7 Things to Consider Before Investing Money In The Stock Market • What Should I Do Before Investing?

in this video we’re gonna be talking
about the things that you should consider before you invest any money at
all into the stock market even before you invest your first $1000 into the
stock market that’s coming up right now what is up my YouTube family my name is
Mike this is my sidekick chipper welcome back to money and life TV if
you are new to our channel highly considered subscribing because every
single Sunday on this channel we make new videos that are gonna help you with
your finances your investments taxes and videos that are gonna help you not only
with your career but just with your everyday life as well have you guys been
I hope your week is going well I’m filming this it’s early December of 2017
trying to get the whole Christmas shopping thing done have you guys even
started shopping for other people oh it’s it’s busy but I love this time of
the year it’s so much fun and I just love getting some downtime and here in a
few weeks and being able to spend time with friends and family that’s my
favorite part of Christmas but you guys are here to learn about
investing so that’s what we’re gonna talk about today now if you have not
already seen my video on how to invest your first $1,000 in stocks make sure to
check it out I’m gonna link that up right here and
I’m also going to link it down in the description section down below so make
sure to check it out this video is really a follow up video or a
continuation video of the video I just mentioned it’s gonna cover some of the
main things are what I believe to be the main things people need to think about
and consider before ever investing now it’s not all comprehensive but I think
you’re gonna agree with some of the things I’m about to say and as you’re
watching this be thinking about other things that might make an impact and
make sure to leave that in the comment section down below because if there’s
something I miss please be sure be sure to share it with some of our other
viewers what other things people should be thinking about the video I’m about to
show you actually filmed a few weeks ago it’s gonna cover some of the main points
but after I went back and watched it I wanted to add a few more which is why
I’m kind of breaking it up like this so you’re about I’m about to show you the
footage right now so sit back and enjoy and then once that’s done you’re gonna
see me back here again wearing this shirt just like magic
just like magic so sit back and enjoy some of the main reasons I think people
should consider before investing here’s that footage right now okay so let me
talk about some of the important considerations I mentioned at the
beginning of this video that you really should consider before investing
anything at all into the stock market so the first one is learning have you
learned have you done any research at all before investing this money
depending on how interested you are investing people do different levels of
research some people just do a ton of research other people don’t do any
research at all and some people do it this is a tiny bit of research before
making an investment if you haven’t done any research at this point and read any
books I would at least hold off from investing that first thousand dollars
and go check out a couple books on investing and you don’t have to buy them
you can go to your local library and check them out for free and I will link
up in the description below some of the books I recommend so you guys can check
them out for yourself and I’ll also be doing a video review on some books in
the future that I would recommend or at least that I from I felt have really
helped me in investing so like I said invest your first in at least invest
some money in yourself in your own learning your knowledge of the stock
market investing before you invest your thousand dollars if you’re diving into
stocks whether it’s one or two or more before learning anything then you’re
practically gambling and I do not recommend gambling there’s tons of data
for you guys to look at so just take some time look it over learn a few
things and then start investing don’t invest right off the bat just learn a
little bit and then invest the second thing I want you guys to consider is
really it’s your debt there’s a lot of people who are so eager to invest and I
can tell you I was one of them I had student loans before I had car payments
etc and so I was trying to invest during that period and it was a very bad
decision and the reason that was a bad decision for me is because in the back
of my mind I was in a sense worried about losing money right so I haven’t
earned this money have worked really hard for it and I was worried about
losing it as extra worried about losing it because I knew I had student loans
I had a car payment and I credit card payments to make I had all these other
things on the back of my mind and I don’t know if you guys have started
investing yet but investing can be really emotional I know it’s hard to
believe it but it’s like an emotional rollercoaster at times and so it’s taken
me a while to get over that and I’m good now but
initially for the first year – I wasn’t I was very emotional when I put my money
in the market and watch it go up or down it’s it doesn’t feel good when it goes
down it just doesn’t and if you have so what I’m saying is if you have a lot of
debt whether it be student loan debt its credit card debt car payments or
whatever it may be now if you have a mortgage I don’t really care if you have
a mortgage if you have a mortgage great you know still invest but if you have
things like your student loan debt credit card payments and things like
that at least pay those off first I really recommend that because if you
have no student loans no car payment and no credit card payments and no other
tiny little debts like I said I’m not talking about a mortgage I have a
mortgage and I still invest but the the but the other stuff that if you get rid
of the other stuff you’re gonna have so much more confidence and so much more
comfort when you go to invest and it truly made me a better investor and a
different I had a different feeling when I went to invest once all my debts were
gone because then at that point I was building I had a solid foundation
beneath my feet so when I put that money in to the stock market when I invested
that thousand dollars it didn’t matter if I lost it because one I wasn’t gonna
lose my car I wasn’t gonna default my student loans and I wasn’t gonna have to
worry about not being able to pay my credit cards my house payment etc that
was all taken care of so you’re gonna be you’re gonna behave better emotionally
you’re gonna be stronger if you have your ducks in a row if you’re building a
solid foundation under your feet before you consistently start to invest so
really consider that you might say Mike what if I have a company that I’m
working at where they’re gonna match my 401k contribution well if you feel
comfortable doing that even though you have some of these other debts well go
for it you know that’s like I said it’s your money guys it’s not mine it’s yours
but I just want you to have some perspective of why I do what I do and
what you might think about a little consider a little bit more before making
some big decisions but if you want to invest to get your match at work then go
for it you know I’m looking up not gonna ding you for wanting to do
that but in terms of overall though I really do recommend paying down your
debt or paying off your debt before really going into investing because
