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Personal Finance Advice for Millennials and Beginners | Books, Resources, DIY Investing, and More!

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What is up everyone? Welcome back to my channel. In today’s video, we are going to be talking
about personal finance. Now, I’m definitely no expert in financial
management, nor am I an investment manager or anything like that. But what I do know, is that when I was in
business school, I learned a lot about corporate fiance. And in corporate finance I learned about cashflow
evaluation, capital budgeting, all that stuff. But after I graduated, what I realized is
that I didn’t even know how to manage my own money. And to be quite honest, it was pretty embarrassing. So what I ended up doing, is I took matter
into my own hands. And I self-taught and really learned all there
really was to know about basic personal finance, and also getting my feet wet into the world
of investing. Really making sure that my money is working
for me, and not just sitting in a savings account that’s making very low interest. So that’s why in today’s video I’m actually
going to be sharing with you the exact resources that I tapped into to learn more about how
to manage my money. But not only how to manage my money, but also
how to grow and protect my money as well. Also, make sure that you stick around until
the end, because in the end of the video, not only do I share my investment strategy,
but I also have an exciting announcement to make as well. So with that out of the way, make sure you
grab a cup of coffee, or a cup of tea, and maybe even a warm blanket. Because I have a feeling that this video is
going to be pretty information packed. Now, the first resource that really helped
me a lot to get started in managing my money is a book called The Wealthy Barber Returns. Now, this book covers a lot of the basics,
in terms of how to responsibly manage your personal finance, especially when you are
just starting out. But the key thing that I did take away from
this book, is that when you are looking for financial advice, do not go to a bank. Now, for me, when I first read this piece
of advice I was a little bit taken aback. Because you would intuitively think that if
you are looking for financial advice then you would naturally go to your bank, like
RBC, TD, Scotia, whatever to find a financial advisor and get advice from them. But it makes complete sense, as someone who
has worked in a commercial bank. I actually used to be a teller for a couple
of years at a commercial bank. I can first hand say that a lot of the people
that work at the banks, the financial advisors, the mortgage brokers, whatever. They don’t have your best interest in mind,
because they have their own quotas and their own incentives to make within the company. Because remember, banks are businesses, and
as a business they have the responsibility to drive money to their shareholders’ pockets,
and not necessarily yours or mine. Another crucial thing that I learned from
reading The Wealthy Barber Returns, is the fact that a lot of the financial advisers
that work at these banks actually do not have fiduciary duty. Now, you may be wondering, “What exactly is
fiduciary duty?” Well, fiduciary duty is basically the legal
obligation that someone has to act in the best interest of another person or another
client. Now, I won’t go into too much detail on this
legal term, and if you want to do your own research, then by all means. But what I found really eye-opening and actually
super alarming, was finding out that if your TD financial adviser actually gives you the
wrong investing advice, or the wrong management advice, then they technically aren’t legally
liable for the damages that you might incur from taking their advice. And the fact that they actually aren’t legally
obligated to act in your best interest. So the advice that I took from The Wealthy
Barber, is that if you are in a position in your life where you are looking for financial
advice, do not go to your local bank. Instead, go find an independent financial
adviser. And when you do find and independent financial
adviser, make sure to ask them if they have fiduciary duty. Because when they have fiduciary duty, that
means that it is their legal obligation to act in your best interest and give you the
best advice that they can possibly give. Not only this, independent financial advisers
are great because they aren’t tied to a big bank or a big company. That again means that they are giving the
best advice that they can possibly give, and making sure that you are paired up with the
best products, or the best services that are best suited for you. Now, the second book that really taught me
a lot on how to protect my wealth is a book called Stop Over-Thinking Your Money. Now, this book was so amazing because it was
literally so practical. And one of the key takeaways that I took away
from the book is the importance of insurance, specifically disability insurance. Now, many of us have home insurance, car insurance,
tenant insurance, and even phone insurance. But what about our biggest single asset? Our ability to earn income. Now, let me break this down. When you are young, so let’s say you’re my
