What Are Good Ways Of Investing Money?
In today's video, I've answered a question about investing money. What are good ways of investing money? Should you focus on real estate, building a business or getting a degree? Are these options even viable for a normal citizen?
Besides that, I give you some tips on other strategies you could use to increase your profit, such as lowering your expenses and reducing your costs. Interested in earning more money? Wanna know how to invest your money so you can duplicate your income? Watch this video and find out.
John: Hey, what's up, John Sonmez from simpleprogrammer.com. I got this question from Cole about investing. I talk a little bit about investing. This is kind of combined investing and entrepreneurship together here. Cole says, “Hi John, first I want to thank you for making videos. I just recently came across your channel and subscribed.” Subscribe if you haven't, by the way. “And find the information to be very useful. I want to be able to generate passive income so do you have any ideas of what I should do? I'm currently in college. Monthly living expense is around $200 to $400.” I'm assuming per month. Oh yeah, monthly. “I have around 7K in assets. I want to get into real estate and I found a good place but I was told I need 30K at least to invest. Should I take out a loan? Also, I'm considering to go into law school, is that worth the investment? Looking forward to your response, Chris.”
Chris, lots of options here. I can't tell you exactly what to do in this situation since you made it kind of broad here. Should you go to law school? I don't want to tell you not to go to law school if you think that's a good investment. Maybe I can paint a picture for you and give some kind of scenarios and maybe you can decide from there.
Your monthly living expenses are $200 to $400 a month. That's pretty awesome. That's a good place to be. If I were you in that situation I would consider the aspect of creating a business and how easy it would be to create a business that just generates $200 to $400 a month. If you were to create your own business that generates that amount, and that's all you need because you're awesome because you haven't burned yourself with all these debts like a lot of people have where they're like, “I need to get $5000 a month or $10,000 a month of passive income.” I'm like, “Well, that's not going to happen in a year.”
In a year, in 6 months you could build something that's generating $200 to $400 a month. Heck, you can probably do that in one month if you make it service based business, but within 6 months you could have a web based sort of online business and definitely be generating that amount of cash. It's not that hard to do even if you're doing it part-time while going to school. One thing to consider with that is you'd be free, this is the freedom, getting out of the rat race because if your expenses are this and you are generating this then you never have to work for anyone else. You can be your own freeman and start off that way from college.
To me that sounds like a great opportunity. Looking back now, I wish I had done something like that because that would be pretty cool. That's not your only option of course. That's something I would consider. Normally, see, I would consider that to be an investment as well, right? I think one of the best investments that you could possibly make if you're willing to do the work, and I don't always recommend this investment because people aren't always willing to do the work, but building a business is a ridiculously good investment. You're not going to get any kind of better return on investment than building a business especially if it's a sellable business where you're doing it the right way. By the way, a book on building a business the right way, 2 books actually I recommend, The E-Myth Revisited. This one is by Michael Gerber, really good book. You should read this book. This will tell you how to build the right kind of business that's actually a sellable business and then of course Built To Sell. I'm blanking on the author right now, but Built To Sell is also another good one. You read those 2 books you're going to build the right kind of sustainable sellable business that is actually an investment. Since you're looking for investments that's how you want to do it. That's just going to have a multiplier return on your investment of that time because you're going to generate income from it plus then you can sell it.
As far as the real estate one I've done some videos on real estate investment. I think there's probably a play list here of all the ones that I've done. You can check that out. Of course, in my Soft Skills book I have a whole chapter on that as well. Don't just jump into this. Do some research. A good book, The Millionaire Real Estate Investor by I believe Gary Keller the guy that founded Keller-Williams. That's the book I usually recommend in real estate investment because it's pretty honest and it gives a good picture of it. Definitely do the strategy like if you've got my Soft Skills book read the chapter in there and go and learn the market and learn before you just jump in. You don't want to do that and learn the hard way, but I do think it's a good investment, it's just that you've got to be smart about this.
Tackling the law school option, that's another route you could go. Obviously lawyers can make a lot of money, especially if they specialize but don't go into debt so much to do it. That's the only thing I would say is that if you go into debt—I know a lot of lawyers that—well, I know a lot of lawyers that are not making it. They're not doing awesome. You'd think, “Oh, he's a lawyer.” That doesn't mean jack. That's a business that you have to run and it's a service based business and you have to do it and you have to get clients. Just having the Judas doctrine doesn’t mean anything by itself, just passing the bar. I know plenty of lawyer friends of mine that are basically sitting in their office, they don't have clients, they're barely making ends meet and they've got a huge student debt of $70,000 weighing down on them and they hate life, they hate the world, they hate everything. You don't want to become that. I would definitely say if you do go the law route, I think law is a good thing, someday I want to get my law degree so that anyone who pisses me off I can send them letters with my letter head and say piss off and I don't have to worry. But anyway, if you go down that road just make sure you do it smart. Think ahead. Don’t go into debt.
Whatever you want. I'm glad that your expenses are so low. I'm glad that you're thinking about investing. Don't take it lightly. Do the research. Take some action of course but think about this carefully. You can go multiple roads. You can go and do law school and you could start a business on the side, maybe that's the best thing to do. Anyway, you've got a lot of options out there. It's good that you're at this stage in your life and you're thinking about these things. I'm convinced that you'll find the answers because you're thinking about them, keep thinking about them, keep thinking like this way instead of just assuming that life is going to come to you because it's not going to happen, right.
Anyway, great question. If you like this video, if you like this channel, subscribe. I would appreciate it and I'll talk to you next time.