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hello there and welcome to another video any questions leave them in the comments and if you want to know more about investing in the stock market check out the rest of my channel and subscribe so not enough people are investing their money there's they're making money they're spending money maybe they're saving a little bit of money but they're not putting away anything for investments and it's one of the biggest mistakes you can make in your life period not just financially guys you need to put your money to work it's the only way to build up wealth over time and I like to call it paycheck to investments where the money comes to you in form of income and it ends up as additional income for yourself so eventually you will have income coming from your job and you will have income from this side from your investments and it will all sort of be a good circle and with the accumulative growth of your investments this side might end up giving you more income than this side and that's when you can quit your day job and sort of do whatever you want to do so now we all make money we all have a job most of us anyways so let's say you make $3,000 a month this is this is just a number I chose not to go with like a round number like 10,000 because it's more than most of us make and it's a little bit hard to get your head around it so this is a pretty realistic number for most countries so let's say you start off with three thousand dollars every month after taxes it's it's a lot but let's say now first of all we'll have bills and we'll have to spend money to live have a certain quality of life so let's say you spend a little over 50% on bilson spending so let's say 1,600 bucks it's a quite it's a quite low living expense and not a lot of spending but if you really want build a strong portfolio of investment you need to save as much money as possible so 1600 bucks for you know rents gas food clothes etc and travel then maybe you're able to put 200 bucks in savings accounts now this is just money for a rainy day this is not you know or maybe you're saving up for something you have to buy like a car a new washing machine a new PC or a phone or something that will enable you to fully you know live your life so at least put a little bit aside in a savings account for a rainy day or if you're saving up for something but the majority of the money outside of bills should go into your broker's account your broker is where you actually buy stocks now if you're using your bank as a broke as many people do you don't have to put it into a broker's account you can just have a separate account in your bank where you put the money you're thinking of investing or you can put it straight into stocks you can skip this step so if you're a really good saver you might be able to put 1200 bucks into your broker's account but at least put a thousand dollars if you're making 3,000 you should be able to invest $1,000 a month now it might sound ridiculous for you to save this amounts of money and to spend so little but think about how much money you spend on things you don't need things you definitely don't need just things you want I do myself but I try to restrict it to the most necessary things and then treat myself a little bit time from time so from your but broker's account what I would do is to put most of the money straight into an index fund it could be an index fund or a Vanguard ETF you know it could be an SMP 500 fun or a total stock market the US fund attack index whatever you can either go with a mutual fund through your broker or you could go with an ETF from let's say Vanguard so just put the money straight in don't save up a lot and then invests thousands of dollars just invest straight away every month don't worry about timing the market don't worry about expenses just put it into the index fund the rest so the the four hundred dollars which are left after you put eight hundred dollars into an index fund should go in some sort of savings accounts so either keep it in your broker's account or have a separate bank account while you save up four hundred dollars a month and when you have a couple of thousand dollars like let's say two thousand dollars you invest it in individual stocks so companies which you think are gonna beat the market outperform the market so ideally this pose should do better than this that's basically what you're trying to do and the reason why I wouldn't invest immediately is you should only invest this money when you think there's an opportunity to outperform the general market so if you don't have any great companies or great timing strategies you should just keep that money in an account ready to be invested so you don't have to take from savings all the bills okay now you notice these small red sees that stands for Commission or expense so it does cost something to invest money and those costs occur in this paths and in this part every time you buy or sell a stock you pay a one-time fee it's a transactional fee it's usually not more than seven or eight dollars maybe ten if you have an expensive broker and with index funds and ETFs you pay an annual management fee to the company managing the fund so if you want to get have as little expenses as possible you go with an ETF but if you want to invest straight through your broker in the mutual funds they provide let's say you're using Vanguard as your broker you can buy a Vanguard mutual funds but ETF in the long run will usually outperform mutual funds in terms of individual stocks you only pay a one-time fee then nothing else apart from if you sell now from these investments you might get something called a dividend so what I would do with it dividend is probably put it back into my broker's account and let it sit there till I have enough to buy you know a substantial amount of stocks some companies does offer a read imminently investment plan aka drip which means the dividend goes straight back in to the stock without any fees you don't have to worry about it it just so puts the dividend into the same investment but most companies just gives you the investment they dividend to your broker's accounts all to a bank account and it's usually very little at a time you know five bucks here ten bucks there twenty bucks there so save that up in the accounts and the next time you invest you can just add the dividend on top of the twelve hundred dollars this way you you save money on expensive because if you just invest a little bit at a time the expenses you know the transactional fees are going to make up such a big part of your amount so this is how I would do you know the goal is to have income from your job income from your stocks income from your dividends maybe even interest tonio savings you know you can start a business with this money you can invest and buy assets like real estate and in the end you know this you know ideally will give you freedom and set you free you can quit your day job and do whatever you want to do with all of this passive and active income coming towards you so that's how I think you should spend your paycheck let me know how you guys do it or if there's any better way of structuring your investing strategy as always check out the rest of the channel or invest or visit investing for Aldo let's see in the next video you