Automating your Investments
We're going to talk about how to automate your money, but this is one of the cornerstones of the I will teach you to be rich system um how many of us you know, as I said, we kind of look at our bills at the end of the month we see I guess I spent that much with this system you're going to know exactly where schooling you're gonna remember that question three we covered where do I want my money to go that's what this is going to do so we may end in the middle of this but don't worry we'll pick it up and we're gonna talk about investing automating as well who here has never invested their money and I'm talking about in the stock market who here invested? They're not really sure what they're investing in or if they're investing the right way okay, why tell me about that you feel obliged you feel compelled it's kind of like buying a home you're it's something you're supposed to do you don't just let your money sit there you should invest in something but I'm not a savvy investor I don't kn...
ow I don't even know how to properly research a company okay, good, interesting you said you don't know how to research a company that's very interesting and very telling we're going to cover that okay, don't I signed up for with a friend he just finances and I trusted his guidance because I didn't know really anything he was talking about way felt like we should be investing we should be saving and we don't know and so he trusted and do you still trust him? He got in your very interesting and your money is still there? Uh, yeah, we don't know what to do okay? That's that's actually, I didn't know that. Ok, very good anybody else? And we feel like you're not sure what your money is going towards but it's just being invested somewhere okay, so we're going to cover that and I'm gonna show you a really simple way to invest. I have no interest in making any fees off of where you invest. In fact, I'm going to show you where to invest for the lowest he's going to show you why that's important, I'm gonna show you the exact accounts and companies that I use, ok? The exact ones I got a little tired of people being really general and saying stuff like just opened up an investment account, okay? Where what company? Why? How do I know I wanted to be specific about that? I'll give that to you automating most of us don't even think about the word automating when it comes to our money, we think about things like spending we think about things like cutting back, but we don't think about things like automating in the grand scheme of things. Automation is one of the most powerful big wins you can have because when you're tired when you have kids, when you're on vacation, you're automation system will continue running relentlessly, it doesn't get tired, it never takes a break, it always works, but we do way get tired, we get unmotivated way forget so that's why you're automation system is so critical for everyone watching understand that by the end of this but then of today you're going to know exactly where your money's going you're gonna be able to redirect it to a place you want to go and you're actually saving for things that you know are goingto happen you want to take a trip to india in february? Perfect, let me show you exactly how much to say for that know how to do it automatically, alright, so we've kind of covered why to invest, why to automate we know about willpower, we know that we constantly depend on willpower, but we can systematize it and kind of move on focus on the more important things than bill paying and stuff like that, so I want to get specific down I need three different types of accounts for your money in gentle right checking savings investments now, who here kind of like has a checking account, they don't really like it or they get ding with fees or whatever. Anybody who here has a checking account that you've had for, like, years and years because you open it up in college or something like that. Yeah, all right, so I picked three, but I researched a whole bunch of my friends are basically like, hey, we meet just tell me what account use because I know you're a huge weirdo and you probably, like, spent five thousand hours on these accounts. I'm like, actually, that is totally correct. So here are the accounts that I like. I make no money from you going here on my recommendations, I think on my site if you click through my I n g link, I get an affiliate account or link, but I get nothing from referring you hear, uh, these are the best accounts and these are the ones I use because I've done a lot of research and I want to tell you a little bit about why he's agreed these are for the u s but some of these apply abroad as well, and you confined you go to their site checking up I like schwab because it is, uh, number one, you get all your atm fees re funded, all of them three a m at a liquor store you're taken out four hundred bucks atm fee refunded no problem uh you also earn a little bit of interest it's fine I n g I like them because they uh they basically don't send you a bunch of junk mail they have a relatively good interest rate and it's very simple they have a lot of different features I'm going to show you about they were recently purchased by a larger company capital one s so we'll see how that plays out but I've kept my money there and they've treated me very well vanguard great for investing really low fees they sort of invented this this one area of index funds and they sort of treat you right these are all companies that treats you well, they're not trying to gouge now I'm going to show you what to do with this company. What do you do here? If I were you, I would consider