What's up you guys, it's graham here so throughout the last 10 years i have tried every single, millionaire productivity, optimization life hack, that you could think of from waking up at 5 00 a.m, meditation creating a to-do list goal setting regular exercise the five-minute rule. The list goes on and honestly, i can confidently say that all of that has helped and i made a lot more money as a result. However, i wanted to take a slightly different approach with this video and go over the most important, investing habits that have helped me grow from a few thousand dollars to over 20 million dollars in the span of just over a decade, because i know 100. These techniques will help anybody who follows them.

It's like being able to cut the line of investing experience that some people take decades to learn and you got it all right here neatly packaged in a youtube video and, of course, if you're wondering wow. Graham, how much is this information going to cost me? Surely it can't be cheap? Well, i'm gon na be real with everybody. It's not free! It's going to cost you one like on the video and listen. If you don't like the video, it's not like i'm going to track you down or anything we're going to operate on the honor system here and if you want to take it a step further, it would mean a lot if you subscribed.

If you found this video helpful, so that's it! Thank you guys so much now with that said, let's begin first, we'll start with something easy invest as soon as you possibly can now. I have to say throughout all of the investing advice out there. This one is easily the most impactful in terms of how much wealth you could accumulate throughout a lifetime. I know it might sound super basic to some people, but the reality is most people are not going to follow.

It they'll continue to delay until that upcoming crash. That everyone predicts is going to happen every year now or they think what's the rush to buy in right now, if i could just buy in next week or next month or next year, it's not going to make a difference. Anyway. Now i will say from firsthand experience that the type of person to continually make delays or wait until the perfect time to buy is often the type of person who just never gets around to doing it ever until it's too late see here's the thing when you're Young one of the biggest advantages that you have is really simple: it's just time.

Not only do you have the luxury of writing out any short-term fluctuations in the market, but you also have the huge advantage of what's called compound interest. This means the money you invest is able to grow at a faster and faster rate, because the interest you make makes you even more interest, which makes you even more interest, which makes you even more interest until pretty soon you could buy a mega yacht with a Support yacht so now i kind of feel like morpheus from the matrix, because i'm about to tell you, you have a choice to make. You could either use this knowledge to make you a lot of money or you could ignore it, and only time is going to tell how much that costs. You just consider this: if you invest 100 a month starting at the age of 20, at an 8 return by the time, you're 65 years old, that 100 a month will have turned into a nest egg of almost 540 000.

However, if you think to yourself, i have my entire life to invest. I just want to buy gucci slippers and drink starbucks and you invest that same hundred dollars a month, but you start five years later at the age of 25. Instead by the time you're 65, that amount will have only turned into 361 thousand dollars. That works out to a difference of 177 thousand dollars just by waiting five years to invest a hundred dollars a month.

What's even more eye opening is that during those first five years, you've only invested six thousand dollars so that six thousand dollars invested between 20 and 25 is worth an extra 177 000 later in life, which, let's be real. That's a lot of money just for not buying stupid stuff. Even for me, throughout my entire 20s, i was in overdrive investing mode because i understood the importance of compound interest and i knew that i would never have that good of an investment opportunity ever again. That's why i saved everything i made.

I invested as soon as i could. I maximized my income and now i can pretty much splurge on anything that i want, even though i prefer to splurge on good investments. Second, do not try to time the market. This is probably the simplest, most factual piece of advice you will ever hear when it comes to investing, but it's also the most difficult for people to actually follow.

That's because all of us deep down, want to believe that we have what it takes to outsmart the market and each time it's easy to believe that this time is different. Now don't just take my word for it, but here's the science to back this up since 2006. Had you just bought and held, you would have seen a 10.66 return, but had you been trying to time the market and miss out on the top 10 best trading days over 15 years, your return drops down to 5 and all it takes is to miss out On the top 30 trading days over 15 years and you'll experience a negative 1.18 return, of course people are going to trade regardless. So another study looked at 83 000 investors on etoro, who made more than three trades a year and the results were pretty bad.

This graph shows the average profits from each trader over a 12-month span and at the end of the day, 79 of them lost money. The median return was negative: 36 percent only one in five people who traded stocks were able to just break. Even and statistically, you were nearly also just as likely to lose everything and, generally speaking, research shows that the more trades you make and the more you try to time the market, the lower your overall return becomes. On the other hand, though, performance shows that a 20-year holding period in the stock market has never once produced a negative result, so without overloading you on too many facts and studies, all you need to know is this: the buy and hold investment strategy is not only The safest, but it's also the most profitable for the vast majority of investors, in fact just buying into the markets immediately, regardless of where it's priced has outperformed.

Dollar cost average 71 percent of the time, or in other words, you're 70, more likely to make more money by investing everything right now than spreading your investment across a longer period. Third, only invest in what you understand do i know this is another one. That's like this is common sense. Graham, obviously we shouldn't invest in something we don't know anything about, but yeah.

Apparently it's not common sense, because people do it all the time and they don't listen. They invest in something because someone told them it was a good idea or they see something going up in price and they don't want to miss out because everyone's talking about it on reddit or they blindly follow someone else who appears confident in what they're doing. I'm not saying you have to be a full-fledged expert on the u.s equities market or anything, but you should understand where your money is going, how much your brokerage is charging you what's been the historic return of that investment, how they make their money and how much Volatility, you could realistically expect to handle if you cannot answer those questions and why your money is best suited for that particular investment, then it's probably best you just not invest. Even if this means you miss out on some potential profits.

