Lets discuss how to invest $500 per month, and the best places you can invest your money to build wealth - enjoy! Add me on Instagram: GPStephan
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My ENTIRE Camera and Recording Equipment:
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FIRST: Build up a 3-6 month emergency fund.
Having a 3-6 month emergency fund means you won’t have to rely on credit cards to pay your way through an event, you won’t have to sell stocks or other investments to pay for it, and you won’t have to take on high interest debt anytime something happens.
SECOND: Roth IRA
This is a tax advantaged retirement account that lets you contribute post tax money…meaning taxes have already been taking out of what you earned…and by the time you’re 59.5, all the PROFIT in that account can be accessed completely tax free.
THIRD: Traditional 401k
This is an account that you invest PRE-TAX money into, and then you’re taxed when you begin withdrawing the money after the age of 59.5. For example, if you invest $500 per month into a 401K, you’ll be taxed as though you make $500 per month LESS on your paycheck. That saves you money upfront, allowing you to invest MORE money than you’d have left over AFTER paying taxes.
From my perspective, the 401k really only makes sense in a few scenarios:
The first is when your employer offers what’s called a 401K match…this is when they will match your contribution, dollar-for-dollar, up to a certain amount. Essentially, this means you’re doubling your money immediately with zero risk whatsoever.
Secondly, a 401k makes sense if you’re in a HIGH tax bracket now…and expect to retire on much less, in a LOWER tax bracket. The variable here is if you end up making more money in retirement, then you’ll pay more in taxes LATER than you would have just paid now. And, if the tax rates go UP in retirement…then you might also pay more.
FOURTH: Paying down any high interest rate debt you have.
If you invest your money, on average, you’d likely expect about a 6-12% return in a broad index fund…and to do that, you’re taking on some risk that there will be years where you LOSE money. On the other hand, paying down debt is like getting a guaranteed return on your money at whatever interest rate you’re paying.
So paying off a 15% interest credit card balance is like getting an immediate, guaranteed 15% return on your money. Same applies to ANY outstanding loan you have. My basic rule of thumb is this: If you’re paying above a 4.5% interest rate on your money, it’s probably best just to pay it off, because you’re getting ABOUT what an investment would generate after taxes. So there’s no downside.
FIFTH: Invest in yourself
When we look at the ROI of investing $500 per month, in the very beginning, it’s not much. Even at a 10% return within a year, we’re talking about a few hundred dollars. The BEST ROI, however, comes from none other than yourself. YOU have the ability to make a few hundred dollars IN A DAY with the proper education or certification, and especially when your young, making more money can set you up on a completely new trajectory in terms of building wealth.
SIXTH: A taxable account
By doing this, you can invest $500 per month into individual stocks or index funds you find interesting…you can basically just invest your money normally, without any retirement benefits later on. BUT, by doing this, you’d have access to ALL of your money, anytime you need it, without paying an penalties for cashing out before the age of 59.5
SEVENTH: Start a business
That might be enough to buy some basic equipment to get going, it might be enough to get a website built and order inventory, it might be enough to start up a small agency that you can run remotely, it could be enough to even just buy some landscaping equipment and start mowing lawns. The possibilities are basically limitless.
For business or one-on-one real estate investing/real estate agent consulting inquiries, you can reach me at GrahamStephanBusiness @gmail.com
The YouTube Creator Academy:
Learn EXACTLY how to get your first 1000 subscribers on YouTube, rank videos on the front page of searches, grow your following, and turn that into another income source: https://bit.ly/2STxofv $100 OFF WITH CODE 100OFF
Get 2 Free Stocks on WeBull when you deposit $100 (Valued up to $1000): https://act.webull.com/k/Vowbik9Tm5he/main
Merch: http://www.GrahamStephanStore.com/
My ENTIRE Camera and Recording Equipment:
https://www.amazon.com/shop/grahamstephan?listId=2TNWZ7RP1P1EB
FIRST: Build up a 3-6 month emergency fund.
Having a 3-6 month emergency fund means you won’t have to rely on credit cards to pay your way through an event, you won’t have to sell stocks or other investments to pay for it, and you won’t have to take on high interest debt anytime something happens.
SECOND: Roth IRA
This is a tax advantaged retirement account that lets you contribute post tax money…meaning taxes have already been taking out of what you earned…and by the time you’re 59.5, all the PROFIT in that account can be accessed completely tax free.
THIRD: Traditional 401k
This is an account that you invest PRE-TAX money into, and then you’re taxed when you begin withdrawing the money after the age of 59.5. For example, if you invest $500 per month into a 401K, you’ll be taxed as though you make $500 per month LESS on your paycheck. That saves you money upfront, allowing you to invest MORE money than you’d have left over AFTER paying taxes.
From my perspective, the 401k really only makes sense in a few scenarios:
The first is when your employer offers what’s called a 401K match…this is when they will match your contribution, dollar-for-dollar, up to a certain amount. Essentially, this means you’re doubling your money immediately with zero risk whatsoever.
Secondly, a 401k makes sense if you’re in a HIGH tax bracket now…and expect to retire on much less, in a LOWER tax bracket. The variable here is if you end up making more money in retirement, then you’ll pay more in taxes LATER than you would have just paid now. And, if the tax rates go UP in retirement…then you might also pay more.
