss in return upon Selling Houses often actually lead to more debt rental property on the other hand is an asset it makes you money via rent payment payments gaining financial literacy specifically accounting investing and tax law are the keys

to financial success don't work for money Make money work for you rich dad's cash flow quadrant by Robert kosaki following from the discussion of the rich versus the poor financial work mentality discussed in Rich Dad Poor Dad in cash flow quadrant kosaki discusses the four positions in what he calls the cash flow quadrant or the four means of income one employee two self-employed three business owner and four investor it is possible to belong to more than one quadrant in fact this is preferred However each quadrant requires particular skills so if you're going to switch quadrants

or keep one foot in multiple quadrants you will need to possess the knowledge and skills needed for each of those quadrants those in the first two quadrants have the most difficulty getting rich those in the last two quadrants have the easiest time these quadrants are defined by four factors one focus on job income security two focus on the job Financial Freedom Three amount of personal time required for income working hours and four amount of money garnered the employee and self-employed both place the highest value Val on job security trading their time for money they work

for their money the latter experiencing less security than the former who is shielded from disasters such as major medical issues by employee benefits however neither the employee nor the self-employed experiences job or income freedom and Neither is likely to make one rich the business owner and the investor focus on job and Financial Freedom garnering lots of money without having to devote considerable time to their work their money works for them secrets of the millionaire mindset by T Harve eer T Harve eer secrets of the millionaire mindset like the other books discussed and as the title

suggests is a how-to guide for shifting your mindset to break old habits that keep you poor and make New ones that will help make you rich behavior is learned particularly learned from our parents most people people learn how to get a job what job to get how to perceive work in holding a job and how to save or spend our earnings from our parents and most people unconsciously replicate this learned behavior when they are adults the key trick to taking on the mind of the millionaire then is to recognize that you are in charge of

how you make and Spend money and to take the reign in reimagining and manifesting the mindset of the rich in order to manifest the mindset of of the rich which allows them to make and hold on to their money you must first learn to appreciate this mindset in brief you cannot despise a millionaire at the same time that you seek to become one this negative mindset toward the rich will create a mental block and keep you from engaging with and learning from the rich the key to Gaining The Millionaire Mind is thus realizing that you

are in control taking conscious and thoughtful steps to direct earning and spending to make more money and waste less money and to learn to appreciate the financial wisdom that the wealthy can offer Think and Grow Rich by Napoleon Hill in Think and Grow Rich Napoleon Hill puts forward the simple argument that the attainment of riches derives from a single-minded and unrelenting determination to become rich Success and failure are both end results of and driven by mindsets of success or failure ultimately the attainment of wealth getting rich is achievable if you are able to control your

own mind the best way to achieve this control over your mind is to maintain singleness of purpose and strength of Desire Hill lays out the means of achieving and maintaining that mindset throughout this book there are four key aspects of your goal that are necessary for its Achievement First it must be a singular goal second your goal must be definite you must know exactly what you want to achieve exactly how much money you want to have and exactly how you are going to achieve that what are you going to do to get that money third

you must have a burning all consuming desire to achieve this goal this desire must predominate your thoughts and energies fourth you must believe that your goal will be achieved you must visualize its Achievement and build and maintain faith that it will happen in Additionally you must be flexible if you're not achieving your goal through the means you have developed make a different plan don't give up persistence driven by a Perpetual burning desire to achieve your goal must be maintained start today even if you don't have a plan Begin by visualizing your goal you are a

badass at making money by Jen sincero and you are a badass at making money Jen sincero Takes an arguably unconventional approach to what it means and what it takes to become rich sincero like Napoleon Hill discusses quite often the importance of putting your desire into the universe however what this ultimately means is that you have to give your mentality and energy toward achieving your financial goal and you have to visualize its manifestation and believe that it will happen unlike many other mainstream books about making Money that Focus specifically on becoming a millionaire and working the

market or your career path to make this happen sincero offers a different definition to be rich is to have enough money that you can live your best and most authentic life whatever that means to you to achieve riches you must thus take on a mindset focused upon this goal in order to achieve this mindset you must first understand why you want to get rich what you would spend that money On how you will make that money and when you will achieve this goal your answers to the first two questions need to be more meaningful than

the desire to swim in a pool of cash and buy a Lamborghini you must then be willing to take a hard look at the habits you have that lead you to waste money and time that you could use to make money you must be willing to dive head first toward your goal the millionaire fast lane by MJ DeMarco MJ Marco in the millionaire fast lanane argues that the only Dependable way to get rich is by owning your own business specifically a business that offers a unique valuable and marketable product either a commodity for example an

appliance or a service such as programming DeMarco argues that stocks are not Dependable because of the threat of Market crashes or the more mundane threat of a drop in stock values even retirement or other interest bearing Accounts are not Dependable again because of the threat of a market crash and because of inflation which amounts to a loss of real worth $3 million today may only be worth $1 million in real value by the time you retire further investing in a timec consuming and costly college degree will not only drain your financial resources but will give

you a late start and will not give you the skills you need to be an Adept business owner the skills of creativity Dve in financial and consumer Market sense all of which you can learn on your own in order to create a business that thrives without a focus on the tried and true those markets are already cornered and swamped with the competition instead be inventive focus on creating something new that will be in demand and meet customer needs finally switch from a consumer to a business owner mindset examine products advertisements and business is through a