age. I’m 24. The biggest asset that I have is myself. It’s my ability to generate income. It’s my ability to continue working so that
I can get money. But let’s say I get hurt one day and I have
to take a temporary leave from work, and this leave is indefinite. I have no idea when I’ll be returning back
to work. If I don’t have disability insurance, then
I’m basically screwed. Because when you have disability insurance,
if one day, knock on wood … I don’t have wood right now. But if I had wood, I would knock on it. Let’s say one day you get hurt and you can’t
come to work anymore. If you have disability insurance, even if
you aren’t physically at work, you can still get money every month to support yourself
because you have that insurance. Now, the reason why this was such a craze
takeaway for me, is because that’s what I thought life insurance was for. Well, I was completely wrong. Because life insurance and disability insurance
are two completely different things. Now, what I learned in this book is understanding
the difference. Life insurance is basically there to protect
your dependents, and life insurance is really important if you have a kid, if you have husband
or a wife, or if you have sick parents that depend on your income. What that means is that when you are young,
disability insurance is far more important than life insurance. Now, it’s not to say not to buy life insurance
because everyone is different. But the key takeaway that I took from this
book is to not sleep on disability insurance, because it is probably one of the most important
insurances that you can buy for yourself. Because as I said earlier on in this video,
when you are young the biggest asset that you have is yourself. And if one day you go to a club and you dance
so hard that both your legs break, and you can’t go to work, then, if you have disability
insurance it ensures that every month, even if you aren’t at work, and while you’re on
the hospital bed resting up your legs or whatever, you’re still getting steady cashflow coming
in every month. Remember, if you are currently at a job, or
you’re self-employed, make sure that you are protecting your money by first protecting
yourself. Now, let’s talk about a fun topic. But not only is this topic fun, it’s also
truthfully pretty intimidating as well. And that topic is investing. Now, really quickly, there are two types of
investing. The first is active investing, and the other
one is passive investing. Active investing is basically when you’re
actively timing the market to make sure when you’re going to buy and when you’re going
to sell. This is basically the glamorized way of investing,
and it’s pretty sexy. It’s pretty much what you see in movies like
Wolf of Wall Street. Where you see people glued to their computer
in Wall Street, timing the market, making sure they’re buying on time, and making sure
they’re selling on time in order to beat the market. Now, passive investing, on the other hand,
is when you buy and you hold. You basically buy the stocks, or you buy the
bonds, or you buy whatever you’re investing, and you hold it for long periods of time. And during that time when you have these passive
investments, you’re not really touching it. Maybe every, or every so often you might rebalance
the portfolio, but the general rule of thumb is that you don’t really touch these investments
until years later when you really need the money. Now, for me, I personally am more of a passive
investor, where I like to buy things and then hold them. My investments currently are a mix index funds,
crypto currencies, and also a little bit of weed stocks as well. But in today’s video I’ll only be taking about
index funds, because I believe that index funds are really great for beginner investors
that want to get their feet wet, and if you want to make sure that your money’s just not
sitting in a general savings account making a subpar interest rate. Now, at this point of the video you might
be wondering, “What exactly is an index fund?” An index fund is basically when you invest
in an entire index of bonds, stocks or any other type of investment. For example, the S&P 500 is an example of
an index. Let’s say you’re buying an index that invests
in the entire S&P 500. This means that by buying this index fund,
you are actually buying a little piece of every company that’s in the S&P 500. Let’s say this S&P 500 goes up, that means
your entire portfolio goes up with the S&P 500. If the S&P 500 goes down, then your portfolio
goes down as well. Now, the key reasons why I decided to first
start off investing in index funds when I was still a beginner, and to be honest, I’m
still a beginner really. I’m not the most intense person out there,
so that’s why, do your own research. But the reason why I chose to invest in index
funds is not only because it’s more cost effective, and it’s more tax efficient, but also because
I’m a really freaking lazy person. I can’t be bothered with active investing. I don’t want to stare at a computer all day
timing the market and making sure that I’m buying and selling at the same time in order
