Basics of Investing
ฝัง
- เผยแพร่เมื่อ 18 ธ.ค. 2021
- "every single time you buy an asset - gold, stocks, anything - there's risk involved
i think they're going to go up in general because cash is being devalued but that's no guarantee
be prepared when you put the money in the value fluctuates day to day
- it could go up it could go down
i think you're more secure holding stocks in gold over the long term than cash
but there's no guarantee when you buy things there's risk involved"
SUBSCRIBE, SHARE & START A CONVERSATION
SOCIAL MEDIA:
WEBSITE - www.wealtheconomics.org
TWITTER - @garyseconomics
FACEBOOK - @garyseconomics
INSTAGRAM - @garyseconomics
Performed by Gary Stevenson
GARY'S ECONOMICS
Produced by Simran Mohan
MOHAN MEDIA
What we need is a system which rewards essential work more than rewarding wealth.
Like the Buckaroo, a University currency. It could only be earned by socially beneficial labor, & had to be paid as a tax to get your degree.
Warren Mosler was talking about it.
I wish! I’ve worked in healthcare for 30 years…. I tell you… I need more than a round of applause on a Thursday.
But it is wealth (income on investment) that enables people to be paid.
Define essential work. Delivering groceries? Fuel to petrol stations? Keeping the electricity grid running? Water treatment plants? Roadworks?
@@Inspector-Chisholm Yes. Manual labor jobs and logistics jobs that actively maintain or improve quality of life for ordinary people.
I remember when I just got into crypto back in 2019 but later in 2020 I ended up selling it because I was dumb and I didn't understand it. I studied and learned and now I know how it works. Got back into crypto early in 2023 with 10k and I’m up with 128k in a short period of time .This comment serves as motivation for all those who have invested and continue to invest in cryptocurrencies with so many losses, do not give up, cryptocurrencies can change your life. Do your best to connect with the right people and you will surely see changes.
As a beginner what do I need to do? How can I invest, on which platform? If you know any please share.
As a beginner investor, it’s essential for you to have a mentor to keep you accountable. Myself, I’m guided by Antonio Joel. A widely known crypto consultant
Mind if I ask you to recommend how to reach this particular coach you using their service?
he's mostly on Telegrams, using the user.
@proAntonioDaily THAT IS HIS USER NAME
Its not the money that matters, its the security that comes with it. That's the real wealth. To me anyways. thanks dude!
Hello bud,
I’m a mortgage advisor, just found your videos and they’re superb, keep it up! Two small things on this subject I would add; particularly for lower wealth families or those in more expensive areas - firstly, investing even a small amount (£100-£500 monthly) in stocks and shares ISAs is a great way to initially build tax-free wealth that can compound and grow - that’s how I saved for my first property deposit. Secondly; don’t be too proud to ask family for help or to work together, maybe for your families first property. I think some communities do this much better than others.
I'm self employed and a single parent. I'm also too old to become rich or financially very comfortable. But my son & daughter still have a chance, so I'll pass on this video to them, hoping that they'll get your message. Thank you for your videos xx
Thanks rosanella
Never too old
No, you are never too old as long as you have breath in your body you can always find a way to become financially comfortable.
It might be too late to be rich but it's never too late to learn. You can be financially comfortable with a simple life and the financial knowledge to know you're secure. Never stop learning. It'll help your business.
😊😊 my thoughts exactly.
Thank you for your honesty Gary and for not using your success to prey on vulnerable people like all the other TH-cam money voices out there.
Tough times for sure, it’s a greedy world we live in, help each other best we can 🙏
I really respect your honesty and integrity. More voices like yours need to be heard in this space. Cheers man.
Exactly. This system perpetuates poverty and expands it. My parents gave us money to add to our deposit so we could buy our 1st home 25 years ago. Thankfully it's now paid off. I'm currently putting extra money into super as I'm 55 and divorced so I lost a lot of super. Hopefully I can help my kids in the future. Live within your means and have a budget. If you get money say from an inheritance see a financial advisor so it's invested wisely.
Nice message Carolyn, it is good that you are able to understand and empathise with the situations of younger generations, even though you yourself are able to own property. Please speak to your friends and family and let them know how important it is that we move towards a fairer system - maybe show them our videos!
I had money from a grandparent's will that I used for a deposit 9 years ago.
I am on a distinctly average salary and there is no way in hell I'd have saved enough to match that deposit myself in the 9 years since I used it.
I'm looking at a colleague who earns a few grand more and is saving for a deposit while house prices get further out of reach.
Because I was lucky enough to get that inheritance 9 years ago, I'd estimate my net worth is now four times what it would be compared to if I'd had to rent and save liquid cash, thanks to mortgage repayments and property value growth.
It's patently absurd.
