The 5 Investing Strategies to make the MOST Money

What's up, you guys? It's Graham here. So I think it's pretty obvious if you invest your money, you want to make as much money back as you possibly can. Because there's so many different ways to invest, I want to focus on the most important points that are going to apply to just about any investment that you do, and why these are so important, and how this will end up making you a lot more money in the future.

So anyway, I really hope this video is helpful, and I would love to see you guys in early retirement, driving like Ferraris and Lamborghinis, making it rain at the club, bottle service, and just living it up. So that's the whole point; that's the goal of this.

So let's get right into it. The first one that will apply to just about any investment that you make is to start as early as you can. The saying goes, "The best time to plant a tree was 20 years ago; the second best time to do it is right now." This is one of the biggest advantages you have of being young and investing today is that you have the power of time. The longer you invest, the more money you're going to end up making.

So just to give you guys an example of just how absurd this is, consider this: if you invested $1,000 a year from the age of 30 into the age of 65 and got an 8% return, you will have had two hundred thousand eight hundred dollars by the time you're 65, which is good. We're not gonna lie; we're not gonna talk down about two hundred thousand dollars. By the way, no, that's fine for a thousand dollars a year.

But just imagine if you had started at 18 years old instead, the same one thousand dollars per year, eight percent return until you're 65. You will have had, by the time you're 65, six hundred and sixteen thousand dollars instead of two hundred thousand eight hundred dollars. This means that every year from the age of eighteen to thirty years old is worth twenty-nine thousand seven hundred and fourteen dollars for every one thousand dollars you invest early on.

So going from one thousand to twenty-nine thousand seven hundred and fourteen dollars is huge. That's why right now is the time to ramp it up as much as you can, not put it off for decades and think, "I have plenty of time at sixty-five years old." Like, you know, that's never gonna happen. I'm never gonna be 65 years old. One day you go, "Oh, oh, oh."

This is the popular one: "What if I die tomorrow? You know, I could be dead next week." Chances are, you're not gonna be dead next week. Chances are you're gonna be living to sixty-five or probably in our lifetimes, we're going to see in the hundreds easily. So don't have that mentality. The best time to invest is right now, and especially if you guys are young right now watching this, it's so important to ramp up the investments as much as you can because these are the early years that are gonna get such huge returns later on in life.

Now the second point I want to make that will apply to just about any investment out there is to reinvest as often as you can. This ties into the first one in a sense of compound interest. That is actually called the eighth wonder of the world by Albert Einstein. Not even kidding; that's true. He actually said that the eighth wonder of the world is compound interest.

Compound interest is really something that's so massive that begins at such a small scale. Think of it like an avalanche, for instance. An avalanche starts off with frozen little drops of water that continue to build and build and build into maybe like a little bit of a snowball. Then it turns into something bigger, and then it turns into something bigger, and then all of a sudden you're running for your life because you have a massive avalanche of compound interest behind you.

The whole premise here is that your money ends up making you more money. The money that it made ends up making even more money in addition to the money that it made. Yeah, so as an example, let's just say you invest a hundred dollars today, and at the end of the year, it's worth a hundred and ten dollars. Then let's say you're just going to reinvest that hundred and ten dollars back, and you've got the same return you did this year, and next year it's worth a hundred and twenty-one dollars.

Basically, that extra ten dollars that you made the first year is now being reinvested; that got you an extra dollar on top of your original investment. Now, stay with me here because this is where it gets pretty cool and pretty interesting. I'm excited about this. If you do that ninety-seven more times, your one-hundred-dollar investment will have turned into one million dollars! Haha, that's straight-up math; that's straight-up math right there. Seriously, check it out: one million dollars from one hundred dollars if you do that ninety-seven times.

Now, before anybody gets hurt here, because I know there's somebody watching right now. There's literally somebody watching right now who's like, "Wait a second, wait a second. Dislike, unsub. Wait a second, Graham! You didn't tell people that ten percent per year every single year for ninety-seven years is unrealistically high." Smash the dislike button! You also didn't tell people about inflation! Unsubscribe! Disappointed in you, Graham! Disappointed!

But listen, the whole point of this is just to give an example of what's possible with compound interest and what happens when you reinvest your money. For everybody, probably for the one person out there who's triggered right now, that's why—that’s the whole point of this is just to give an example.

My second point with this is that especially if you're young, reinvest all of the money that your investments are making you, or at least reinvest as much of it as possible, and just watch it grow.

Now the third point I want to make that applies to a lot of investments—not all of them, but a lot of them—is to invest long-term. This is my biggest philosophy when it comes to investing. I don't care what it's worth five years from now or even ten years from now. I just care what it's gonna be worth thirty, forty years from now, and that's really my goal.