to bet the market. For me, I’m more of a lazy person. I just want to invest my money, making sure
that I’m getting a good return on it, and letting it go. Another reason why I was really confident
in choosing to invest in index funds as my first choice of investment when I first started,
is because I’m still really young. And I started investing maybe about four years
ago, and knowing the fact that I have so many more years to go, that means that, that money
that’s sitting in my index fund is actually going to compound over time. So, let’s say in 20 years from now, or in
30 years from now, or even in 10/15 years from now when I need the money, that money
has been working for itself, and I didn’t really have to tap into it, or I didn’t really
have to work hard for it. And I know that I’m making better returns
than if it was just sitting in a savings account. And lastly, another reason why I decided to
invest in index funds, is because historically and statistically studies show that it’s actually
really hard to beat the market. And usually, if you are in active investing,
your purpose is to beat the market. But you can do your own research. Research shows that it’s actually very difficult. And for someone who is average, like me, I
don’t necessarily have that skill to beat the market. And if I did pay someone else to try to beat
the market, it’s not guaranteed that they will, and I’ll also be spending way more money
on fees in order to pay someone else to manage my own investments. Now, I don’t really want to go into too much
detail on this. So you can actually go and Google and research
active investing versus passive investing, and come to your own conclusions. But for the purpose of the video, I do want
to share the two resources that helped me get started in investing passively. The first resource is Canadian Couch Potato. Canadian Couch Potato is a Canadian blog that’s
dedicated to index investing. And if you are a beginner then I highly recommend
checking out their FAQ page to learn more about index investing, and the frequently
asked questions that people have about it. Also, one of the best things about Canadian
Couch Potato is that they actually have model portfolios for you to follow if you are unsure
what type of asset mix that you should have for your portfolio, based on your own risk
tolerance. So I found that resource incredibly helpful. Now, another amazing resource if you’re really
interested in this index investing, or even just learning about investing in general is
a book called The Value of Simple. This book was amazing because it not only
broke down financial concepts and principles in easy to understand language, but it also
gives you the step-by-step tutorials on how to set up your investments on platforms like
Tangerine, TD, and Questrade. And what you’ll find if you actually read
The Value of Simple, a lot of their recommendations are really similar to the ones that you see
on Canadian Couch Potato, because technically they follow the same strategy. And so, that why with the blog and with this
book, it really, really helped me to get started in terms of investing my money. And I know, if you got to this point of the
video you’re probably feeling really overwhelmed, especially with the part about investing. Trust me, I was there before, but what helped
me was just really taking the time to actually research things myself. And if you actually take the time to research
things, and you also reach out to financial advisers, especially independent ones that
have fiduciary duty, then you will be in a much better place. Verus keeping your money in a basic checking
account, or a basic savings account. And what I also found is that because I started
off with really basic index investing that’s known to be really safe, and also known to
be really affective, and of course, do your research on that, I became more familiar and
more comfortable with investing in general. And that’s why I decided to later on invest
in other things, other than just index funds. I really hope that you found this video helpful. I really wanted to breakdown the key takeaways
of the books that I’ve read, and the things that really opened my eyes and made me a smarter
person in terms of how to manage and invest my money. Also, guys, before I forget, the important
announcement is that I have just started a new Facebook group called The Fearless Boss
Network. I really wanted to make this group so that
I could connect like-minded people together. I’ve always wanted to form a community of
people that could support each other in their goal-getting dreams, and this is it. It’s going to be a group where we can support
each other on our goals, and for me to also share resources that might be helpful to you. And for you to hopefully do the same to all
the members that are in the group as well. I personally believe that when people support
other people, magic happens. And this the intention of the group. So again, if you are interested, the link
is going to be down below. Not only in the description box, but also
in the comment section as well. Anyways, guys, thank you so much for all of
your support. I hope you enjoyed this video, and I’ll see
you in the next one. Bye.