So what happened to your ex, did you have to pay him off his share
@@tomgl6684in 2001 when I lived in Surrey with my parents a 1 bed flat was 8 X my salary. When I moved to France I got a 108% mortgage on a flat that was a third of the price. Housing is only for speculators now especially in the South. I don't know how anybody gets one now.
Bought a few years after the 2008 crisis the smallest property I could reasonably live in (smaller than what I'd rented previously) and predicted interest rates would be kept low by the central bank so as to not send the economy into further into recession. Saved the difference between rent and mortgage payments to act as a safety buffer against missed payments then I overpaid as soon as the fixed rate expired (variable rate had no early repayment penalties) to make the payment up to the amount that rent would have cost me because I knew interest rates would eventually go up. My theory going into a mortgage is that the way interest rate changes screw people over is when interest rates are low more people get mortgages, then interest rates go up and people default and lose their homes and rich people buy them up which I'd hoped to avoid by paying as quickly as possible. I now have a home that saves me money every month because I don't have to pay rent to anyone.
Thank you for your honesty. There are a lot of people playing on people's fear and vulnerability right now. Investing is being advertised (massively right now) as a quick way to get out of a crisis when it isn't. Your videos are giving me a much needed education.
This is a sobering but very necessary message. Thanks Gary.
Real talk Gary, thank you.
This channel is a revelation.
Thanks Gary - Eye opening...
Best video yet! I have watched many of your videos, but this is the best advice for the vast majority of people.
Really helpful insight in what to consider. I was completely clueless, but not not so much. Cheers Gary. Keep up the good work sir.
Your videos have validated my decision to sell up my 3 bed London house and use some of the equity to buy my son a house, with still enough left for me to get a decent property just an hour and a half (a podcast basically) away from London. I'm not rich by any means, I've only worked basic jobs, the last one as a post woman, but was lucky enough to be born in the right decade.
My friends think I'm mad or that I'm spoiling my son, they still believe that their children can make it on their own by working hard like they did.
To help my younger son in the future, I'm going to try my hand at property developing using some left over equity and bridging loans against my paid for house. Failing that, he'll be accounted for in my will or will receive my inheritance to an equivalent sum.
I think you said in another video, that they want us to believe we can use equity to have a lavish retirement, spunk it up the wall basically 😅, and that our kids will somehow be ok, I've seen for myself this is an illusion but your message confirmed this, so from the bottom of my heart thank you! X
I wouldn’t sell the house if I were you. Use the equity to buy another house for yourself and either rent this one out or allow your son to live in it. The turnover costs of buying not worth it
@@endxofxeternity I looked into it, but it didn't quite work out. I could release enough for myself to get a home, but not for my son, he couldn't stay living here as I'd need the full rent to cover mortgage costs, but I get where you're coming from.
I have focussed on never paying interest on anything (I am 77 and have been lucky in that I’ve always been in a reasonably good job and in my early days it was possible to buy an old cottage with no electric etc, for cash). I have waited and never bought anything until I could pay for it. Not possible for everyone but where it is I think people should hold back on spending.
this is completely counter to what he's saying b/c money is devalued over time
Well done. Your formula for financial security works over forty years. Unfortunately, many people want immediate gratification or don’t even try.
Good video. I agree with your central point although I do think it's worth trying educate everyone on personal finance. For many, the idea of owning stocks and shares doesn't even cross their minds, or they think it's something that only 'rich' people can do, so it's something that needs to be demystified. The middle classes often have experience of investing (usually through an ISA at the bare minimum) which they pass onto their children, whereas this isn't knowledge that poorer families always have, which can perpetuate and entrench the cycle of poverty.
This is tremendously helpful! I’m sharing your videos with everyone I know. Thank you !
My new favourite Channel.
I've read quite a lot that say once you hit your first 100k it gets dramatically easier to build wealth. Not something I think I'll ever have to worry about but I'll keep trying nonetheless 😅
charlie munger who said this is dead now. what used to be 100k when he said it, is probably 1M now.
Great content, just found your channel today and gold content. I am 32 and invested in property and ISA funds. It is possible to buy property but have to be focused and not be distracted. I earn decent amount working professionally and a big saver. Aviod quick get rich schemes, in 2017 I made the mistake of buying penny shares and have since learnt my lesson and not only get into lower cost index funds.
Thank you Gary, for being honest with us.
Brilliant channel, truthful and honest, no way to get rich quick if you’re struggling to get by. Buying a home in London has become impossible already and the ripple will spread all over the UK. We’re in Birmingham and there are plenty Londoners on my street now who have had to sell their £1m London homes and buy the same home for less than half the price here. But this in itself is causing prices to boom here, if you can, buy property, it’s going to become unaffordable for everyone soon enough.
