Investing Money Red Flags 🚩 (don't do this)

Read Time: 3 minutes

👋 Hey guys - Noah here,

🚩 My Investing Red Flags

• Investing shouldn’t seem so complicated.

• Often we feel it’s something only rich people can get into.

• But the truth is it’s not that hard. Just don’t fall into these traps…

🚩 They wait until they are older to invest

I want to ask you a question:

Would you rather have $1M today or $0.01 that doubles every day for 30 days?

@noahxboa

$1M Now… or A Penny That Doubles Every Day For 30 Days… 🤔💸 #money #publicquestions #riddle #finance

I asked this question a year ago in a TikTok video and most people replied, saying they’d take the $1M.

But the truth is, if you wait 30 days… due to compound interest, that $0.01 would be worth $5.3M 🤑

The magic word here is compound interest.

Let’s say you’re 18. You start putting $100/month into the S&P 500. Overall you get an annual average return of 9%…

by 28 you’d have: $19K
by 38 you’d have: $61K
by 48 you’d have: $184K
by 58 you’d have: $409K
by 68 you’d have: $985K

Notice how in the last ten years, that money practically doubled?

That’s the power of time + compounding returns! 📈

You might be young. But if you can find just $100 to put away per month into an index fund like the S&P 500. Damn… you WILL thank yourself later!

Plus: if you open a tax-efficient investing account (in the UK that’s a Stocks and Shares ISA) you won’t have to pay a penny of in tax to the government on your returns.

🚩 They constantly monitor their investments

Imagine it’s 2020. You turn on the news to see that Bitcoin has just hit its new all-time high. You suddenly remember…

“Hey, I think I bought some of that back in college!?”

You find the login, check your crypto wallet…

Boom.

You’ve suddenly realised this old investment you basically forgot about, has now made you a millionaire. 😳

Well… this was actually the case with most of the Bitcoin millionaires.

They bought some ages ago, forgot about it, then the next thing they know, they’ve realised they made the best investment ever.

The people who were constantly checking the value of their investments every day. The people who tried to “time the market”. They were the ones who more than likely had already sold their investments - they overthought it.

In the same way, you want to treat your investments like something you just… forget about

• Don’t try to time the market, buying and selling depending on the news.

• Don’t look at your investments every day, overthinking if when you bought was right.

• Don’t try to wait for the “right time” to invest.

Instead, the best thing to do is invest and leave it.

Let time do its magic. Like we saw before, time does the work for you.

Time will always beat your judgement.

🚩 They Don’t Auto Invest

This is the ultimate hack.

If you tell yourself -

“Oh - this month I will remember to invest”

You won’t.

Life will get in the way. Stuff will happen.

So treat investing like paying for your monthly Netflix subscription. Make it automatic.

With Trading 212, I was able to automatically set up auto investment every month from my bank account. Just like a direct debit.

If you can do this, investing becomes REALLY EASY. It just sorts itself out.

If there is any part of my life I can automate, I do it - including investing!

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Apprenticeship Schemes ❇️

• I have recently seen several people RAVING on TikTok about how underrated getting an apprenticeship is vs uni.

• This video about being a British Gas engineer apprentice popped up on my FYP and I think it’s brilliant

• Check it out here to see the benefits of being an apprentice

not sponsored, just think is cool!

Important Links 🔗

1. If you haven’t yet, join the “Teaching What School Doesn’t” Skool community. It’s free and has tons of extra value on managing, investing and making money. 💸

2. LOADS of you have been using my free Budget Calculator.

3. I reply to every email, so send any questions through! I’d love to help you.

See you next time!

Disclaimer: None of the above is financial advice. This newsletter is strictly education and should not be taken as investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and always do your own research.