5 Reasons Why You Should NEVER Invest Your Money

what's up everybody Nate here and know the title of this video is not a joke now I know what you're probably thinking Nate you literally say all the time that you have to invest your money in order to build wealth and that is definitely true if you want to create a sustainable financial future for you and your family then you're going to have to invest your money but the reality is that investing is not for everyone and in certain situations it can actually be a very bad thing for your finances so today I want to talk about the five reasons why you should never invest your money especially if you are in one or more of these situations number one you should never invest your money if you have too much debt or too much High interest debt now there has been a debate amongst experts and investors and economists over investing your money when you have a lot of debt and the reason being has everything to do with returns now think about why you invest your money in the first place you want to invest your money because you want to buy something something that is going to appreciate in value that you're going to get some type of year-over-year return on now just to give you an example if you invest your money in an S&P 500 Index Fund or ETF then you typically can get a return of around 7% every single year the S&P 500 has gone up around 7% on average year-over-year for the last pretty much 100 years right so investors who invest in that index can expect to get that much of a return but the problem is if you have a lot of debt and you have a lot of interest on that debt well then you might not be able to get returns that make sense for you to invest in fact you're still going to be putting way too much money into that debt and you're not going to get enough out of your Investments for instance if you have a lot of credit card debt well credit cards typically have interest rates that are over 20% so that means you are losing 20% of your money every year because you're paying into that interest and you're only gaining around 7% by investing your money so it makes a whole lot more sense for you to pay off that debt first and to really lower your debt now if you have a little bit of debt and you only have a little bit that you're losing every single month then maybe it makes sense for you to invest your money but if you have way too much debt and you're just going to lose all of the gains that you would get by investing then it doesn't really make much sense so you should never invest your money if you have Mounds upon mounds of debt the second reason why you should never invest your money is if you are not educated at all on how to invest now in 2023 it is easier than ever for people to start investing you can literally just pull out your phone download an app like M1 Finance or robit hood and start investing your money all you need to do is connect your bank account right so it is super easy you can start investing with $1 a day and that is a really great thing it has made investing extremely accessible right because if you think about my parents generation and my grandparents generation it wasn't exactly easy to go out and invest in in real estate or stocks or Commodities like gold and Bitcoin and other things right because for one Bitcoin didn't exist but for two it was a lot more difficult because you had to go to a broker and there was a ton of broker fees right because you were literally having to go to somebody whose job it was to facilitate that transaction that was very expensive and it made it very difficult for a lot of people to grow their wealth but in 2023 you don't have to do that you can start investing pretty much today it is extremely simple and that has meant that Millions ions more people have started investing like in 2020 when the pandemic was at its height millions of Americans were investing their money for the first time we saw a large portion of investors become firsttime investors and like I said before that is a really great thing but the flip side to that is that investing well there is a lot of risks and to be honest with you you could eventually lose every dollar that you put into investing if you don't invest the right way if you don't know what you're doing and that is also created a lot of problems for Wall Street because there's a lot more volatility beginners come into Wall Street they start investing and now at the first sign of trouble they pull their money out when you have millions of people pulling your money out all at once all stocks start to go down so that creates sort of a dangerous situation for all investors on Wall Street and to be honest with you if you don't know what you're doing you could lose a ton of money and you could also be very susceptible to a lot of predatory videos online or Crea or influencers who are trying to tell you hey buy this uh Bitcoin or buy this stock this Stock's going to blow up you should buy it and if you're a beginner and you have no idea what you're going to do then you might be a little bit more susceptible to believing those things and that is really dangerous because you could lose a lot of money so whenever you do anything whenever you invest at all you always want to do your due diligence which means you're doing your research and you're making sure that you're educated on how stocks work and you're educated on how real estate works or your you're educated on what you are doing so you know how the system works and you know what your options are so that way you can facilitate your own financial future and you don't need to necessarily listen to an advisor and you don't necessarily need to listen to random creators online because they might not have your best interest in mind so you don't want to lose money you always want to try to put yourself in a really good position to make money in the stock market or in real estate or whatever you invest in and that comes with education so you should never invest your money if you have no idea what you're doing because it's dangerous and very very risky and investing like I said before is already risky and dangerous enough so why add on to that by not knowing what you're doing the third reason why you should never invest your money is if you don't know what your financial goals are now what is your why right so this is sort of a separate conversation of the education side knowing what you're actually doing by investing but then the second part is knowing exactly why you are investing why do you want to build wealth do you want to buy something that is going to continue to appreciate in value that you can sell later do you want to grow wealth for your family do you want to retire earlier do you want to create generational wealth for you and your family or maybe you just want to have enough money for you once you retire these are all questions that you're going to have to figure out and have some sort of plan for you need to sort of plan ahead and decide what do you want to do with all this money that you're investing if the answer is just I want to have a whole bunch of money to spend then be honest with yourself right you want to invest so that you have a lot of money to spend later on down the road and get the things that you want be honest with yourself and figure out what exactly your goals are and why you want to invest maybe you want to be an investor that invests only in sustainable companies maybe you want to be an investor that props up certain industries that you really value and think are the future of our entire planet these are all things that you're going to have to answer for yourself and what I will say here is don't get too comfortable in whatever your plan is right because for one you're not going to be able to stick to your plan long term right so you have to be flexible anyway if you say well 20 years down the road I'm only going to be investing in this well you don't want to create too rigid of a plan because life is going to change you're going to have major life things happen to you like maybe you have a child or maybe you get a new job right like things are going to change your financial plan is definitely going to change down the road so put that into your plan plan for things to change and that will help you sort of be flexible and create new goals as you go along so you want to kind of create umbrella goals right so you want to know what you want out of life and that's a deep soul-searching question but to be