The global mafia bankers want to take away private property. Even if you own it they will put up the rates or annual taxes so you can't afford to live there. People need to vote in some decent politicians yet there is no political party in the UK that has any new intelligent ideas to solve these problems, its as if they are all brain dead or just controlled by the deep state.
Love the content Gary. Your points basically echo my 20s and 30s so far and the real situation we are in right now. I do feel that asset ownership isn't completely out of the question for ordinary people. Total lack of education in, for example pound cost average investing in a world index fund every month for 40 years or a lifetime, will eventually safeguard yourself financially in the future. I feel that living the 'inflated lifestyle' trend or image is wrecking the ordinary person's economic future. A big mortgage with 2 electric cars on finance... This is a middle-class rich 'aspiration' lifestyle but I can only see that ending badly...
Your such a good guy
Massive respect......
Gary, you are awesome. Please take a vacation to Italy, Amalfi, and be good to yourself. You deserve the best. Stay strong.
Very balanced Gary, thanks for your advice.
The government has spent years going on about levelling up. Gary hits on the solution in one video, take money from the rich and give it to the poor, job done!
Another very helpful video, G. Keep up the great work :)
Thanks G
Gary, invaluable channel, knowledge & campaigning on wealth tax.
Have you ever thought about creating a more detailed set of of videos teaching how to trade/invest? How to understand & interpret financial news and economic indicators? etc etc?
Thanks brother.
Hey Tej. Yeah there is a lot of demand for this. It's a bit of a tricky balance for me because, whilst I do want to empower people to take more control over their finances, my main message is to try to get through to people how important it is that we work together to change the system. We will definitely be doing more investing videos though, but, like this one, they will mainly be aimed at providing sensible advice for ordinary people, who usually don't have huge amounts to invest.
Thanks for your support and please share the videos!
@@garyseconomics Long may you aim your videos at ordinary people! I would love to make supermarket till workers watch this, or sewerage workers etc. So many people seem to support political ethos in direct opposition to their own needs, and those of the country at large. I dread to resort to cliches but sometimes they are right - the majority of people get the crumbs brushed off rich men's tables (ie reduced income tax) so vote for it.
Reducing income tax in the 1980's meant the tax burden was moved from direct taxes to indirect taxes - from income tax and National Insurance, to indirect taxes - fuel duty, alcohol duty, petrol duty, VAT increases etc. That meant poor people pay more tax, either as individuals via their weekly grocery shop, or as a group. Wealth was moved from the relative poor to the rich.
(You, as an individual paid less income tax, so felt wealthier. You had more disposable income. However, everything you bought cost a little more. Your weekly shop helped pay for the government budget, but that's OK because you are patriotic. However, the very wealthy, also patriotic so that's irrelevant, benefited substantially from your sacrifice, and continue to do so. They pay less income tax. You pay more indirect tax; literally as an individual, or figuratively as a group, as a proportion of your income. The relative poor make up 70 or 80% of society in terms of income?)
I am reminded of a comment a friend at uni made - all revolutions are, and have always been, middle class and not working class (ie Russian, French, Korean, Chinese etc) Someone famous probably said it first. "Jack Smith" - his genuine name - doesn't have a Wikipedia entry that I can find
I heard you on Newscast and found your channel here. Thanks for your video, as an "ordinary person" with some savings it's nice to get some advice on how safeguard it. I like your video style too, very easy to listen to and understand!
Thanks geeza - please share the channel if u can and help us grow the voice
great video
Top vid. Thanks.
No worries boss
Nice one gold finger. 👌
Thanks for you info Gary, I subscribed to you after seeing the damien podcast, amazing stuff it really resonated on me, also just getting into the rat race, is that limehouse? I think this video was recorded in the building where im renting. (Im broke af just got the opportunity to have a nice landlord that I know)
I grew up poor. We never saved or invested. We thought that was for financially smart people. We lived in debt, in order to buy luxuries. We never budgeted. We never lived below our means but above it.
We never understood that by not living in debt, working enough to create surplus and using that surplus to save, invest & grow businesses, we could be much better off.
Especially as young people, if one is prepared to drop one’s standard of living, it’s still possible to generate a surplus in the UK. More difficult than before but still possible.
Gary I LOVE your channel. What you are doing is mega. Total Respect.
But can I, make a suggestion?
Please EDIT your videos. Many much longer than they need be. lot of repetition. Honestly.
Keeping thing tight and snappy, conveys much more competent feel.
