Money Tips For Beginners
The Eighth Wonder Of The World
If I could share with you the biggest piece of financial advice that helped me become a millionaire, it would be this…
College teaches you a lot of things — how to be financially free is not one of them. That being said, I thank God for introducing me to a college professor of mine that would go on to change my philosophy surrounding money. I walked into his office one day after hours. I asked him the fundamental question, “what should I do with my money?”. He was gracious enough to take the time to teach outside the curriculum of his marketing class and to expose me to the life skills that have gotten me to where I am today.
What my professor taught me that day is exactly what I wanted to teach to you. It’s not complicated but it requires consistency. It all revolves around one of the greatest things ever created, compound interest.
The first thing you must know about is a Roth IRA. I don't know how old you are or your financial background, but I know that this is something you need. A Roth IRA can serve anyone who contributes as little as $5 a day. In turn, you will be rewarded with a retirement plan that you can bank on! Of course, the longer you invest and the more you invest, the higher payout you will receive.
For full transparency (I am not affiliated with them at all), Vanguard is one of the most amazing places to invest your money. Where you put your money inside of the Roth IRA matters. You have a few different options…
- Keep it in cash. I don't see the point of this; don't choose this option
- Invest in a mutual fund. This is essentially trying to invest with people who think they are very smart and believe they can beat the market rate. Again, I don't suggest this method.
- Invest in index funds and ETFs. This is the option that Warren Buffett himself says most people should invest in! Index funds and ETFs are basically robots that match whatever the market does. It is fact that over the years the market has generally gone up and will continue to do so. This makes investing in index funds and ETFs over a long period of time one of the safest ways to invest your money!
Now I can’t tell you which specific funds to take for a couple of reasons. First of all, I am not an accredited financial advisor. I am just someone who learned a valuable lesson from a business mentor of mine; I seek solely from experience.
Lucky for you, Vanguard and other similar investing platforms often have quizzes that will help you determine which funds to invest. They will ask for your monetary retirement goal and the age you’d like to retire at. The outputted recommendation will be based on your risk tolerance and your goals. As long as your money is balanced into a variety of index funds and ETFs and you have your Roth IRA set to auto contribute, you are set.
A lot of the side hustles that I teach come with a lot of risk. Many will try but only some will succeed. This strategy, however, is a guaranteed route to financial freedom! The more you can save and invest, the greater chance you have of being free later on down the road.
Some of you may be asking what happens when you have more than $5,000 to invest a year (this is typically the max). In fact, there is a cap where, if you make too much money, you may not be allowed to invest in a Roth IRA. This is the position I am in and, for the sake of this post, it is a great problem to have. A lot of other opportunities will be present if you have achieved such a high level of income as I have, I promise.
The moral of the story is that you don't need to make six figures to be a millionaire — you need to invest in a Roth IRA.
It would mean the world to me if you could comment below what you think about this! Are you ready to check it out or do you need to research Roth IRA some more?
Other than that, thanks for reading.
Peace and God bless.
I make new content every single week, so be sure to subscribe to my Youtube and follow my Instagram @brambilabong and TikTok at @AdrianBrambila. I also have tons of resources and courses on my website that you won’t want to miss. Head over to www.adrianbrambila.com to learn more about what I do and how I live a financially free life.
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