so over the past 10 actually 15 years I have more than doubled my money in the stock market just by doing the basic thing when I talk to people who don't know anything about the stock market they seem afraid so I'm just I just want to explain it it's pretty simple quick disclaimer before you do anything you should know that I am not a financial expert I am actually an idiot also before you do any investing in the stock market make sure you have an emergency fund 3 to 6 months living expenses put away in
a nice safe savings account maybe even more than that okay now to reveal the not so surprising relatively safe way to invest in the stock market that I do index funds if you have an emergency fund and you can pay your bills and you have some savings you could put a good chunk of that in index funds and just let it sit write out the ups and downs and over time it will grow at a higher rate than pretty much anything else unless you're dealing with Bernie maid off but that probably won't end well well
it didn't you can't deal with him anymore but I highly recommend watching made off the monster of Wall Street if you really want to learn about the extent of all the things he did holy crap it's so good and terrible if someone's offering you 18% consistently forever but you can't know how they do it it's a Ponzi scheme don't do it but years ago in my early 30s I didn't know anything about stock I didn't know anything but investing I just thought of it as like I'm not some business guy I'm not someone who works
on the floor at the stock exchange like in the movie trading places I don't know what business is going to do well and then a company called ShareBuilder through my online bank gave me an offer to use their program to invest and they would give me $50 I'm like CH $50 goodink and so I dabbled I put a little bit of money in and I took a quiz that gives asks you for a risk assessment how old you are your income various basic things and it recommended some funds for me to invest in and I
did just a little bit and then I read more about it and I learned that the stock market since its Beginnings I really didn't know any of this since its Beginnings if you average the whole thing out has grown about 10% per year there have been some terrible times Great Depression the Great Recession the great succession I don't know and then I learned there are things called index funds which match various indexes indices indexes in the market what's an index the NASDAQ the Dow the S&P 500 those are ones we talk about a lot here
in the United States actually let's go back a little further what is the stock market the stock market is a business will make itself public and say hey give me money if you give me the money I will make profit with your money and then you can share in that profit you get a little tiny share a little tiny ownership of the business and on the stock market you can invest directly in businesses but you don't have to you can invest in an index what's an index an index like the Dow the NASDAQ the S&P
500 are pools of businesses they're not all the businesses but they're select bunch of businesses that are used to measure the stock market as a whole the S&P 500 is the top 500 companies in the United States and it pulls those together and those that tends to show show how the market overall is doing and since its Inception it has grown 10% per year which since like the 1950s again has had ups and downs has had Decades of very little or no growth or Dow growth degrowth but over the Long Haul 10% per year and
there are index funds funds that will group together a bunch of businesses to mimic the S&P 500 and you can invest in those index funds so if you put your money in an index fund that mimics the S&P 500 his has shown that it's going to grow uh 7 to 10% per year over the Long Haul if you're willing to wait through downtimes of course past performance is no guarantee of future performance but it looks pretty good and if at some point it turns and starts going down and it just goes all the way down
to zero society's going to have other problems and I I I don't even know if money is going to matter anymore so after learning all of this then I just put a huge chunk of my savings into the stock market into various index funds I didn't put it all into one using the recommendations from ShareBuilder which doesn't exist anymore well it does exist it's different now and I don't know I don't recommend it necessarily I don't know anything about it it might be good I don't know what it is but ER trade bought the US
version of ShareBuilder so now I use eade just by default on accident and it I like eade but I'm not recommending that either I don't there might be better ones I've only used share Builder and E trade but what I'm saying is I wish I would have known about index funds and how the stock market Works sooner and would have put money in earlier and it would have grown even more cuz over the past 10 to 15 years I have more than doubled my money that's sitting there it's hard to tell exactly because sometimes I
take money out I've taken money out for expenses for our house which home ownership not necessarily the best investment it can be I I've done a video about buying homes before maybe I should do another one I've put money in occasionally as well so I can't tell exactly how much but it's at least my money now there are fees attached to index funds and there are taxes so it's it's more complicated but in general it is the best investment I've ever made I mean aside from investing in myself my education learning how to do video
investing my time in making videos and learning more and investment in my band of almost 25 years driftless Pony Club the other band I'm currently in Violet Palm the podcast two guys talking about lettuce investment in my friend Jake's horror movie which has just gotten an article written up in in collider investments in my own health eating healthy exercise investment in growing a family the most important investment but as far as monetary investment making money work for you everything that all of the Articles said that it would do it did it worked I just think
it's a pretty solid investment don't put all your eggs in one basket don't change horses Midstream burd in a hand is worth two in a bush if you lie down with dogs you'll get up with fleas do not carry coals to Newcastle this Wikipedia list of Proverbs is very useful for this part of the video but I recommend finding some sort of online stock service taking their questionnaire and taking their recommendation and there are times you really have to stand firm because news about stocks going down are tend to be apocalyptic we're heading to another
depression World War III there have been times where I've been tempted to be like ooh maybe I should take all my money out and during the pandemic stocks went down pretty hard and I really did want to take it out but I I didn't and it it always recovers and goes back to where it was and continues on its upward trajectory it's less risky because it's lots and lots of businesses it's not just one as long as we continue wanting to progress as a society I think it's going to continue to go up so I'm
telling you this especially young people if you happen to have some savings that you can put away have an emergency fund first but if you have some savings it's a pretty darn good investment just index funds as you get closer to retirement they say you should reduce your risk maybe put it in more solid Investments that aren't going to go down for like a decade sometimes but so far from my experience it seems like it it just works take the advice invest in index funds if you have money to invest and maybe after some time
with some money in the stock market you can experiment with investing in other things I do invest in some companies directly and they have grown even more but that's riskier there's also day trading if you want to go that route which good luck to you history has shown that it's more likely you'll do better just letting your money sit in an index fund than day trading but you could get lucky and discover ever you have a gift I don't I'm not going to tell you what to do but seems unlikely and if you're having trouble
saving any money at all I didn't have any money saved at all through most of my 20s I did turn that around with help from the $20 rule which is a previous Money video that I made that you might want to check out and another good way to save is to make a budget and possibly to find out about Rogue subscriptions that you have and a company that can help you with that is rocket money thank you rocket money for sponsoring this video and for helping me and my wife budget we really use it and
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you know how much I hate negotiating well I'll tell you for a price you start the bidding wait I'm going to get Rocket money involved and we continue to use rocket money for budgeting it's the best budgeting app I've ever used we now have such a good handle on our spending and we can go really detailed to see what we're spending money on and what we shouldn't be spending money on because you can automatically monitor your spending by category and get notified when you hit your limits I love limits so much but only up to
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premium and you can unlock more locks with the right keys or combinations but that's unrelated that's rocket money.com Weezy waiter to get started for free okay thank you rocket money and thank you for watching I hope if you are thinking about investing I have helped you or maybe someday in the future when you invest you will be less afraid of the stock market if you already knew the stuff about the stock market I hope you felt good pointing at the screen and saying I already knew that to everyone else you were watching with they they
probably didn't enjoy that don't do that in the future I should make a video about how you shouldn't do that that is all in my previous video I tell you how to get out of a rut you can support me on patreon and um remember to diversify your portfolios and be stalwart and steadfast and fiduciary um business words okay