Gary for PM. Thats the only way
Hi Greetings from Germany. Germans tend not to buy property but there is a bigger rental market and lots of high quality housing here. By law some German states ensure that 40 per cent of all new houses must be Social Housing and a lot of it is high-end social housing for wealthier Germans. The capitalism system here is a lot more equal and fairer in Germany because they basically have solved the housing crisis. I came from a poor housing Estate near Glasgow but rebuilt a victorian property in North london and made 400k profit.i used that money to emmigrate to Germany and i bought 3 small properties that i generate income to help my two kids and wife have a decent life. Also Germany has free child care and University education so it clearly is a more equal society than the Uk. If you are poor in Germany from birth you have a better chance of life success than in the UK or US.
Gary mate,the stuff you talk about should be taught in schools Geeza.Sth London expat of the 70's and 80' vintage following from Edmonton Canada.Keep up the good work mate.Oh and by the way this Vid us making me feel fxxing home sick :0)
Do i have questions? Oh yes. But first i will listed 10 more times, get all the references out, research them, keep listening and than i may be able to ask some intelligent questions. Thank you for your videos. I learn a lot. Thank you for telling as it is. We need you to counter weight all the financial "advisors" here on YT.
Could to address what it means in action to "but gold"?
Interesting, exactly all these economic advises talk about investing like everyone got a spare 50K ….except this dude. Thanks
It took me 38 years to make enough to stop working. I have told people that speculation for a quick buck is dangerous but investing steady will improve your situation and if you start for your children and grand children they will eventually make a decent pot. But I started from zero in 1982. I no longer work and do adventures and sports.
I completely agree with a wealth tax. And anyone who earns 250 thousand a year in the west is poor. The real money is with the 0.1% who have nothing to do with you and you them, they are invisible to you and pay micro amounts compared to you for health food tax education NHS rent mortgages everything. The real spungers are not on benefits they are the super rich.
What you say aligns with the vision of the world economic forum; “you will own nothing, and be happy”. They’ve predicted this, so you could say what’s happening economically is by design. I’d be interested to hear your take on the WEF and what they’re all about.
This is really interesting, and I have been thinking the same thing for a long, long time. In the UK, I can see it heading the same way as Germany where it is more common for people to rent accommodation rather than buy and the banks tend to own property. Instead of cash you could hold premium bonds.
The problem here in the UK most rental properties are owned by private individuals as investments, and they are pricing people out of the rental market as well. So many people can't afford to buy a property and now a lot of people can't afford the high rents either. Catch 22, they are buggered
@@fredatlas4396 to be 100% fair I don't think (might be wrong) that the landlord is pricing people out of the market, it is the people who can pay the high rents that price other people out. Potentially the barriers to buying a house is the bigger issue - placing those who would normally have the means to buy, but are stuck with renting due to asset price inflation.
@@fredatlas4396 my opinion you should be able to buy property as tenants in common. Like a relative, close friend , trusted and reliable, buy property together. Documented by professional lawyer the ownership. Bit is a kickstart. But you need to know the payments can be met. Just do not sell drugs or something as in some countries the law will take your assets off you, or be a burglar. In NZ that is what can happen. Too many get rich quick . Gangs ways.
Thanks for your videos; the research show that getting money from rich people and give it to poor people increases the inequality in long term. The problem is that some people can get rich and some cannot. I guess we need a new economic system. We cannot keep the current situation and expect a different result. Cheers
Would love an update. I wonder if your advice has changed with increasing interest rates.
What gets me is how dense the people of this country are!! \For 20 years there is no growth in this country, and people are accepting everything and acting like everything is ok . Wake up!!
Otherwise, we are screwed
Watching this now, 2 years after it's posted, and everything's played out exactly like you said it would.
Everyone who has a child should buy at least a gram of precious metal every now and again during the year for the child and continue until they are 18yrs. Gold is currently £58.00 a gram approx and it has increased by £10 per gram since October 2023, thats a great return compared to saving at a bank.
Going forward, its prudent to keep a sizeable amount of cash for life saving operation because NHS waiting lists are about 2 years
thank you Gary! Hello from Brasil. A few years ago i did lost some money, in forex operations. Was something 15k BRL, but was so much. Is important to make some investment, but thinking always a little emergency fund
Brilliant stuff man, please keep it coming. If you're thinking of sorting a Patreon I'd sure as hell support it. Much love from Australia.
Thanks boss! To be honest I have thought about opening a patreon, just simply because I would like to pay my mate who does all the video filming/production/editing. At the moment we are both doing this totally unpaid, which I am fine with, but I would like him to be able to make at least some money from the work that he does. We will think about opening one up at some point. In the meantime, please do share the videos! Thanks!
@@garyseconomics Your platform has brilliant scaling potential so either way, your mate won't be volunteering for long. As someone in their mid-late 20s itching for financial prosperity, your content is so helpful - especially considering that you're still just a young lad who's come up from the streets!
Thanks boss, wouldn't mind it scaling a bit quicker to be honest - still not reaching as many people as I'd like to!!
