What's up you guys, it's graham here so in the last few months this channel has grown more than i ever would have imagined and because we have so many new people joining us. I think it's really important that we get back to the basics and discuss some of the best strategies that you could begin using today to begin creating passive income building wealth and investing your money, and it really all begins with how to invest 100 a week. Now, here's why this amount is so significant. First, even though 100 a week doesn't seem like enough money to one day buy a mansion and a ferrari believe it or not a hundred dollars a week is enough to make that happen.

If you could follow this video consistently and invest a hundred dollars a week for 40 years at an eight percent return, you will wind up with just over one and a half million dollars, and even though i can't speak for real estate values 40 years from now, Here's a house for eight hundred and seventy five thousand dollars and here's a ferrari for a hundred and forty seven thousand dollars, and even if you buy both of those outright in cash you're still gon na have over five hundred thousand dollars left over. All from investing a hundred dollars a week, that's why it's so important to learn these now as soon as possible, because the sooner you start this, the more money you will make. So with that said, if you guys enjoyed these topics of how to turn 100 a week into one and a half million dollars - and you find this even remotely helpful just do me a favor and smash the like button for the youtube algorithm. So thank you.

So much it means a lot and we're gon na begin right over here at my desk, all right, so the first step to investing a hundred dollars a week is to first have a hundred dollars a week to invest okay, but seriously. I want to talk about this one first, because in the event, you don't have an extra 100 a week to invest. We got to get you an extra 100 a week to invest and if we break that down just a little bit further, that works out to be 14.28, five, seven one four, two, eight five, seven cents every day. So the first thing that i would do is carefully look through your day-to-day spending and just see if there's a way that you could reduce your overhead by 14 a day.

Perhaps that means not eating out or maybe you negotiate your insurance rates or maybe you cancel your cell phone bill and just go and watch for youtube videos, or maybe you could switch to a less expensive cell phone provider or maybe you cancel spotify and just listen To the ads, regardless of the method, from my own experience, consulting with hundreds of people on their personal finance spending habits, i would venture to say that the majority of people would be able to make this happen just by cutting back on their current spending. And that's it, but for anybody else you simply can't cut back any more than you already are. Then it's really up to you to make up that difference in income by potentially working a part-time job, switching careers, learning, a new skill or doing anything else. You can to increase your income and no joke.

But if this is you, then thinking about investing is not going to have as good of an roi as increasing your income is so finding any extra work or switching careers should be a priority at this point until you have the money left over to consistently save And invest next step two once you have 100 a week, it's really important that you begin to put together a three to six month: emergency fund and listen. I know guys it's not exciting to talk about building up a three to six month. Emergency fund, but sometimes making money is not all exciting. The reality is that investing your money and making millions of dollars long term is rather boring, and these strategies are not as exciting as going to the casino and throwing it all on red.

Instead, the majority of this is rather uneventful and not a lot happens early on, but if you want to make millions one day, this works nearly every single time. So first, you got ta, be okay, setting up that emergency fund. Now this is all just a savings. Account that you could keep in cash to cover three to six months worth of your expenses in the event that something happens, you lose your job.

The money printer stops going burr, where the stimulus deal just never works out, at least if an emergency like that happens, you'll have three to six months worth of overhead to cover all of your expenses until you can get back on your feet and doing this is Incredibly easy: all you got to do is: throw your cash in a savings account with zero fees. That pays you above a point: six percent interest rate. I personally use ally bank for the majority of my excess cash, but i also use yada bank, which is the bank that i invested in. That pays.

You right now slightly above a two percent interest rate when you account for all the prizes and by the way, if you want to sign up and get a bonus 100 tickets into the next week's drawing use the link down below in the description. And they will also be giving you an extra ticket for every single 25 dollars. You save, but really as long as you're earning above a point. Six percent interest rate from a savings account i'm happy and really hopefully, you'll never need to use that emergency fund.

But at least it's there in the event something happens, and a hundred dollars a week should go a long way towards getting this foundation taken care of early on now step three we're going to be getting into the juicy stuff that i'm sure you guys all want To hear about - and almost everybody should be doing this, if you aren't already and that's using a hundred dollars a week towards maxing out your roth ira now for anyone who's not aware what this is. This is just a tax advantaged retirement account that lets. You contribute post-tax money, meaning taxes have already been taken out of what you contribute and then by the age of 59 and a half you could take out all the money in the account completely tax-free. Now, here's how big of a deal that is, let's just say you open up a roth ira at 18 years old and you contribute 400 a month to it and then, let's also assume you're averaging an 8 return on your money and by the time, you're 60 Years old, you will have contributed 201 600 into your roth ira over 42 years and that's just with 400 a month, but because your money has been invested, the entire time that total account value has grown to one million six hundred and ninety eight thousand eight hundred And twenty seven dollars and ninety four cents by the age of sixty that leaves you with nearly one and a half million dollars worth of profit.

