You know an average millionaire has around seven sources of income in order to achieve wealth.
Having multiple streams of income is important but building multiple income streams is not an easy job.
That's because most of your time is spent on maintaining your first stream of income.
That's your job or your business.
And it's even harder when you have to work long hours and get tired when you get home.
It's not an excuse but we're all human beings.
We have our own limits and incapacities and we cannot ignore the fact that our time is limited as well.
That's why I decided to make this video to show you the best and easiest way to grow your wealth safely
and effortlessly.
So how can you easily create four streams of passive income.
The answer to this question is simple.
You just need to invest your money in four different types of paper assets.
And if you do everything right those investments will be consistently putting the money back into your
pocket.
You can increase your income without any extra effort and you can easily make a lot of money while you
sleep.
Interesting right.
So what are those paper assets.
Now I'll dive into four different types of paper assets that I've been using to multiply my money and
create multiple streams of passive income.
They are ETF or exchange traded funds value stocks dividend paying stocks and Rietz or real estate investment
trusts in order to create four distinct sources of income.
You just need to put your money into these types of investments and then let them do all the work for
you.
Now let me dive into each type of investment in turn so you can see exactly how you can use money to
make more money.
OK first of all I'll talk about ETF.
So what exactly is an ETF ETF stands for exchange traded fund an ETF is simply an investment portfolio
that contains various types of investments such as stocks bonds or some kinds of funds normally are
designed to track the overall performance of a particular stock market or sector.
A bond market or even a real estate market.
So when you buy an ETF This simply means that you're investing in a diversified portfolio that includes
a number of different investments.
For example you invest in DNA which is often known as Diamond ETF.
It's an ETF that's designed to track the overall performance of the Dow Jones index.
For those who don't know about the Dow Jones the Dow Jones Industrial Average has a stock market index
that consists of the 30 largest businesses in the United States.
So when you buy this ETF This simply means that you're investing in those 30 largest businesses.
And the cool part is your money will be diversified and invested into many different markets sectors
such as financials health care technology energy consumer services et cetera.
And that's the reason why investing in AFP's is the best way for you to build your long term wealth.
You don't need to buy a lot of companies by investing in a single ETF you're investing in different
businesses in different market sectors.
Basically are the same as mutual funds or some kinds of index funds but there are expense ratios are
much lower.
For example if you buy a mutual fund you'll have to pay one to 5 percent of your return in management
fees every year.
While if you hold an ETF you'll only have to pay from point 0 1 percent to less than 1 percent in management
fees.
That is to say investing in an ETF is 10 to one hundred times cheaper than investing in a mutual fund.
If you invest in ETF you can easily make a 10 to 15 percent return every year.
It still requires some strategy though.
The fact is that not every ETF is worth investing in some ETF come up with bad performance high management
fees and a high level of risks so you'll need some strategies or some kind of knowledge to pick the
right investment for yourself.
Ok one more useful tip to take away before we dive into the next type of investment.
Always make sure that you stay away from mutual funds and Wealth Management Services.
That's because buying an ETF is much cheaper and you can easily manage your portfolio by yourself.
There's no need to waste your money on any wealth management services.
You are an investor.
So do it yourself and take full control of your money.
OK.
The second type of investment value stock.
I bet you've heard a lot about value investing.
So what exactly is value investing.
Value investing simply means you buy something that's worth $2 for only one dollar.
Well not exactly but you get my point here.
Value Investing means you buy a company when it's cheap or undervalued and then sell it when it becomes
more expensive or overvalued.
So how do you know if a stock is undervalued or overvalued to determine whether stock is cheaper expensive.
You'll need to estimate its intrinsic value.
A company is undervalued when its intrinsic value is greater than its current market value.
Intrinsic value is simply a real value or true value of a business and market value is simply the price
at which the stock is currently selling.
So to put it simply if the true value of something is greater than the price at which it's selling this
means it's cheap undervalued we're underpriced.
So when you buy a stock that's undervalued.
There will be a high chance that its value will increase over the long term and you'll make a profit.
That's all value investing is about buy something that's now cheap and sell it later for a profit.
Similarly a company is considered overvalued when its intrinsic value is lower than its current market
price.
The fact is that not every stock is worth investing in even if they're blue chip companies.
If you frequently perform intrinsic value calculation you'll find that 90 percent of companies you're
evaluating are overvalued.
There will be a very low chance that you'll make a profit if you buy these stocks.
And of course there will be a very high chance that you'll lose your money if you picked the wrong investment.
Now I'm not scaring you but just like any other businesses investing involves some kind of risks.
But some of these risks are controllable and can be easily avoided if you equip yourself with enough
knowledge.
If you master the art of value investing you can easily make a 15 to 25 percent plus return every year.
Actually when you do everything right you can easily make 20 percent or more in just a few months.
Just like I and many of my students did.
There are thousands of opportunities to make money in the stock market.
There are thousands of stocks out there.
So the only thing you need is a real strategy to pick the best ones to invest in OK.