Now some people out there are traders, they're real estate flippers; their goal is to get in and out as quick as possible and make as much profit as possible in the shortest amount of time as possible. That's not me, and that's not my philosophy. Everyone has a different strategy; that's personally not mine. I'm one of these people that prefers to buy it right once and then forget about it and move on.

It's also statistically proven that trying to time the market underperforms time in the market. And again, for people that are triggered out there, they're gonna say, “Yes, but I invested in these stocks and I made way more than you made in stocks,” or whatever they're gonna say. Sure, but the percentage of people that can consistently beat the overall index of stocks or market in general is so minuscule small that I prefer to take a safer long-term approach of just buying it, forgetting about it.

If you're like me and you invest long-term, having a short-term approach doesn't really give you enough time to recover from any downturns in the market. Also, overall, things never really go up in a straight line. Usually, what ends up happening is that things will go up a little bit, and then down, and then up, and then down, up and down. It's a bit like a yo-yo. But overall, the trend is going up, even though along the line it's just like a bit like this. So just hold. That's why it's so important to have a long-term outlook.

Now the fourth one when it comes to investing, and again, I think it applies to just about anything, is to diversify and don't put all of your eggs in one basket. Now this is less about trying to maximize your returns and more about just loss avoidance. Like, I'll admit, sure you can hit it huge with one really good investment, or you could end up risking all of it if it fails.

Any time that it comes to investing, it's really important to diversify your investments as much as possible, and preferably try to keep a little bit of cash on hand just in case another opportunity comes up, so you have some money to deploy into that.

Even though I often recommend just like investing as much money as you can and burning the bridges and burning the boats and going all-in, it is important within that to have some sort of liquidity just in case you need it. For instance, for me, even though my money is like ninety percent in real estate and then ten percent in stocks and the car over there and a little bit of cash and some other stupid stuff, even though it's ninety percent real estate, it's spread out between five different properties.

And within that, it's spread out between three properties that are owned outright and then two other properties that have mortgages on them. Then also within that, it's leveraged between single-family homes and then multi-family homes as well. That means that if one property has a vacancy or a large expense or something happens with it, I have four others to back it up.

The same thing also applies to your income, and even though for me, like 80 percent of the money I make is working as a real estate agent, I diversify the income that I make through rental income, through stocks, through lovely YouTube ad revenue—when they don't demonetize my videos. YouTube, you gotta make sure you stopped doing that. Then I also have a few other passive income sources that I can always fall back on.

But that's the power of diversifying, not only your investments but your income as well. Now my fifth suggestion, and this is probably something that a lot of people are tired of hearing, and it's kind of boring, but it's probably the most helpful of any of these. It's actually probably the most important: don't invest in something that you don't fully understand.

The worst investment that you can ever make is something that you just don't get. That's how you end up losing money. Also, this is really important, but a few of you guys have been upset that the BitConnect meme is dying and isn't appearing as much in my videos, so I'm going to include the BitConnect meme: this is what happens when you don't do your research.

And this applies to just about any investment out there. If you ever rush into an investment without fully understanding it and without fully understanding the risks associated with that and being cool with that, it's not a good investment to make. Anytime you don't fully understand something, the best thing to do is not invest in it. Learn more about it.

The best way to learn about it is a website that will answer 99.999% of your questions or anything you ever want to learn. It's really cool, what it is? Google.com! If you're unsure about what investment you want to make, go to Google, read as much as you can about it. Check out forums, check out Reddit, check out BiggerPockets, check out any sort of investing website. Read as much as you can about it, learn as much as you can about it, and just immerse yourself as much as you can before you invest any money.

And also, it's really important not to invest any money that you can't afford to lose. Now, even though some investments are way safer than others, at the same time, if you're like, "I need this money for rent this month and I need this money for food, but you know what? This thing over here looks pretty good. Maybe I'm gonna put it in that really quick, double it, and then I can pay my rent and have some extra money," don't ever do that.

Don't ever do something like that. I think that goes without saying, and that's my fifth point before I start rambling too much. So as always, you guys, thank you so much for watching. I really hope you enjoyed this.

And then the last thing I want to mention is that if you want to become a real estate agent or you're a real estate agent looking to expand your business, I have a program in the description. The details—everything I've done from A to Z, how to get leads, how to get listings, how to handle buyers, and really everything I've done in my career from zero in sales, no experience, no connections, no anything to over 120 million dollars in sales as a real estate agent in just nine years—everything is in the description.

Make sure to check that out. Thank you again for watching, and until next time!