Investing 101: Cutting Through the BS and Building Real Wealth

Hey there, wealth builders! Stoy Hall here from Black Mammoth, and today we're diving into a topic that's essential for anyone serious about building wealth: investing. Now, I know what you're thinking - "Stoy, isn't investing complicated and risky?" Well, grab a seat, because we're about to cut through the BS and break this down!

P.S. I answer emails, shoot me some questions, love to discuss and hlep!

The Truth About Investing

Let's start with some real talk: investing isn't easy. It's a lifelong journey, just like building wealth. But here's the kicker - it's absolutely necessary if you want to build real, lasting wealth. So let's dive in and demystify this stuff!

Step 1: Start with Why

Before you even think about buying a stock or mutual fund, you need to ask yourself one crucial question: Why are you investing? Are you saving for a home? Planning for retirement? Want to live a certain lifestyle? Your 'why' will shape everything else about your investment strategy.

Step 2: Understand Your Risk Tolerance

Here's a truth bomb: there's no such thing as a risk-free investment. But some investments are riskier than others. You need to figure out how much risk you're comfortable with. This depends on factors like:

• Your age

• Your financial goals

• Your time horizon (how long until you need the money)

• Your personal comfort level with market ups and downs

Step 3: Diversification is Key

You've probably heard the phrase "don't put all your eggs in one basket." Well, in investing, that basket is diversification. Here's why it matters:

• It spreads out your risk

• It can help smooth out your returns over time

• It allows you to capture gains in different areas of the market

Step 4: Understand Different Types of Investments

There are many ways to invest, but here are some of the most common:

• Stocks: Ownership in individual companies

• Bonds: Loans to companies or governments

• Mutual Funds: Professionally managed collections of stocks and/or bonds

• ETFs (Exchange-Traded Funds): Similar to mutual funds, but traded like stocks

• Real Estate: Physical property or REITs (Real Estate Investment Trusts)

Each has its own pros and cons, which is why a diversified portfolio often includes a mix.

Step 5: Be Mindful of Fees

Fees can eat into your returns like termites in a wooden house. Always understand what fees you're paying, whether it's to your advisor, for your investments, or both. Remember, every dollar you pay in fees is a dollar that's not growing for your future.

Step 6: Think Long-Term

Here's a hard truth: get-rich-quick schemes are just that - schemes. Real wealth building through investing takes time. Don't chase the latest hot stock or try to time the market. Instead, focus on creating a solid, long-term investment strategy.

Step 7: Automate Your Investing

One of the best things you can do is set up automatic investments. This takes emotion out of the equation and ensures you're consistently investing, regardless of what the market is doing.

The Black Mammoth Approach to Investing

At Black Mammoth, we believe in taking a holistic approach to investing. It's not just about picking stocks or funds - it's about how those investments fit into your overall financial picture and life goals.

Want to dive deeper into investing strategies? Check out my No BS Wealth podcast where we break down these concepts even further.

Common Investing Mistakes to Avoid

1. Trying to time the market

2. Chasing past performance

3. Neglecting to rebalance your portfolio

4. Letting emotions drive your investment decisions

5. Not understanding what you're investing in

The Bottom Line

Here's the truth: investing can seem complicated, but it doesn't have to be. Start with the basics, understand your goals, and don't be afraid to ask for help. Remember, it's not about getting rich quick - it's about building sustainable wealth over time.

At Black Mammoth, we're all about cutting through the BS and helping you create an investment strategy that aligns with your goals and values. Want to learn more about how we approach investing? Check out our website at blackmammoth.com or hit me up on YouTube.

Remember, investing is a crucial part of building wealth, but it's just one piece of the puzzle. What really matters is how your investments fit into your overall financial plan and life goals.

Until next time, keep building that wealth - one smart investment at a time!

Stoy Hall, CFP® Founder, Black Mammoth

P.S. Got questions about investing or want to start building your investment strategy? Hit us up at nobswealth.com. We're here to help you navigate the complex world of investing and build real, lasting wealth!