honest with you don't take forever to answer this because life is going to change you don't need to spend the next weeks and months trying to figure out well what's my investing why why because that's just going to delay your investing Journey so you want to try to figure out what you want but don't take forever to do it because things are going to change down the road so figure out what you want why you want to invest and then establish goals from that hit goals throughout the way throughout your journey so that way you can accomplish them and build your wealth accordingly but at the end of the day if you don't know why you're investing that it makes that money so much easier for you to continue to pull out and to continue to sell Investments because well you just don't know why you're investing in the first place right you don't have a goal in mind and at that point you might even have some resentment because you're literally just throwing money away and every single time there's volatility in markets then you're going to get upset because you're like I'm just throwing all this money away and I'm not even using it on anything so I'd much rather have that money today and again that is a dangerous way to go because now you're sort of hurting your potential at compound interest and your potential at growing your well further in the future because you don't know what you're doing today so you have to figure that out you have to establish your goals and if you don't establish your goals you should never start investing number four and it seems very obvious but you should never start investing if you you do not have enough money now I'm not talking about somebody who says they don't have enough money because they don't have enough money to go to say Starbucks right like they're not able to make that Starbucks trip this week or they're not able to order something on Amazon that they really wanted to I'm talking about somebody who literally does not have the income to support investing like if you have to decide between feeding your family or paying a bill and investing then you do not have enough money to start investing and if you start investing well now you're just going to create a bigger problem for yourself right now right now you're not going to be feeding your family now you're not going to be feeding yourself so there is no point in investing because you're not going to be able to see the value from it because you're struggling so much today so in order to start investing successfully you're going to have to bring your income up at some point you're going to have to figure out ways to sort of make a little bit more money whether that's a side hustle whether that's a new job whatever it may be that's a different situation altogether when we talk about making money but at the end of the day you have to earn more and you have to have a little bit more income if you want to successfully invest because like I mentioned before investing is risky and you might lose everything that you invest there's always that potential so if you're investing money that you really really need today and then you lose it well now you're putting your family your finances and yourself at a huge risk so you never want to invest if you don't make enough money and number five and simply put you should never invest if you do not have the right mindset and what I mean by that is if you are not somebody who is able to sort of handle the risk of investing the volatility of the markets or you're somebody that does not see the value in investing then you should not invest your money because you're just going to create resentment from it and you're never going to understand while your money to you is just being thrown away every single week or every single month if you're somebody right now that doesn't see the value in investing and you're somebody that looks at investing and just says well I'm just throwing my money away and I'd much rather use that money today on things that I want or need then yeah don't invest your money investing is a choice Building Wealth is a choice you don't have to invest your money just because some random person online thinks that you should if you don't want to invest your money if you don't see the value in it and you'd rather have the nice things today and to continue to go into debt because you want the bigger car and the bigger house and all of these different things right that don't invest your money it's not for you and to be honest with you it's just going to be a detriment to your finances but if you want something that is going to be sustainable if you have the patience and you have the risk adversion to the stock market or other types of markets then investing might be for you when it comes to anything in life you have to want it you have to want to do things and it's going to be a big sacrifice right putting aside $100 a week or even $50 a week whatever you might have is going to be a big sacrifice because you're not going to see the return on that money immediately right investing is a long-term game like sure you'll probably see a lot of movies out there where you think investor and they're just day trading right they're buying an asset today and they're selling it in an hour or they're selling it in a week or a year that is trading that is extremely extremely risky and I would not recommend it for the average investor and to be honest with you it's not investing investing means longterm you're going to buy a stock or an ETF or an index fund or real estate property and you're going to hold on to it for 5 10 15 and maybe even 30 years right you are investing your money because investing means that something needs to grow it needs to have that sort of growth over time the only way that you can see that is by putting your money in today planting the seed and then watching everything grow over time and that takes a long time and you're going to feel like you're throwing your money away and you're going to get really nervous and worried when there's a stock market crash or when there's a lot of volatility and you see the markets going down you're going to get very worried but be completely honest with you there is is still time and there's still time for your Investments to grow and there is a lot of risk to not investing too because you're not building that wealth right you're not able to create that sustainable financial future because you're always living paycheck to paycheck or you're kind of still sticking in this Rat Race because you don't have a second income or you don't have anything that is going to appreciate in value that could be just as dangerous but like I said before it really just depends on who you are as a person and if you don't want to invest you don't have to there are always going to be reasons why you don't invest your money there's always going to be reasons why you don't do something but at the end of the day you have to decide for yourself do you want to invest your money and if you're in a situation like I mentioned before with one of these five scenarios then you probably should wait to invest your money but that doesn't mean that you should wait forever and investing is the key to building wellth So eventually what you want to do is kind of get yourself out of these situations so that way you can start investing and start building your wealth and then you never have to worry about those situations ever again people are going to say well the stock market's a waste of time or the real estate's a waste of time and you're just throwing your money away and there's not a guarantee that you're going to make money anyway be honest with you you can invest your money and maybe you don't make a million doll maybe you only make $100,000 but I would rather have $100,000 or even $50,000 than nothing by not investing like I said before there are reasons to never invest your money but you want to kind of get out of that mindset and to get out of those scenarios at some point and do whatever you can so that way you think well I can never invest my money because I'm in this situation instead think how can I invest my money what can I do to get myself into a financial position so that way I can invest my money and trust me your wallet your bank account your family and your future self will definitely thank you for starting to build wealth today that's is it for me everybody be kind out there and I'll see you all in the next one

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