A Guide To Investing For Beginners
Start Early. One piece of advice that I have been hearing since I began earning money for myself.
At age 22, I graduated and started training people, and kept my lifestyle and spending to a minimum. At age 22-25, I earned money and invested back into my business to grow it even bigger. Age 25-27, when I found myself stable, I began various kinds of investments.
Which ones? Read this blog to know my personal finance strategies and know the type of investments that I have been doing.
Remember, these are my personal strategies, I still stand by early investments, not putting your money into a housing estate, instead go for commercial estate, and most importantly why gold is still a great type of investment.
WHAT DO I DO?
I began as a YouTuber, then expanded into creating media businesses that deal in Talent Management and Digital Marketing.
WHAT AM I GOING TO DO MOVING FORWARD?
I am going to continue being a content creator but most importantly I am going to build Tech startups.
HOW DO I EARN MONEY RIGHT NOW?
By creating evergreen content that is packed with information that will be relevant even 50 years from now. It is like creating a massive passive income source. Content will pay you forever, if you play the game right. Even when you are asleep.
As of now the content we have created pays for one of my startups, Beer Biceps media.
As a creator, you earn through brand deals as well. That money is almost entirely fuelled back in the business, either to grow Beer Biceps media or to create sister companies, or to invest in startups. This is called an attack-minded investment strategy.
An attack-minded investment strategy means investing by betting on your own capabilities. Investing with a warrior mentality. But to create armor for the warrior first, it took me 5 years. The armor is what I call financial armor.
MY INVESTMENT STRATEGY FROM AGE 22-27
I only did safe investments that would protect my teams and myself in the case of us crashing and burning. If I wanted to play the game like a warrior at 27, I had to build the warrior’s armor right from age 22.
Age 22 – Creating Habits
Ensuring that my lifestyle was very simple. Not spending money on clothes I didn’t need, gadgets that will primarily be status symbols, and partying which would result in only temporary pleasures.
Age 23- Reinvesting
It became all about reinvesting in myself and in the business. The money that I made as a 23-year-old fitness trainer, I used to purchase content creation equipment and pay my first few salaries.
Age 24- Investing
I feel like the following strategy was a little bit late in my life and I wish I’d begun earlier.
At age 24, I identified some Investment options that were suited to my needs, like low-risk investment options. I set aside a small portion of my money, about 10% to 20%, and invested in low-risk financial options every month. Irrespective of how much I made, 10% to 20% would always go into my savings, not my savings account but my active savings. The most important personal finance lesson you’ll ever learn.
It is different for everyone depending on their goals. For me, I indulged in schemes where I would part with a small amount of money every month. I didn’t actively get into finance because I was honing my content and entrepreneurship skills during this phase.
I do have a few regrets. Not investing in two very safe places-
- Commercial Real Estate
I did not begin my real estate investments earlier. By real estate, I don’t mean buying a house for myself. I strongly believe that you should rent a house until you have enough money to buy that dream house for yourself. But when it comes to real estate, investments you should focus on are commercial real estate. Owning places that could be used as warehouses or offices. This is a short way to earn guaranteed income later in life. I should have saved some money back then in order to achieve this goal.
The second thing I missed out on is gold. Gold is one of the safest investments that you can make as a human being. Historically, the value of gold on average always increases.
Age 25- Founded Monk-E
At this point, I had successfully set up my first business outside of content.
From 2015 to 2018, I had only reinvested in Beer Biceps media. To scale any business you have to pour your profits back into the business. In 2018, for the first time, I had the luxury of founding two businesses, Beer Biceps and Monk- E.
Anything my partners and I earned at Monk-E we poured back into the business, salaries, people, office renovation, and infrastructure. That’s how you increase business profits over time.
Trust me, reinvesting in business is one of the best financial strategies you will ever adopt in your life. If played right by staying determined and aiming for the stars you can scale up your business profits big time.
The downside? Lots of reinvestment.
The upside? There will come a time when you will make more money from the business than you could’ve ever imagined. All you gotta do is keep learning.
Age 26-27- Personal Finance
The years 2018-2020 were about my own personal finance game. Something that’s not spoken about much in our country is Portfolio Management services.
PMS companies are built to handle your money for you. It is like hiring someone for your personal finances.
Two huge downsides-
- The first is that you need to know who to trust. Pick one with a good track record or a relative or someone recommended by a trusted financial advisor
- The second downside, it is really expensive even to begin with. PMS firms service different kinds of customers in the range between the minimum investment of 10 lakh rupees to multiple crore rupees just to begin with.
On the upside, you won’t have to worry about money as long as you’re working with a good PMS firm. It is a relatively safe investment that will compound for you.
You will make money off of the profit that the firm makes for you. Imagine you’ve invested a crore and the firm gives you a 20% profit in a year. They’ve gifted you 20 lakhs for allowing your money to sit in their hands. The perfect scenario for someone like me, who wants to do the bare minimum in terms of money management.
THERE IS ONE MORE IMPORTANT STORY TO BE TOLD
In 2020, we were faced with the coronavirus pandemic. Carnage all over the world, breakdown of so many industries, and the birth of so much newness. The next 10 years will be all about business opportunity and reinvention.
In 2020 I took a hard call of not investing any more money with my PMS firm. Since the lockdown began, I have been working towards building my next couple of Businesses- Level and Big Brain. Salaries, infrastructure, growth – It begins with the energy called money.
So that’s my personal finance strategy at this phase of my life. But I’d like to add a few more tiny
chapters to this story.
- First, this is just my strategy. Other than the armor building I spoke about, the rest is very specific to me.
- Second, the biggest financial advice – begin as early as possible. I’m able to take risks because I played it safe early on in life.
- Third, too many young people, especially from the media industry spend too much money on maintaining their status in public. Spending lakhs on cars, clothes, experiences. So many of them want to show that they’re richer than they truly are. It’s a huge downside of our times, the times of consumerism.
A beautiful quote I read once, “ Broke people try acting rich, Rich people try acting broke.”
Check out this picture of Jay-Z when he was an upcoming rapper. Look at this picture of him 10 years after he became a billionaire. This is how Mark Zuckerberg dresses. This is Warren Buffet’s car.
This was Mike Tyson at his peak. He went broke.
This is NBA legend Alan Iverson at his peak. He went broke.
There are people who want to be rich for the sake of showing the world that they are rich and there are people who want to be wealthy, to be able to create more wealth for themselves and for others. Try being the second kind.
Grow businesses, create jobs.
Invest intelligently. Get into a habit of saving and investing as much money as you can and as early in life as possible. Money will chase you when you chase wealth and wealth will chase you when you chase learning.
Keep learning, keep growing!