@@garyseconomics Been dipping in-and-out of your videos since the first one last year Gary, and yeah, pretty surprised you're not up in to the 10s of thousands per video yet, which you should be at least!
A few of suggestions about scaling up (which might be useless, but still).
1st - People like pop culture. It's a good pull in for what could be seen as a boring/complicated subject (economics) to frame it around something people already know & like.
A few EGs on this
- The Big Short: What it Got Right & Wrong and What it Says about Society.
- Hollywood Accounting: How a Billion Dollar Film Actually Made a Loss.
Both of those might be a bit out of date and overly covered now, but stuff like that with the right SEO generally does pull people in. And, this sort of thing obviously isn't what you want to do, but it's the means to the end sort of thing.
2nd - Interviews. Can't comment on who you know or what circles you circle in, in terms of the public figure talkers on economics, but if you could get a high(ish) profile person to agree to a 10 minute conversation around the content of your current videos, that would help. Making it a regular thing more so!
I'm shit at networking myself, but just today Owen Jones (yes, people have strong feeling for & against him!) retweeted your newest video out. Maybe send him a message that you'd be free to talk about economics. Being on the BBC and other radio is one thing, but people our age and younger only engage with the online world more so. They won't be subscribed to these historic establishment outputs so won't hear you to begin with.
3rd - Like you've got a friend doing the video side, see if you can find someone who knows what they are doing on TH-cam to help with the SEO side. Personally don't like the existence of unpaid interns, so asking a friend to spare a couple hours is preferable, as they know you and it's less a job and more just helping out a friend.
I suggest this as the majority of 100,000+ subscribed channels on here have someone onboard either just specialising in this, or it's apart of their job along with something else. Even those in the 1-10 million sub accounts have to hire people in this role as TH-cam, and the internet, is ever evolving.
Had a couple others but this is long enough!
@@arthurbumblefoot Thanks Arthur for all the advice - we have been focusing pretty much solely on making good content and we haven't really put any effort into marketing the channel specifically. I probably should start thinking about that more since we have a lot of good content now and, as you say, I think it deserves a bigger audience. I'm actually away on holiday at the moment (avoiding covid), but I will think about this more and have a good look through your message and suggestions when I'm back - thanks for the help and advice!
the more i watch your videos the more Bitcoin i buy. Ty
small income here. .hustling and backtesting algorithms in order to run some systematic trading that can hopefully beat the market index over the long term. Nice thing about this age is that anybody can learn about options, stocks, systematic trading and experiment if they really want to. A couple decades ago access to the markets and technical software was pretty much only granted to big corps and professionals.
Remember trading is a zero sum game, and your algorithm is up against the big guns' algorithm. On balance you'll likely lose. Buy value and plan to hold for a long time.
Thanks so much for all your work Gary; you are an island of sanity in an ocean of uncertainty. I was wondering what you think is the best way to invest in gold. Cheers mate. Liam
Hi Liam. The best way is probably an ETF in an ISA (presuming you are in the UK), I use the fund SGLN. Be aware that gold has gone up a LOT recently, so its possible that it could fall quite sharply at some point. I still think its a good long term position though.
@@garyseconomics Much appreciated. L
I haven’t heard ANYONE out there who’s got the guts to call out ‘The Emperor’s New Clothes’ the way you have in this video. I’m literally telling everyone I know to watch your videos…
Even saving ten grand takes SO long… and do you want to gamble with all that time and effort?…. And even if you do, you’ll be gambling very well if you get five hundred quid out of it. It’s more basic than GCSE maths!!!! So why is no one shouting this out loud?? The internet is drowning in people trying to sell you schemes to make 5K, 10k a month…. Like you said Gary, it isn’t like the most exciting thing to say… but when you see stuff t like that, the maths doesn’t work. Thanks for your campaign. I’m definitely shouting out your message.
Thanks boss. Yeah, it is always difficult for me when I get questions about investing and how to make money. On the one hand, of course I want to help people. On the other hand, I also know that, especially for the most needy, there is very little that they can do. Ultimately I try to find a balance between providing people what little support I can, whilst also letting them know that the only REAL support we can provide for ordinary people, is to come together to push back politically. Hopefully the channel will grow and we can help to achieve that. Thanks for your support.
Hi Gary, Great video. I heard you this morning on Radio 4 and searched out articles about you and found your TH-cam channel. I'm just coming up to retirement age and realise that the value of my savings will be eroded over the next few years, as inflation starts to bite. What would be the best form of investment for retired people to retain the value of the savings they have? How can I retain the same buying power my money has now over the next 10-15 years?
