Top 10 Beginner Investing Mistakes (DON'T DO THIS)

SO in this video, I'm going to give you 10 investment mistakes you want to avoid, and before I got to 100k portfolio, I definitely made some of these mistakes and some I learned from other people.

1. WORRY ABOUT THE LATEST APP
I recommend the following:
- Acorns: if you just want to invest on autopilot
- Robinhood if you want to invest instantly
- M1 Finance: for customization and freedom ( I copied my acorns portfolio into it)

Also: Fidelity, Schwab's, and vanguard are great also. But don’t overthink it. I only use Acorns and M1 finance these days.

2. INVESTING YOUR MONEY ALL AT ONES
The Best strategy: Dollar Cost Average:
- Just take that 10k divide it by 52 weeks or longer if you want to
- And invest that money weekly, that way you buy high and also low
- And end up with the average, so you carry the risk

3. Paying 1-2% for someone to do what you can do better
The truth is:
- That 1-2% adds up to 33% of your portfolio value over the years
- Because 2% goes towards inflation, 2% taxes, 2% them, and you get left 1-2%, how is that fair to you
- So no, I rather use an app like acorns or m1 finance, which does all the rebalancing for me automatically and doesn’t cost me % amount.

Tip: imagine when you have $1,000,000 dollars and they take 2% that’s 20k a year.

4. Not knowing how much to invest
- The general rule I give is to invest 20% of your income, every 5 years you’ll invest one full year of your salary and over 25-30 years you’ve done it 5-6times

But a simple way to do it is this:
- If I want a million dollars in 30 years at 8% return
- I will need to invest $661.60 ( if I started with 10k today)
- So put in your number and then start
- And if this is less than 20% of your income then just invest more.

5. Waiting for the market to drop or for it to recover
- If you want to be a passive investor this doesn’t matter
- Because by doing dollar cost average you’ll find during the good times and the bad as long as you keep buying

My only tip is this:
- If you wait till the market drops and it takes 7 years and kept investing during the good and the bad years, I will outperform in the end, it doesn't matter
- One thing I do is, I invest the same amount every week, but when the market falls I invest double, to buy cheaper.

6. Borrowing money to invest
- The most successful investor in the world warren buffer
- Says borrowing money to invest is dangerous and it has send people that are smarter than him straight into the ground

7. Selling to early because you're scared

If you invest the way I invest:
- Index funds and bonds, well-diversified, you understand you are getting a discount, so you buy more
- But if you are buying random companies that might never recover, then that’s scary
- That’s why I do index funds. You are confident because you have decades of data.

8. Not being honest on the type of investor you want to be
- This was me for awhile also and we all go through this
- We see warren and want to pick stocks just like him
- But their also John Bogle ( and index fund investor that helped start the index funds at vanguard)

9. Forgetting about your personal finances first
- Have these 6 things in order

Here :
- Emergency fund: 6 months worth
- Set amount to invest
- Get rid of you debt
- Lower your expenses
- Budget for fun
- Start donating even 10$ a month

10. Taking way to many risks
- Is not about timing the market, it's about time in the market
- Investing is a game for patient people, that take action when everyone is scared
- Limit your risk, their no need for risk losing 50% to gain a few points one year.

* PRO TIP*
INFORMATION IS EVERYTHING