But here's the thing technically. Had you invested that money? Normally without a roth ira, you would have to pay taxes on that one and a half million dollars worth of profit and, as we all know, it's unnecessary to pay taxes like this. If it could be easily avoided - and that's where this comes in a roth ira circumvents the tax, you would owe because you paid your taxes already upfront on the money you invested, leaving you with the entire amount, completely tax-free at the age of 59 and a half And prior to that, you could take out whatever money you put in the account without any fee any tax or any penalty. That means, if you contributed twenty thousand dollars into that account over six years, you could take out that very same twenty thousand dollars, except any excess profits have to stay in the account otherwise you'll be subject to a 10 fee and pay taxes on it and uh Yeah, that's no fun, so don't do that instead just invest what you intend to hold long term until retirement and then you could buy that house in ferrari.

So really in terms of a roth ira, a hundred dollars a week is the perfect amount to invest and nearly max it out each and every year, and for the record i got ta mention the roth ira is not the investment itself. It is simply the account from which you invest in so you're still going to need to invest your money within the roth ira, like with stocks or with index funds index funds are what i do and for most people watching. I would just recommend a very simple low fee index fund that follows the total stock market or s p. 500.

Here's a few examples. I like fizzrocks v phi x s c h, b, vu spy or anything else like this. A lot of these funds historically have averaged about a seven to eight percent return with dividends, reinvested, adjusted for inflation, so i think long term. These should all be pretty sound investments in step.

Four. Another alternative to a roth ira is investing in a 401k and, depending on your employer, this one could be even better than a 401k. So here's what you need to know this is an account that you invest pre-tax money into, and then you pay taxes. When you begin withdrawing the money after the age of 59 and a half for example, if you invest 100 a week into a 401k you're going to be taxed as though you've made 100 a week less on your paycheck, that saves you money up front by lowering Your tax bill, thereby giving you more money up front to invest with to then make you more money, but, like i said the catch here, is that you end up paying taxes on this money later in retirement.

When you withdraw the money from the account - and i got ta say if i were a betting man - i'd probably venture to say that taxes in the future will be higher than the amount that they are today. So really. From my perspective, the 401k only makes sense in a few scenarios. The first is when your employer offers you what's called a 401k match, which means they will match your contribution dollar for dollar up to a certain amount.

Essentially, that just means you're, doubling your money instantaneously. With zero risk whatsoever, now the rule of thumb with doing this is that you should always do it always no matter what don't hesitate if your employer has a 401k match always take it always take the employer, 401k match up to the maximum, always no matter. What and second a 401k also makes sense if you're in a really high tax bracket right now, and you know, or you think, you're going to be retiring in a much lower tax bracket in the future. So, for example, maybe you're making 200 000 a year now, and you know in like 10 years from now you're going to be retiring off an income of 40 000 a year.

That way, you could save money on taxes up front and then pay taxes in the future at a much lower rate. Now the variable here is that you end up making more money in retirement or the tax rates go up so that you end up paying more money in the future than you would pay today, and if taxes go up in the future too, then you might end Up paying more, which is a bit of a risk with this again, this really all depends on your situation, but i would say, for 99 of people out there at least contribute to the 401k up to the employer match and then anything else after that, i'd probably Recommend just a roth ira, but again that's just me and i have a feeling. If a hundred dollars a week is all you have left over and your employer does not offer an employer match in the 401k, then most likely a roth ira is going to be the best option for you step five. The next way to invest 100 a week is another not so exciting one, but this one could potentially be worth the most amount of money long term.

If it applies to you and that would be using 100 a week to pay down any high interest rate debt. In the event, any of you watching have credit card debt, a personal loan student loans at a high interest rate or really anything else over six percent chances are the best option, for you is using that hundred dollars a week to pay down that debt until it's Nothing now here are my thoughts on this. If you invest your money on average you're likely to expect anywhere from a six to twelve percent return on your money, and you take on the risk that some years you might actually lose money. On the other hand, by paying down high interest rate debt, it's really the equivalent of you getting a guaranteed return at whatever the interest rate is because otherwise, if you didn't pay it down, it's costing you that amount of interest so, for example, paying off a credit Card with the 20 interest rate is the exact same equivalent of you getting an immediate, guaranteed 20 return on your money, and the same thing applies to any outstanding loan that you have so there's really no downside to this and the savings you get from this are Instantaneous now, on the other hand, if your interest rate is below four and a half percent, then it might be a good idea to invest the difference elsewhere, where that money could make you more than that, but anything above four and a half percent, and i would Probably recommend you use some of this money towards paying that down.

Now again, this might not be as cool as throwing all of that money on tesla call options with robinhood, but statistically this is going to be the best use of your money afterwards step six. I know it's super cliche to say this, and every video recommends this, but you know what no shame i got. Ta say it depending on your circumstances. Sometimes it's better to spend a hundred dollars a week, investing back in yourself.