Unfortunately, there's nothing that *guarantees* the same buying power over that time frame. Gary's advice about buying funds within a stocks and shares ISA is probably your best bet, but certainly not without risk and you could end up with less than you put in. The markets are very volatile at the moment, so you'll need to hold your nerve and not panic if your account goes dramatically into the red, which is what happened to many this year, although there has been something of a rally in the last couple of weeks.
Love your work! Just a quick question: one of your main massages that comes through on almost all your videos is that the rich have been the recipients of huge amounts of money 💰 ( which I don’t doubt) and as you point out - this pushes prices up. Could you pls explain how this mechanism works? Is it because they ( the rich ) just spend and spend and spend - therefore creating inflation? I’m also assuming inflation and price rises are the same thing ? Right ? Is it as simple as that ? Or more complex?
An analogy I might use is : the rich is like a drunk person who recklessly pours petrol on a fire. The petrol being money and in the fire is society. They have limitless amounts of petrol ( money) and whatever happens to society doesn’t matter to them.
Is that an apt analogy? Pls explain further on how the rich getting money drives prices up generally.
Thanks
And you are the best !
Thank you Gary for all your videos, all very interesting. Unless I missed something I was wondering if you've ever made about a video about gold investment ? I'd like to better understand the pros and cons of long term investment in physical gold.
I would like his analysis on gold too. Seems less risky, will preserve wealth but will not make huge profits, more an inflation hedge, so worthwhile.
I got my own little apartment; I started saving 6 years ago and had a decent job and help from parents. I never anticipated covid or any of the other things that have happened, I invested the little bit I could on top of saving loads whilst living at the parents. I don't consider myself smart for doing this, I got lucky with timing, happenstance, and circumstances. Now that I have my little apartment, I'm much more bulletproof. Inflation means my mortgage drops in value because everything will go up (including salary) whilst the loan stays the same. If rates go up, I'm unaffected as well because my rate is fixed. I'm just writing this to recognize I got lucky and am grateful and I hope you will get lucky as well.
I like to hedge my bets, ETF's are also worth exploring.. even in an ISA....
My current plan is to max out my LISA and invest the rest of what I can into a stocks and shares ISA tracking s&p 500. I also want to see how high I can go with my company pension contributions. They will match up to 10%. Whilst still living with parents and paying low rent. I've only just started thinking about my financial future at 27. Which is still plenty of time right?
Another aspect of owning property that many people dont consider is retirement. When retiring your income will likely nosedive and if you have to find money each month for rent that is going to place a huge strain on your pension income and leave you in a difficult position as your earning potential is much lower. Something has to change as all I can see happening in the future is the Governement having to give handouts to pensioners that go straight to private landlords which is exactly what you rightly point out as being a major issue.
I
Simply put if you want to get into investing/trading work your ass off and keep your expenses low and at the same time follow markets and paper trade so you can get a feel for things. By the time you've saved 50K then you can decide to get into it. Forget anything speculative like precious metals, biotech and especially crypto.
Watching this video 2 years after it was made and he was spot on about asset prices.
But there is one thing and one thing only which substantially reduces wealth inequality, and this is the case throughout history and that is citizen army large scale war.. unpleasant but it's a fact.
New subscriber here Gary, loving the content! Is the message still the same today? I’ve been dca’ing into a developed world fund via ISA…. just cautious to lump sum as feels a little like a bubble at the moment!
What about the compounding effects of small scale investing over 15-20 years? If I continue to put my savings into an investment fund and reinvested any profits, would it be worth a good amount of money after a 15-20 year period?
Depends how much you invest. If you started with $0 and wanted to make $1 million in 15 years you would have to invest $3,500 per month every year and get a 7% return
My scenario is, I have a £250k property. Should I sell it and gain interest on that money, like at start of vid. Or do I keep & invest in my property as mentioned mid video? If I sold, I'd have £200k after debts are paid off. Can only the rich live off their interest?
Investing
General:
always keep enough cash!!!
cash gets devalued as assets go up, so buy assets - gold, stocks -> [risk involved (value fluctuates day-to-day: up/down), but better long-term as security] ;
other assets - ETF's, property
economic optimist [growth potential]: stocks & shares | economic pessimist [recession]: gold
stocks & shares ISA [£20,000/yr] , general investment account [more than 20k];
normal gold funds ;
global stock tracker funds [index funds; basket of stocks vs individual stocks]
Providers online:
free trade
hargreaves & landsdown
vanguard
types of account:
ISAs (indpendent savings account) - tax advantages
New subscriber and really appreciate a refreshing alternative mindset. But please could you do a video of what an ideal world would look like to re balance the scales. How do you envisage we fix this situation? As someone not from a privileged background, I nearly hear what you’re trying to say, but where does the ordinary person need to be or aiming for?