Behindthescenes lens investigating their business and advertising model and the value and Ingenuity of their product the automatic millionaire by David Bach in his book The automatic millionaire David Bach explains how shifting to automatic savings Investments and bill payments as well as cutting down on small unnecessary expenses can make you a millionaire by the time you retire one key Point made by this book a the theme shared with kosaki is the value of Paying yourself first most people pay their bills taxes and other expenses first and then hopefully save or better invest what is left over

however this is backward you should put money into your retirement fund rainy day fund savings and Investments first and then deal with your bills and expenses with the remainder automating these savings and investments will allow this process to become second nature and change this use of money from Optional to non-negotiable putting a percentage of your income in your savings or retirement fund before your check is cut is also a great way to save money and reduce loss of income from taxes equally important of paying yourself first and automating savings and Investments is cutting down or

eliminating unnecessary small costs such as coffee or food out or other impulse buys can increase your Expendable income and therefore your Savings and Investments drastically over the course of your working Life The Wealthy Barber by David Chilton David Chilton The Wealthy Barber is a financial guide told through a narrative lens the story follows the main characters as they seek out and learn the wisdom of a barber who has become wealthy through financial conservation and literacy a recurrent theme in the financial guides discussed in this chapter The barber advises first and most importantly to pay yourself

first deciding upon a meaningful but manageable amount of your income to set aside from each paycheck is the first step to making your money work for you in the words of kosaki the barber suggests setting aside 10% this amount is enough to build up and do something worthwhile with but not so much that it will drastically change your lifestyle however building up exra cash alone will Not make you a millionaire to accomplish this goal you have to make your money make you money that is you need to invest The Wealthy Barber suggests putting your money

into Investments like mutual funds which while they have a lower overall rate of return are far more secure The Wealthy Barber holds that pouring your money into stocks is essentially gambling The Wealthy Barber also warns against putting your money into property or other assets sets that May take away from the money you are able to invest buying a home can provide a return if you play your cards right but if paying your mortgage takes money out of your savings it's a loss the richest man in Babylon by George Classen in the richest man in Babylon

George Classen explains that the keys to accumulating wealth lie in a mindset focused on earning saving learning and Prudence class in uses of wisdom from throughout history and the analogy of Babylon one of the richest civilizations to exemplify his points unlike many other books on cultivating a wealth focused or Rich mindset Classen focuses not on the investment side but rather on the earning side the key to accumulating wealth is in earning the more you earn the more you can save mastering your trade and better learning new trades will expand your Capac capacity to earn you

should also seek out advice but make sure you are seeking out advice only From those who are financially knowledgeable and responsible because as earning grows often so does the cost of one's lifestyle you need to maintain a simple lifestyle and save at least 10% of your earnings and use the rest for your expenses debt should be paid off as soon as reasonably possible if you are in debt 20% of your income should go to paying it off however while saving 10% and paying off debts you should also not put so much money away or into

debt that You deprive yourself adopt a Frugal but reasonably comfortable lifestyle investing is wise if you are careful do not invest in Ventures that do not offer a meaningful return or those that seem too good to be true chapter 7 invest like the pros you can follow the lead of investment professionals like Warren Buffett and Ray Dalo to succeed in the investing game and maximize your money machine in this chapter we offer Insights on how to invest like these two giants of investment and finance using public investment information from their companies 7.1 Warren Buffett Burkshire

Hathaway despite being a billionaire and one of the richest people in World Buffett also known as the Oracle of Omaha is known for living in his modest Nebraska home and avoiding spending on luxury items opting instead for a burger and Cherry Coke As a treat famous as an Ultra long value investor Buffett es skues the new in favor of time tested Classics such as Coca-Cola BNSF Geico and seiz candies one exception to this rule is Buffett's investment in Tech Giant Apple maker of the popular iPhone as well as e-commerce retailer Amazon Berkshire haway buffets company

holds a number of popular value investments in their portfolio besides the above mentioned companies including American Express Bank of America Corporation Biogen Costco dvita dialysis General Motors Company Johnson and Johnson Proctor and Gamble ups and many other well-known High perform forming and high reputation companies 7.2 Ray Doo Bridgewater Buffett spendthrift nature sets him apart from other investors like Ray Delio who owns Bridgewater Associates an asset management firm and the world's largest hedge fund Dalo a Graduate of Harvard Business School wrote a 132 page volume on what helped him succeed in investing among these is the

ability to accept and deal with the issues that one faces in life another is listening to others and maintaining good relationships with family and friends while money can be fleeting relationships can be more long lasting using reality as a compass doio believes can help one succeed in the investment World risk management is also a very Large part of this strategy Dio's Bridgewater invests in Biogen like birkshire Hathaway as as well as pharmaceutical company Bristol Meyers squib company United Rentals Macy's steel producer new cor Corporation Royal Bank of Canada Eastman Chemical Company and Alliance Data Systems

chapter eight conclusions if you don't find a way to make money while you sleep you will work until you die Warren Buffett Investing can be overwhelming it can feel like there's a lot of information to learn a lot of math then you may be intimidated by the typical image of the investor that you see a professional working on the Wall Street floor the truth is that anyone can get started in investing by using the right strategies and doing your research you can make sure that you make the most of your money machine investing doesn't have

to be difficult approaching investing with A curious mind remain eager to learn after following the markets for a while making various mistakes and successes following the news Etc you will get a feel for how it all works there is nothing that can substitute this type of experience so be prepared for that and have a growth and learning mindset once again congratulations on considering or deciding to pursue a dream that few people will experience firsthand stay Excited curious and meticulous in learning all you can once you take action daily for 6 months it may change how

you define yourself