opening up an account here I'm not trying to force you to open up an account, but what I've found is that if you don't have a strong foundation for your accounts, then you know you have your automated money flow what I'm gonna show you how to do and you're constantly getting late fees issued on you you're getting people that are like you getting banks that you don't want to deal with etcetera and frankly, I was just sick and tired of the big banks, the big banks that make you feel terrible about your money that don't offer you any features their constant trying to up sell you, etcetera. That's, why I picked these accompany these accounts of these companies, so if you want open up an account here, you can transfer money over, I show you how to do that in my book, if you don't keep your account and you can use my system with your account and maybe later on you decided I want to switch board doesn't matter. Question I noticed that the checking the savings account er it different banks? Do you recommend having your checking and savings of a different banks? Or shouldn't have? Good question? It doesn't really matter. They both transfer online to each other. The truth is that schwab doesn't have a savings account, and I really don't like I n g's checking account that much I like shrubs much better. So that's, why I recommended to you because I only want to recommend the best accounts. The truth is, they're pretty much you know they're kind of linked, so it doesn't really matter but psychologically it's nice to have your savings money in a different account, because then you're not gonna withdraw as easily. As if being in your checking account and I know some people had that concern they there like someone actually sent me a question how do I stop taking money out of my savings account? Right? Because I keep on taking it out and it's I'm not saving any money in the savings account this's one psychological way to get around all right? So how to automate your finances using the automated money flow so let me show you how to do this again. The goal here is that by the end you're only spending one to two hours a month on your finances and your focusing the rest on your creative business on your family on travel, whatever did you want and you're not worrying about my putting enough money in my retirement account are my bills being paid on time? It's all getting done for you so I'm gonna go through the system step by step and I'm going to show you how to adapt it. I know we have a million questions about hey we meet I don't make a salary, I get paid, you know, five thousand dollars one month and then I don't get paid anything for six months I'm a show you how to deal with that well to start with a really simple example here okay? We're gonna start pretending you make one hundred per cent of your money for yourself okay, so you get paid what most of us do when we get paid it just goes right into our checking account, right? Anybody here actually get a check and you go deposit it in the mail or in the in the bank? A couple people. Okay, so in this system again assuming you work for a nine to five job I'll show you their other stuff later five percent that money is automatically taken out and sent to your for one you don't even see what's going on. We know psychologically that if money's taken out before we see it, we don't really miss it. Okay, so this happens automatically? There's no check or anything. It just goes the rest of that money. The remaining ninety five percent come to your checking account. This is your email inbox. This is where the filtering is gonna happen. So now five percent of that is taken to savings. Five percent of that is taken to a retirement account could be a roth ira if you're independent could be a solo for one kid. Whatever it is, notice what I have here in the savings I have sub savings accounts might be saving for a wedding might be saving for a down payment on a house might be saving for a vacation. Why did I do that? Anybody know something very different about having your goals broken down rather than just a big old lump of money in your savings account. Ok, that's about gold. We'll talk about that. Okay, now everything above this is kind of like savings and investing that's like the good stuff here. We've got money, but my credit card is gonna pay itself off by linking to the checking account. Get all the links, all that stuff. I explain that in great detail. In my book, you're gonna pay off regular bills like your netflix in your gym. What is this down here? Guilt free spending? What is guilt free spending spending on the stuff you love without feeling guilty? Why? Because we've already paid off. We've paid our savings account. We've done are investing. We've paid our bills this money here if I want to spend five hundred bucks on anything thousand bucks and I have it guilt free, I'm already paying myself first that the common phrase in money and then we got one more their miscellaneous bill. Some bills can't be paid automatically like some people have, like rent and you can't you know you have to write a check, but you can actually do this automatically. Now you can, um you can if you're red's gonna be the same amount every month, you can tell your bank, write a check send it out on the twenty eighth of each month, so it reaches by the thirty first and send it for this amount and it's totally automatic. This is a paperless system. If you wanted to, you could get checks, but it's all paperless. You could literally not see a piece of paper at all, and your system would continue running. You could be hit by a car. Your system will continue running. You see how this money flow works.