It's fine investing in stocks, property etc. but remember you can invest in yourself and get a return too. Invest is new skills/eduction or your own business/ventures for maybe greater returns.
Love your work mate. Although BTC is a pretty safe bet these days.
Gary, ultimately you're advice is do what the rich do buy property stocks & gold. That's pretty obvious though. Nigel Farage would say the same.
Live within your means. Learn to budget. Save whatever you can. Reinvest the interest. Keep doing this until you reach retirement. Don't get angry that others have more than you. Be grateful for what you have. Be positive and believe in a better day. If you keep at it, it will come.
just found your channel, love your videos.
one major critique:
If you think bitcoin is a get rich quick scheme, or if you think bitcoin isn't fundamentally different from every other crypto coin out there, then you don't understand bitcoin. Bitcoin seems to be a major blind spot for you. I don't want to tell you to immediately jump on the bitcoin train, but you absolutely should put away any preconceived notions you have on it and start deep diving into learning about it.
cheers!
Changing your financial situation is a grind a real multi decade grind (For the herd). Also along the way there will be many debts to pay off
You need to get those early years sorted from like 18 to 30 saving like there is no tomorrow. Giving up on a lot of stuff so that later you will enjoy the compound interest that comes.
First ''setback'' will be debt. Your loans from Uni and then your biggest debts a house and later if you get married the extra cost of kids(They will be close to the amount you spend on your house )
If you are totally wired into the system you will take on more debt as you consume. If you can resist then you can keep the early years money and it will accumulate through compound interest and later on in life when you have finished paying off your mortgage you can then downsize and put that money to your miserable state pension and the early years money that will now be worth 10 times what you saved. If you mess it up,you will have just your house and have to end up moving to another country with the money from the sale of your house and cheaper housing and standard of living abroad
Thats the grind welcome to your successful life.
I find the title of this video a bit misleading and the contents a tad discouraging. I personally haven't gone anywhere near property because it scares me. However, if I was in my 20s and watching a video like this, I'd rather be hearing tips such as putting the money I was wasting back then in a stocks & shares ISA with compound interest. If anyone can afford to put a few pennies or £1 a day into one of those, because it reinvests in itself, in the long run when you reach retirement you'll have a very nice return into retirement, especially if it's one that invests in the stock exchange's top 10 companies. It might make the odd loss but generally it'd make about 9% return per year, and because it reinvests in itself, the profit it generates increases on a sharper and sharper curve over time. Matched betting is another sure way to make a profit. Not everyone can afford to do these things, but for someone working class like me, I'd be sitting on a pile of money by now if I knew these things about 30 years back. I'd at least be way better off. I've learned too late in life to make my money work for me.
Gary where is the best place to buy gold from? Thanks for the journey
In my opinion the easiest and safest way is to just buy a fund like "SGLN" in an ISA (presuming you are in the UK). But remember that nothing is guaranteed, even a gold fund will go up and down over time and you could end up losing money. Good luck!
Taxing land values would break the upward cycle/Ponzi. It would reduce the spiv investment into houses people can't use or afford.
Asset FOMO creates these awful outcomes. People are forced into buying houses as it's an appreciating asset (only way to 'make money' for ordinary folk who can still afford it).
What are your thoughts on leasehold? Flats are more accessible than houses but are they still a good investment?
If your lease is your expected long-lifetime ×10 then I'd treat it like freehold (subject to annual costs...)
Gary, you are the man! Saw you on the BBC show - ' The decade the rich won'. Your story and cause stuck with me and I googled you and found your channel. I really applaud what you are doing, we live in such an unfair society - designed, constructed and manipulated by the super wealthy. I am in a more fortunate position that lots of people at the moment and have a little saved for a rainy day but I am worried about it losing lots of value in a savings account. I am looking into a stocks and shares ISA and I have never thought about buying gold - where can you do this? Also how can we get the message out there and make the system fairer?
Where did my comment go
@@fredatlas4396 Hi Fred, I got your comment emailed to me, thanks for that :) I don't know why it was deleted though....
You can make a start by e-mailing your MP and sharing the videos asking friends and family to do the same ..
Can you clarify if you in favour of buy to let properties? My concern is that they create demand for houses which push up house prices, making them more unaffordable for the less wealthy. I have several hundred thousand pounds in stocks and shares, but none in property for this reason.
Premium Bonds are an excellent and safe way to hold your cash if you don't like risk.
Pays monthly at an average rate higher than interest, your money will never go down, and you can cash out anytime.
Could you explain why gold has any worth or why it not just physical Bitcoin with a monetary backup?
You don't get into property with 50-100k though....the only assets you can really buy in that range are stocks, bitcoin, gold, etc, and continue to add to them until they snowball into something greater in the future. I agree if you are living payday to payday and have £20 to spare at the end of the month then investing isn't the way for you, but property isn't the way to go until you have decent 6 figures either (Inheritance aside).