Just trust me, you'll save a lot more money than you'll miss out on in opportunity costs by randomly following other people or just jumping into things. You don't know anything about, especially in this market, when nearly everything is increased throughout the pandemic. It's so simple to get disillusioned, that investing is easy and get accustomed to consistently making money, but that doesn't always happen. You need to understand that investing is going to be cyclical.

Some investments will lose money for years in a row, and you have to expect that going in by doing so, you'll be that much better off as an investor you'll be less likely to sell at a loss and you'll feel more comfortable holding in your decisions, because You understand the fundamentals and you did the research yourself, although speaking of saving money, if you're buying cryptocurrency it's important to use an exchange, that's reputable easy to use and affordable, all of which our sponsor ftx is here to help you might have heard of them through Their partnerships with tom brady, steph curry and the miami heat stadium, but they're one of the largest and most complete us regulated exchanges in the world, with more than six million users who buy, sell track and trade, both cryptocurrencies and nfts, all in one place with fees That are up to 85 percent lower than top competitors. I really like that. They have no fixed minimum fees on transactions, no ach fees, no withdrawal fees and no fees on their top ethereum and solana collections they're, also the world's most popular cryptocurrency tracking platform, allowing your users to track the price of more than 10 000 different options and the Ftx app is incredibly easy to use and gives you free crypto on every trade over ten dollars when you sign up using the link down below in the description with the code gram on top of that throughout march, they're, giving away over 50 nfts worth over 25 000 for users who enter the promo code march nft and trade over 100 so again feel free to use the link down below in the description with the code graham to get started today. Fourth, never invest money that you need in the short term.

Here's the thing when you invest your money, there's always a chance that the value of that investment is going to go down the moment you buy it. Take my podcast co-host jack for an example. Every time he buys an individual stock. It just goes down the day after it's a fact, i mean hypothetically, if you were able to just short the stock hmm, but that's really the reason why investing should be a long term strategy.

You generally cannot predict where the markets are going to be a few months or even a few years from now and as we've seen, anything can happen, but you can look back historically and see that the chances of coming out ahead profitable over 10 to 20 years Are pretty good so for that reason, investing any money that you'll need in the short term is generally not a good idea, and you could lose a lot of money like what we saw back in 2020 and had you invested your money right before that you needed To have in april, you would be screwed, however, if you invested your money that you knew you didn't need for the next 10 years and you held on a little bit longer. Well now you would be sitting at a 30 profit just for holding on and doing nothing. So when it comes to this here's what i do, if i know i'm gon na - need the money in the next one to two years for a down payment on a house to pay a tax bill or save up for something in particular, i'm not going to Invest it instead, i'm probably gon na throw it on a high-yield savings account and that's it. No sure it probably means i'm gon na miss out on some potential profit, but it also means i'm not gon na lose any money and it guarantees that i'll have everything.

I need by the time i need it without any risk whatsoever. The thing is mentally when i make an investment, it's basically like i'm, locking it away for 20 years and whatever happens between now and then doesn't matter. Fifth, you also have to always invest consistently. For me, investing is like a way of life, it's not something i dabble with here and there and it's not like a hobby you'll get bored with after a few weeks or months.

Investing is really meant to be as consistent of a habit as brushing your teeth. Twice a day going to the gym or smashing a like button for the youtube algorithm. Once you get into the routine of investing consistently, it just tends to stick after a while, and then you do it without even thinking about it and as far as why this needs to be done consistently. Just consider this.

If you decide to invest ten thousand dollars today, and then you do nothing for thirty years at an eight percent return after that time, you'll have a hundred thousand dollars. However, if you instead just invested two hundred dollars a month and did that consistently over that exact same time frame, you would have three hundred and seventeen thousand dollars or three times more money just by investing less up front, but with more consistency. Here's another example. Quite a few people are able to cut back on their weekly spending by a hundred dollars a week.

If you literally do nothing besides investing that hundred dollar weekly savings, preferably in a roth ira. So it's tax-free at an average of an eight percent return. You'll have over 2.3 million dollars saved up in 45 years. That means you would be able to call yourself a tax-free multi-millionaire from a hundred dollar weekly investment that could be your retirement right.

There plus a lamborghini used, of course, preferably a gallardo eger, because the six speeds are going up too much in price. That is what happens when you take saving and investing seriously. The other benefit is that investing consistently protects you against the lost decade scenario, where the stock market trades relatively flat take the years 2000 through 2012. As an example, assuming you just bought in once, you would have made a total of a 4.66 return over 12 years or 32.

If you include the dividends, however, if you consistently bought in month after month, regardless of where the market is trading at your cumulative return, jumps to 24 and with dividends, reinvested, your return is as high as 42. In order to do this and not forget about it, i highly recommend that you just automate your investments as much as possible, just set up automatic withdrawals into a broad index fund without even thinking about it. It's out of sight. It's out of mind, you don't need to be actively involved in it from there on out, but just remember it's there and you're pretty much done.

So it's really from those five habits, along with living, frugally, maximizing my income and saving that i formed my entire investing career. In fact, i can't think of a single investment that i made without considering each of these five points that we talked about here. Like i mentioned, everything here is meant to last you a lifetime. This isn't a video about what works now or how to invest in 2022 for beginners step by step, not click bait.

This is how to invest forever, and you can feel free to save this and come back to it time and time again, anytime. You just want a refresher, you're unsure about something or you want to invest in something. You know nothing about just follow this, stick with the process and no matter what, if you found this helpful, it does help me out a lot if you subscribe or hit the like button. So thank you guys so much for watching also feel free.

To add me on instagram and do not forget to get your free stock down below in the description when you sign up for public using codegram, because that could be worth all the way up to a thousand dollars. It's pretty much like free money. So if you like, free money down below in the description, thank you guys so much for watching and until next time.