Investing is incredibly necessary but can be a very daunting task.
If you can just avoid making the big mistakes, this will give you a much higher chance at succeeding at the game of investing.
In this video I go over the top 3 mistakes in which I believe most people that fail at investing make.
Have you ever want to know the top three financial mistakes that you must avoid in order to have financial freedom and success in your life and do that while walking around Mexico when we are at an 87 degree day we’ve got about 76 humidity and 87 barometric pressure well that’s what we are going to do today.
So let’s go ahead and jump right in if you don’t know who I am my name is Jeff Sekinger I run two finance companies went through traditional corporate finance for a few years realized I didn’t like it and started my own ventures and now have a company called 001.com that has 42 employees and another eight-figure company called orca capital that is a cryptocurrency hedge fund and when I’m going through these try to guess where I actually am in Mexico okay.
Guess in the comments below so number one is actually having no priority with your investments right everyone treats investments like they’re the last thing that you should do you know after your expenses after you spend money on Netflix and groceries and all the things that you need and want then if they have anything left over then they invest it needs to actually be the opposite.
So your investment should be your number one priority you should treat them actually like your number one expense and the reason why you can and should do that is because if you don’t you’re just flat-out not gonna do it but number two is if you have expenses okay you can always negotiate those if you’re coming like I’m talking about being as serious as investing where the point like let’s say you have no money.
It’s going all to expenses right you’re just living paycheck to paycheck which is what over 76 of Americans do okay let’s say that’s you well I’m being I’m talking about being as serious as actually saying hey I can’t pay my rent this month calling the credit card company saying hey I can’t pay my credit card bill and negotiating a lower interest rate and a payment plan before you say oh no screw my investments this month.
I’m just going to put all my expenses that’s how serious I’m talking about everything is open for negotiations your investments need to be your number one priority over everything I don’t care if you’re in a lot of debt. I don’t care if you’re living paycheck to paycheck like I just said it needs to be your number one priority because if it’s not you’re just gonna keep skipping over it over and over again to the point where you get to be 76 and you’ve never had experiences like this where you can travel and do whatever you want to do hang out with the people.
You want to hang out run companies you want to run wearing clothes you want to wear literally having complete freedom options and choices you will never have that if you are consistently not investing money because what investing money is is just sacrificing the pleasures of today for a better future tomorrow so start thinking about it like that like you are setting yourself up for massive success by making that decision by making it a priority number two is you actually need to automate it.
A lot of people don’t have any consistency so they’ll start on robinhood or an app and they never get any type of consistency and the reason why that’s so important is because it takes the emotion out of it and it allows you to build compound interest which is the eighth wonder of the world.
It’s one of the most powerful things you can possibly comprehend and unfortunately humans have a really really difficult time comprehending compound interest which I give tons of examples in my other videos but the reason why it’s so important to automate it which you can do on pretty much any app you just literally like on Schwab so my long-term investments are on swap so go to schwab.com.
This is Charles Robb you type in AIP in the top right hand corner it’s automatic investment plan you can have it automatically draw from your bank account every month right into the account and then automatically invest in new investments I do that on the crypto side as well this is called dollar cost averaging or time diversification takes the emotion out of investing and it allows you to consistently do it over time and not worry about being emotional when there’s a lot of volatility in the market right.
Most people make terrible decisions because they’re making investment decisions on emotion right when it goes down they think it’s going to keep dropping so they don’t add more money in and then when it goes up they think it’s the top of the world and it’s never going to come down they just keep buying and buying and that leads to a higher purchase price a higher average purchase price if it if you would have just dollar cost average.
You have a much lower purchase price which means you have a higher profit margin so I’m serious go set that up it just like allows you to have consistency it is super easy to do you can do it on nearly any platform doesn’t matter if you’re talking about crypto or stocks or you’re investing into REITS right real estate investment trusts.
We even have people do that in our funds we have over 140 investors and they about half of them actually dollar cost average into our funds so that is incredibly important to take the emotion out of it by automating it and again it is incredibly important to do and here’s the here’s the thing a lot of people ask okay.
How much do I actually invest I have no idea like where to start you should always or not always but the majority of people should start at with 10 of your income then you’re probably asking okay what do I invest in how much do I invest first of all can’t tell you what to invest in right.
I’m not a financial advisor or tax advisor or any of those things but and that’s I’ll do another video about how you can somewhat determine on what to invest in based on where you’re at now and where you want to be in the future and how much risk you’re willing to take but it’s best to start with 10 of your income so start investing 10 of your income into long-term investments okay.
So you can automate that every month right if you make 10 grand a month just a thousand bucks a month that gets pulled from your bank account goes right into your investment account another thing I highly recommend doing which most people actually completely avoid their majority of their lives because the truth is they don’t no you know maybe number one they don’t even comprehend this this aspect of it but number two they don’t value themselves enough to actually invest in themselves okay.
The highest return will always be investing back into yourself and you could go ask Warren Buffett and he would he has confirmed that on multiple occasions the most successful investor of all time arguably and I think that’s super important to do at the beginning of your investment career is to put the money back into yourself first so books courses mentors masterminds self-education that actually allows you to level up in life right.
So 10 of your money goes into yourself right number one then into long-term investments when I’m talking to entrepreneurs which we coach dozens on a weekly basis the order of importance is always in yourself then the business and then into long-term investments because you’re going to get the highest ROI on yourself then the next highest ROI is going to be likely your business if you’re a successful business owner.
The third and final mistake I see a lot of people making is too much complexity right so they’re trying to overcomplicate their investment strategy and I see this across the board just in people’s personal lives their businesses and especially investments that’s where people are really going wrong right.
The majority of things are quite simple they’re not all easy but they’re quite simple and a lot of people over complicate them and that’s where they get eaten alive in fees and they stress out about things because they don’t understand them and then make emotional decisions because of that in my personal life right if I’m where if I have clothes.
I don’t wear for six months they’re gone right in my business life right if there’s too many employees here overhead is too high here or we’ve made an application process for leads too complex we see percentages drop right so I’m always looking at things on how can I not get run over in Mexico you know and then investments right in retirement accounts there’s about there’s usually about 17 fees in like the average general retirement account and most people paying up to three percent which is three percent a year of assets under management which is quite high for people to literally invest into a freaking mutual fund that gets you eight percent a year right.
There not even accounting for inflation you got five percent so really look I’m not going to go on that street because it’s about to be really really loud for you guys but look at your investments right now and ask yourself how much do you understand them and how complex are they right.
A lot of people think that their investment strategy for the rest of their lives needs to be trading people don’t understand the difference between trading and investing trading is pulling money from the market that’s a skill you develop just like riding a bike or surfing or crossing the road and not getting run over again how quick do you think we can do this one we are going to risk reward you know what I’m saying that is something I always ask myself is the reward great enough for the risk if it is you make the decision you commit to this decision.
So anyways people think that they need to have they need to start trading to be successful with their investment strategy that is not the case you do not need to become some crazy trader that pulls money from the market I think it’s like in the high 90 percentile like upwards of 96 if you just dollar cost average the market which I just talked about in number two about automating everything if you were to just do that over time you will outperform about 96 percent of the active money managers okay.
So it can really really be that simple but people try to complicate it they think they need to trade and sell this and buy that and use leverage and options and futures and all that stuff majority of time if you just keep it simple keep it consistent and do it and prioritize it you are going to be in a great great place okay.
Let me know about what you think about my top three mistakes to avoid also let me know where do you think I am I don’t know where I am I’m asking for your help right I’m just trying to get home see what I’m saying so let me know in the comment section where you think I am and what you would add as number four thanks so much for watching this video I’ll see you here on this next one.