Something I surprisingly only recently realized about 'tech investing" is that everything that made people rich over the last 200 years was always "tech." Railroads were tech. Oil was tech. Autos were tech. Passenger aircraft were tech.
You should invest in tech.
The south sea bubble was also tech!
I used to buy physical gold and silver, but once you reach a certain point, the insurance starts to go up quite a bit.
I work for a large pensions company, and the share schemes are a great investment. A no-brainer, some might say. For me, it's not timing the market, it's about time in the market. Zoom out, think long term. If you can afford to squirrel away a hundred or so a month into stocks, then you should do well in the long term.
Put more money into your pension, too. My mother told me that when I was in my mid twenties. The state pension won't exist in fifteen to twenty years.
Wonder if you would say the same thing about property today? From what I'm hearing, hyperinflation may lead to much lowered home prices. Love to have your advice on this.
If we were to have a hyperinflation (which is unlikely, but anything's possible) it would definitely lead to HIGHER house prices
@@garyseconomics Thank you so much, grateful for your work!🙌
@@garyseconomics Also, just watched your new vid on housing, inflation, and interest rates... thank you for that. Very insightful
What kind of returns on average do you get with gold?
Investing is like watching paint dry, invest in Global Equity fund Index and just watch it once a year, don’t change it, no matter what happens, the markets they invest in are efficient. Think long term. Always have an emergency cash fund of 6 mths of your household outgoings.
what about a vid suggesting a reading list? I would like to educate myself more
I love the real word advice for people with no wealth being to just support taxing the rich more. However if you are in a position where you can save 100/200 quid a month and you put it in reasonably safe dividend stocks after compounding for 30 years you at least dont have to solely rely on the rather top-heavy pyramid scheme which is pensions...
200 a month 7% compounding interest, 30 years = over 200k...
can you please give an example of 'reasonably safe dividend stock'? I can save a few hundred, but pretty clueless about what to do with it. thanks.
Personally, I think people need to start pooling their money together and buying property and the like. It wont make anybody super rich but it means wealth can be managed more responsibly/collectively. So if say 100 people invested 2000 to buy a 200,000 house. And say they charged an affordable rent of like £400 a month. They might only make a couple of quid a month and would probably never recoup their losses (unless they sold their share) but they could pass the share onto their children (or whomever in their will). This would keep rents low and keep valuable property out of the hands of rich investors. This is all something national governments should be doing if they weren't bought and sold by the rich. It is faintly ridiculous how easy it is for rich people from all over the world to buy houses in Britain.
Hi Gary. Love your content. If governments start taxing the rich do you have any faith that they will use it wisely?
The super rich aren't using it wisely. They're spunking it on homes they don't occupy, yachts they only use 4 times a year, gold they never look at.
And all that behaviour isn't neutral. It actively hurts those without assets.
'Wisely' is subjective, but i'm guessing in this case we all mean using money to close the inequality gap and make sure fundamental needs are met.
Parties against it are normally predominantly funded by wealthy donors who are looking to preserve/increase their wealth. Their policies would reflect this.
Parties proposing to tax the rich would most likely be running on progressive social justice platforms aiming to decrease inequality, so you would hope & expect they would use it wisely.
Both the rich and governments sometimes waste resources. I don`t mind paying taxes. I`m not rich, but the less tax I pay the more I`d be willing to give to charity. I think the super rich could do both!
Hi Sami, this is a good question.
For starters, I think there are some areas where increased government spending could clearly be benificial. Increased funding of education and the NHS would surely be a good thing, and it seems to me that better funding of social activities and youth clubs for young people would surely be a good thing to have.
Even without this, taxing the rich more in order to reduce taxes on ordinary working people's wages would also definitely be a good thing both for the economy and the society.
So there is no doubt that higher taxes on the rich COULD be beneficial on society. Even if the money were simply destroyed, taking it away from the richest would reduce asset prices, inequality and inflation, thus basically reversing the most damaging long term economic effects of COVID.
So, ultimately I think that, at this point, almost ANY taxation of the rich would be economically and societally beneficial, although of course there are better and worse ways of doing it.
It may be that your question may be about direct government theft/corruption, of which it does appear there has been some particularly during COVID (although I am not an expert on this). If this is happening, of course it's an enormous problem, but it does not take away from the central economic problem of rapidly growing wealth inequality in society.
Gary
@@garyseconomics "even if the money were destroyed" - that's a powerful statement that really hits the heart of the problem. Effectively (preaching to the converted, sorry) you're saying that short of giving it back to the rich there isn't a "bad" way of spending it - anything would be better for equality than where it is today... that's an enlightening thought.