FOURTH: Paying down any high interest rate debt you have.
If you invest your money, on average, you’d likely expect about a 6-12% return in a broad index fund…and to do that, you’re taking on some risk that there will be years where you LOSE money. On the other hand, paying down debt is like getting a guaranteed return on your money at whatever interest rate you’re paying.
So paying off a 15% interest credit card balance is like getting an immediate, guaranteed 15% return on your money. Same applies to ANY outstanding loan you have. My basic rule of thumb is this: If you’re paying above a 4.5% interest rate on your money, it’s probably best just to pay it off, because you’re getting ABOUT what an investment would generate after taxes. So there’s no downside.
FIFTH: Invest in yourself
When we look at the ROI of investing $500 per month, in the very beginning, it’s not much. Even at a 10% return within a year, we’re talking about a few hundred dollars. The BEST ROI, however, comes from none other than yourself. YOU have the ability to make a few hundred dollars IN A DAY with the proper education or certification, and especially when your young, making more money can set you up on a completely new trajectory in terms of building wealth.
SIXTH: A taxable account
By doing this, you can invest $500 per month into individual stocks or index funds you find interesting…you can basically just invest your money normally, without any retirement benefits later on. BUT, by doing this, you’d have access to ALL of your money, anytime you need it, without paying an penalties for cashing out before the age of 59.5
SEVENTH: Start a business
That might be enough to buy some basic equipment to get going, it might be enough to get a website built and order inventory, it might be enough to start up a small agency that you can run remotely, it could be enough to even just buy some landscaping equipment and start mowing lawns. The possibilities are basically limitless.
For business or one-on-one real estate investing/real estate agent consulting inquiries, you can reach me at GrahamStephanBusiness @gmail.com
To obtain financial freedom, one needs to be a business owner, an investor or both generating passive income particularly on a monthly basis… Thank to Mrs Louise O'Brien for helping me achieve this
Literally anyone can do this. Plasma Donations will compensate you for your time and with just 2-4 hrs a week in most locations you can easily make an extra $400-500/week while at the same time providing life saving base plasma that can be made into a vast array of medications to people that need it.
Literally anyone can do this? More like everyone should do this!
+1 for LCOE advice thanks Graham.
This is one of your best videos!
Can we open up more than one Roth IRA account?
Appreciate the video, I smashed the like 👍 button, but subscribing isn't free.
Is this video still considered up to date?
Hello Graham and everyone that could help. When people say to invest what do they mean by this. To buy shares ETF or index funds which some you need to have a minimum. Can someone please provide a link to how to so if you have $500 every month. Ex. If a deposit this money into M1 Finance what should I invest it in, Mutual Funds, Stocks, Bonds, ETF, etc. Please help, Graham anyone.
I’ve got a savings account that has 3.46% interest rate 👌 (uk)
that sounds great except you're not considering inflation in the formula
There are a lot of strategies to make tongue-wetting profit that the average joes don't know. . Personally, the financial-market for me seems the only way forward with my long time horizon (accrued roughly $457k in gains since Mid 2021 ) but if you don’t have that fortune of time it’s a tough market out there almost nowhere feels safe!
Great video Graham, can get more of these or starting from $0 thanks! 🔥👍
Take a shot every time he says "invest".
On second thought, better make it a sip!
If I can afford to max out my 401k Pre-Tax Contributions after the company match to reduce my taxable income & still max my Roth IRA annually should I? Or stop after the company match, max Roth IRA and invest the rest?
awesome dude what if i wanna be a millionaire before im in aa wheel hair or when the money usefull i aint gonna be doing much at 60 u feel me
Commenting for the algorithm
Invest in what
What do you think about Fidelity for investing?
I cant find banks that give two percent anymore, does anyone know any?
Trading a coin is the best way to achieve a goal in investment,,the first time in trading with Mrs ANTONIO MORRIS her percentage is profitable and ligiet 👏👏👏
What I absolutely despise about videos like this is the ENTIRE video is based on the assumption a person in their 20s can save $500 month. The vast majority of people cannot possibly swing 500 per month without ever having to touch it for 40 years. Let alone be able to save it at all.
Most people in their 20s have to live with their parents until they are 25 or even older these days. And with recent economic turns and massive inflation, this will only get worse for young people.
These are tickle your ears videos but completely impractical.
I make that in a week
why is he yelling
I’ve also benefited from this program
I’m so grateful
I’m 16 and have a mentor, he’s getting me into this and thinks I’m the the one that’s gonna be a million air as he is
So you would spend the money when you are old, spend the money.
🐘🐘🐘
I hope there are some teens watching this video to start investing ASAP!
Interesting thing is Your words (smash that button) comes out of nowhere…..
Ok I invest 500 a month for 40 years. 1.3 million dollars. What will 1.3 million dollars in 40 years be worth in todays money. According to a typical inflation calculator it will be worth $340,000 in todays money. Inflation kills most savings and investments leaving the saver with little to show for in the form of purchasing power after all those years of saving. Real Estate seems to be the best investment, especially if it nets you income through rent. You gain equity and someone else pays the bills.