Now I'll talk about the third source of income dividend paying stocks investing in dividend stocks is
the easiest way for you to profit from the stock market.
Dividend Stocks are simply companies that pay good dividends to their shareholders and investors like
yourself a stock dividend is an amount paid out by a company usually in the form of cash to investors
who hold shares of their stock.
So investing in this type of investment is very easy but profitable because you just need to find a
good company put your money into it and wait for it to put the money back into your pocket.
Most companies pay dividends quarterly.
So you can collect the money four times a year just invest in a stock that pays good dividends.
Forget it.
And three months later collect the money without really putting in any effort.
That's exactly what dividend investing is about.
The most interesting thing about dividend stocks is that they're a hybrid investment.
This means you invest once but you can profit twice.
Sounds interesting right.
Dividend Stocks allow you to share in company profits while also retaining ownership of your investment.
When you invest in a dividend stock you can earn a 5 percent to 12 percent plus return every year paid
out by the company in the form of cash dividends and because you own all the shares you bought when
those shares increase in value you'll make more profits.
Normally a good dividend stock will potentially grow at 5 percent or more every year.
So if you put your money into this type of investment you'll potentially earn it 10 percent or more
return on your investment every year without any effort.
However similar to eat and value stocks not every dividend stock is worth investing in some lousy businesses
tend to attract outside investors by offering a high dividend yield.
So you'll need to evaluate them carefully to find out if they're actually a solid company.
OK.
The last type of investment that we're going to talk about is right.
Reed stands for real estate investment trust.
Arete is a company that owns multiple rental properties such as office and apartment buildings hospitals
shopping malls hotels resorts and so on.
Similar to arete is more like an investment portfolio that includes many income producing real estate.
So when you buy or read this simply means that you're buying a small part of the portfolio and the cool
part is you don't need to have millions of dollars to become a landlord by buying a single rate.
You'll become a part owner of many rental properties reads make a profit from renting out their properties
and they're legally required to pay out as much as 90 percent of their income to unit holders or investors
like yourself every year.
So investing in rates will bring you a stable stream of passive income and the more interesting thing
is that your money is now diversified into the real estate market.
Just like investing in dividend stocks investing in Rietz is very simple.
You just need to find a good company.
Put your money into it and wait for it to put the money back into your pocket.
Investing in rates will potentially bring you a stable return of 6 to 12 percent every year.
So how can you start investing your money now.
The first thing you'll need to do is to make an investment budget.
You should save 10 to 30 percent of your current income to invest.
You don't need a lot of money to start investing.
You may start with small investments of just a few hundred bucks every month and frequently add more
money into your portfolio.
The more money you save to invest the more wealth you can achieve.
In order to build your investment portfolio you may allocate your money as follows.
Put 40 percent of your money into ETF.
Invest 25 percent in value stocks and the remaining 25 percent in some income producing assets like
dividend stocks and Rietz.
Investing in ETF is very important because they'll bring you a stable long term profit.
Make sure that you'll invest at least 40 percent of your money in this type of investment.
Investing in value stocks will help you grow your portfolio faster as well as maximize your profit.
If you can master the techniques of value investing you can easily double or even triple your money
in just a few months.
However investing in value stocks is much riskier than investing in other types of investments.
So if you're just starting out you should not invest more than 25 percent of your money in this type
of investment investing in income stocks like dividend stocks and Rietz We'll bring you a good stream
of passive income.
This is the easiest way to profit from the stock market.
You just need to find some good companies.
Put your money into them and collect dividends.
You can easily make a few thousand dollars extra every year.
You can use these earnings to supplement your own lifestyle.
Schedule a vacation for your family saved by some luxury stuff do charity or do whatever you want.
Investing in ETF will bring you a stable long term profit.
Investing in value stocks will help you grow your money faster.
Investing in dividend stocks and Reith's will help you create a good stream of passive income.
Now you have a robust investment portfolio in order to get wealthy.
You must find ways to increase your income.
It's all about income guys.
You must create multiple streams of income.
In this video you've learned four different investment vehicles that you can use to grow your money.
Investing in apps will bring you a stable long term profit.
Investing in value stocks will help you grow your money faster.
However they often come up with a higher risk and require a lot of expertise.
And if you want to make easy money investing in dividend stocks in Rietz may be the best option for
you.
Okay that's enough for today's lesson.
Now you know exactly how to use money to make more money you see.
Investing is easy right.
It's not rocket science.
You can easily create an extra stream of income that you can use to improve your lifestyle or support
your family.
Make sure you keep an eye on your inbox because things are getting more exciting in the next video.
I'll share with you my simple yet powerful technical analysis technique that you can start using today
to make over twenty point three one percent return in just a few months.
I'll teach you step by step how to setup the technical indicator and how to use it effectively to determine
if a stock's price will go up or down in the near future.
I'll also give you my best investment tips such as how to choose the right stockbroker for yourself
how much money should you have to start investing and a lot more.
So make sure you don't miss the next video.
Glad you enjoy it here and I'll see you in the next video.