Here's the thing when you look at the initial roi of investing 100 a week in the very beginning: it's not really a lot of money, even if you get this incredible, 20 return the first year that could pale in comparison to the amount of money that you Could make for yourself, you could have the ability to earn an extra thousand dollars a month with the proper training and certification, and especially when you're young, making more money could set you up on a completely new trajectory in terms of building long-term wealth. For example, 100. A week would pay for pretty much every single money-making book out there in existence. You could also use that towards paying for a trade school or a certification in some sort of specialized industry.

You could also take new classes online to progress. Your career 100 a week is more than enough to progress whatever you're currently doing, except maybe that's not enough to pay for harvard at full tuition. But besides that, you don't need harvard to make a lot of money. Just take this section to heart and if a hundred dollars a week extra is all you have at your disposal.

Consider investing some of that back in yourself. Books and career certifications are probably going to be the best use of your money at this level, and the goal is that doing this is going to help make you more money long term, so that that way, you'll have more money left over to save and invest And finally, step: seven: if you don't want to follow anything that i just mentioned, but you still want to invest, then i would recommend opening up a normal taxable brokerage and then just investing in that, for example, the free stock trading app weeble is now offering you Three free stocks, when you deposit a hundred dollars in the platform until the end of october, with one of the stocks potentially worth all the way up to one thousand six hundred dollars. So you may as well use that a hundred dollars towards getting three free stocks, because why not it's free money, there's also plenty of other free stock trading brokerages out there like vanguard, charles schwab, fidelity ally, robin hood and so on, and then from there. You can just invest your money freely, and by doing this, you would have access to all of your money anytime.

You need it without paying any penalties for cashing out before the age of 59 and a half. However, any profits you make from this will be taxed, which is why i recommend you familiarize yourself with the benefits of long-term, investing and long-term capital gains tax, and you should also really understand which tax brackets you fall under. So you know exactly how much tax you're gon na have to pay. Now, as far as what to invest in you guys know me, i'm just going to recommend a broad index fund or etf that covers the s p, 500 or total stock market index.

And if you want to start dabbling by buying individual stocks, just really understand exactly what you're investing in. Do your own research and stay far far away from reddit's wall street bets? And lastly, the final option is that you could use some of this money towards starting your own business. That has the potential to make you even more money. This might be enough to buy some basic equipment to get going.

It could be enough to get some certifications or get your license to sell real estate. It could be enough to buy camera equipment to make youtube videos. The sky is the limit, but the point is investing 100 a week to start a business could end up making you significantly more than investing 100 a week in pretty much anything else. I would first start out by taking a look at the things that most interest.

You and then see if you can incorporate a business within that. For me, i was initially really interested in sales and real estate, so getting my real estate license was a really easy segue into a career that ended up making a lot of money same thing with making youtube videos. I mean all of my camera equipment that i'm using right now is probably worth under like three thousand dollars at the very most. So in that regard, spending three thousand dollars towards building a youtube career was probably some of the best money ever spent and with a lot of dedication, education and consistency.

Starting a business with a hundred dollars a week could be some really good money spent and listen. If there's one piece of advice you take away from this entire video, and that's it let it be this the sooner you start investing the better. That's because the money you invest today will make you more money and that money will make you more money which will make you more money, which means the sooner you start investing the more money you will make just consider this investing 5 000 a year at 18. Is going to give you about 1.8 million dollars by the time, you're 65 years old? But if you start investing just 10 years later, at 28 years old, with that exact same five thousand dollars a year, you're only going to have 918 000 by 65, which is pretty much half so starting just 10 years earlier, is going to give you double the Amount of money later in life, and when you start to realize that the money you have today is going to be worth double what it will be in 10 years from now.

That better, be a good reason to get you to start investing as soon as you possibly can anyway. With that said, those are the ways that i would recommend investing 100 a week, because that is an amount that could add up to a pretty considerable nest. Egg, later on in life, if you're consistent so ideally go through this list and prioritize them from building up an emergency fund paying down any high interest rate debt, starting a roth ira, contributing to a 401k up to the employer, match starting a business. Investing in yourself and doing anything else mentioned here, all of this really just begins with a hundred dollars a week, and once you get this down, that amount could scale up to whatever amount you decide to invest in as long as, of course, you smash the like Button for the youtube algorithm so with that said, you guys thank you so much for watching.

I really appreciate it as always make sure to destroy the subscribe button and the notification bell also feel free to add me on instagram, i posted pretty much daily. So if you want to be a part of it, there feel free to add me there. As on my second channel, the graham stefan show i post there every single day - i'm not posting here. So if you want to see a brand new video for me every single day, make sure to add yourself to that.

And lastly, if you guys want those three free stocks use the link down below in the description and weeble is now going to be giving you three free stocks when you deposit 100, on the platform with one of the stocks potentially worth all the way up to 1. 600, so if you want those stocks use the link down below, let me know which stocks to get. Thank you so much for watching and until next time.