• Jerremy Alexander Newsome

I saved up some money, how do I invest it?

I saved up some money, how do I invest it?

First off, congratulations for saving up some money!!! 70% of USA homeowners are one paycheck away from foreclosure because they do not have any savings. But now, what should you do with the money? We need to discuss a few things to make the best decision for you. How soon do you need the money? What is your financial status? How good are you at investing?

How soon do you need the money? I have a friend that saved up $20k and said 'I just wanna buy something and see what happens” This friend had no debt except for his house, a fully funded retirement fund and if he lost it all, he would not be financially devastated. Another friend saved up $10k for a down payment on a house she intended to buy in the next 12 months, and if she lost even a small part of the money, it would be devastating for her family. If you need the money very soon, take a super low risk route like parking it in a money market. If you do not have a purpose for the money for a long time, you can take a higher risk with potentially higher reward route.

I have one investment strategy that is 100% guaranteed to work – but you won't like it… Brad's 100% guaranteed to work every single time is called 'Pay off debt”. I know – you were hoping for something fun and exciting that would turn $100 into $1,000,000 overnight. but paying off debt is 100% guaranteed to improve your financial status. If you have $10k in debt at 5% interest, you will owe $10,500 next year if you don't do anything. If you pay off the debt, you will have saved yourself $500 which is a 5% return GUARANTEED aka NO RISK aka SUPER AWESOME!!! Plus you will also eliminate the monthly fees which you can put towards something fun and exciting (like skydiving, a trip to the zoo, a nice dinner or an investment idea). I believe you should pay off all debt except the house before investing. Check out the Financial Fundamentals videos

to see how to pay off debt the fastest, how to build an emergency fund and more.

The final consideration is how good at investing are you? If you do not have a proven track record of successful investing, then you should seek a competent financial advisor

AND get a FREE education from Real Life Trading on how to become a successful investor. Once you have learned how to trade and have a proven track record of success, then you can start pulling the money back from the advisor to trade using your proven strategies.  Feel free to email me at Brad@RealLifeTrading.com
to get contact information for the financial advisors that I use.

Now, let's discuss how you can get a complete education in learning how to trade all for free… What kind of trader are you going to be? If the only time you have to trade is after the stock market has closed, you probably are a swing trader. Swing traders should start their education with these free classes

. If you have a flexible work schedule, are a stay at home parent or know you want to be a day trader, then you should study the aforementioned swing trading videos
and then look at the free day trading videos
. Don't believe a stay at home parent can be a day trader? Check out this article
and also this interview of Laytoya Smith
, and amazingly successful day trader, stay at home Mom and just all around awesome person. Both day traders and swing traders should 1) watch the videos, 2) create a trading plan (the how to is in video 4 of the series), then 3) boost the trading plan with rules for yourself on when to enter, where to put your protective stop, where to place your target and when to adjust your protective stop. 4) Follow 7 steps to build your own trading strategy
and learn how to practice with old data and then with live data and fake money before placing your first trade with real money.

Have any questions? Feel free to email me at Brad@RealLifeTrading.com

and as always…

Trade on Logic, Not on Hope

Brad Reed