you’re just gonna be so much of a better investor and that’s at least that’s what
I found to be true for myself when I had no debt alright guys as promised I’m
back here I am again wearing this shirt not wearing another blue shirt guys
probably notice I have a lot of blue shirts no joke I probably have like
seven or eight of them okay so there’s a couple other points I wanted to make or
share with you guys when I was filming that video that I didn’t get to make
back then and one of them for sure is having an emergency fund I know I didn’t
initially mention that and you were probably watching you’re thinking hey
why isn’t any messaging an emergency fund well that’s definitely one of the
things I would recommend and what an emergency fund is very common is to have
three to six months worth of exploiting expenses saved up in case of an
emergency like you lose your job or there’s a medical incidence or something
where you need a lot of money fast so having an emergency fund in place is
gonna help you stay afloat and also it’s allow you to be in a better investor
because what I see people do is a lot of people make the mistake of investing too
early and I’m not talking about their age I’m just talking about they haven’t
got an emergency fund set up and they haven’t done some of the other things I
mentioned previously in this video and so what happens is when they go to
invest that money whether it’s in their 401k whether it’s in an IRA or Roth IRA
or wherever and they end up having to take the money out and unfortunately if
they’ve already put that money into a retirement account
then they have to pay penalties and often more taxes on top of that just to
get their money out when really had they have set aside some money in the first
place they would not have to do that and because when you have to pull money out
of your retirement account you are killing I mean literally killing your
chances at wealth because you need that money to compound for you be working for
you and it just really hurts you and set you back so as much as you can build a
solid foundation under your feet so you don’t have to pull from it or take out
401k loans or things like that the better off you’re gonna be and the more
likely you’re gonna increase your odds of becoming wealthy someday okay another
thing I wanted quickly mentioned is I would not
recommend you invest at this point yet if it’s going to cause you to take out
more debt so what I mean is like if you’re about to make a large purchase
let’s say it’s a home purchase or a car purchase or whatever or something that’s
gonna cause you to take out even more loans or more debt than I would say that
you’re not ready to invest just yet just I would say just hold off a little bit
longer and until you’ve kind of got those expenses squared away and if you
find yourself just struggling either you have a money management issue where you
need to get your expenses more under control or you have an income problem
which is very common that those you have to handle whether it’s an expense issue
or an income problem or a combination of both make sure you get those handled
quickly so then you can go about investing the last thing I want you guys
to think about at least mentioned in this video like I said guys I’m not
gonna cover every idea in the world so please if you have other things that you
think should be mentioned or you feel with the appropriate please share them
in the comment section down below because I would love to hear your
thoughts your opinions on this subject ok guys I’m about to ask you a question
to be honest I don’t think I actually knew the answer for myself but now that
I know what I know I want to make sure I ask you guys this and at least have you
guys think about it is when you’re about to invest let’s say you are ready to
invest let’s say you’ve got everything else we’ve talked about in this video
already covered you’ve got your debts paid for you’ve got your emergency fund
so you have a solid foundation you’re like Mike I am ready
I’m let’s go brother let’s invest like okay so what I want you to think about
now is with that money you’re about to start investing you are you gonna need
it in five years from now or less if you’re gonna need money in less than
five years this money you are about to invest I would probably just put that
money in a brokerage account you can still invest in a brokerage account but
at least if it’s in a brokerage account you can then get it out without any
issues without for any reason you want you can pull the money out so whether it
yours putting some money aside in a brokerage account to help you save up
quicker by investing the money to save them for home or something like that a
very very large purchase and you want to just have a better return on your
investment than a savings account because obviously you got your money in
the bank your obviously losing money because inflation
is eaten up your wealth but with that I would recommend a brokerage count now if
you’re saying Mike I’m ready to invest I’m ready to invest for the long haul
that you’re like I want to put this money in the market I want to invest it
for over five years you know and tell the damn retired and
have this money grow and grow and grow for the next 10 15 20 30 years and for
you I would probably instead of opening a brokerage account I would say at that
point if you’re depending on how old you are and it’s the younger the better
honestly the younger you start the better is open a Roth IRA if you can
open a Roth IRA and have that money growing tax-free I would totally do it
in fact because you go looking right now you can only put fifty five hundred
dollars a year into a Roth IRA and so the sooner you can start at the better
but what’s great as that money grows over time you can get that money out
tax-free some day so if you have dividends in the net account for example
that’s gonna be tax-free income for you someday and I’m gonna be making videos
on Roth IRAs and all the rules about them very soon especially as this coming
taxes approaches I’m gonna do more videos on education credits and
deductions and also how Roth IRAs work because the Roth IRA is one of the best
investments you have and if you’re ready to invest for the long term I would
start there and then go into your 401k etc from there so just think about that
though guys the question I just asked you if is do you need the money in five
years or less brokerage account if you’re ready to invest you don’t need
this money for years and years and years down the road I would say Roth IRA or
put that money into your 401k alright guys I really hope you found this
information helpful hopefully gave you some perspective you got some things to
think about hey if you’re like hey Mike you missed this you missed that just no
problem leave it in the comment section down below I would love to hear your
thoughts your opinions and just share that information with everybody in this
community because that’s what this channel is about is helping people
improve their financial position their career and their life if you guys liked
the video make sure you smash that like button share this information with a
friend especially a friend who enjoys investing and make sure to subscribe if
you have not already all right I love you guys you guys are always a fantastic
audience thank you for sticking with me this long not only on this channel but
this video this thank you for taking time out of your day to watch this
and I will see you guys in next week’s video love you all
have a wonderful evening and have a great week bye guys
live life on caged

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