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45 thoughts on “Personal Finance Advice for Millennials and Beginners | Books, Resources, DIY Investing, and More!”

  1. Vanessa Lau says:

    Hey everyone! Thanks so much for watching! Here's the link to join my program "THE BOSSGRAM ACADEMY" HERE **

    https://vanessalau.mykajabi.com/

  2. Rachel Bower says:

    Fantastic video Vanessa! You raised lots of great points. Can't wait to see the next one. 😊
    Definitely joining the Facebook group as well.

  3. ANDREW ETHAN ZENG says:

    Just stumbled upon your channel Vanessa, great stuff going on here. You definitely deserve more subs but keep up the hustle 👌

  4. Sarah Fontenot says:

    Great video!!! And so true, we are indoctrinated into struggle and not WEALTH! Thanks for all the great information!!

  5. Brontë Goldberger says:

    Love this video! One comment: at the end of the videos if you could summarize in bullet points so it wraps up nicely and refreshes what we just learned!

  6. Courtney Callahan says:

    This was packed with information! I love how you break down these topics in a way that's so easy to understand. A lot of money talk goes right over my head but I obviously still want to be as informed as I can, so this was really helpful. And great tip about fiduciary duty…that's definitely something I'll always remember!

  7. Lama Jigme Gyatso: the Rational Contemplative says:

    important topic – liked and shared 🙂

  8. Lucy Griffiths says:

    Love the energy lovely! Well done!

  9. Leanne Weaver says:

    Such great info!! I struggle with my personal finance and loved all your tips! ❤️

  10. madhumitha13 says:

    Such a resourceful video! Finally a smart Canadian youtuber who gives advise suitable for Canadians.

  11. Kevin Burciaga says:

    You look and sound great on YouTube, Vanessa. Keep going. I sent a request to join your FB group.

    If I could solve one problem in the world, it would financial illiteracy.

  12. Danny N says:

    Good video. But one really should not rely on anyone else to act in your best interest. YOU are supposed to act in your own best interest. Yes, do ask others for information, but only you know your own financial needs and goals. Ultimately, you have make your own investment decisions.

  13. Amanda Horvath says:

    Love your energy and the shot is beautiful! Definitely subscribing and following your content. I need to focus more on personal finance : ) I just set a goal around it this weekend so this is perfect timing.

  14. Wild Woman Enchanted says:

    awww your cuteeeeee little cat!!!! her paw… lol…. Elizabeth

  15. Wild Woman Enchanted says:

    THE Wealthy Barber… OMG I read that YEARS ago… it was so helpful… great recommendation! ….. and yeah.. the biggest asset is yourself… That is really good advice about disablity …. what a great video… just good advice after good advice . You say your a beginner, but you sure know a lot in such a grounded way! to my eyes and ears anyways. Thank you. ~Elizabeth

  16. Adriana Girdler says:

    I'm loving your energy in this video, and I LOVE the book The Wealthy Barber. I'm always recommending it to people. Cheers!

  17. Life With Dony says:

    Great video, jam packed with information.

  18. Lydia HMT says:

    idk why am feeling so lucky to discover ur channel…AM-A-ZING videos ! thanks for ur advices n the effort ur putting in each video..love ya Vanessa <3

  19. Sean Maib says:

    Hi!! I just found your channel! Great job!!

  20. Activity Friend says:

    you most beautiful woman ever talks about finance, Vanessa:)

  21. Sax Station says:

    Thanks for sharing Vanessa.

  22. Neng Engko says:

    I was browsing around the video that contains personal finance and investing and yeayyy !!! this is perfect!!! you nailed every content and your advises definitely a MUST follow especially for a really beginner like me. Thank you for sharing your knowledge. I will be looking for more of your videos 🙂

  23. Sail Financial says:

    Research is key! Best way to manage your money is to understand how to do it! 😛 Also great to hear you invested in more than just indexes!

  24. Grace Urdaneta says:

    can you make a video about bonds available to Canadians. Your views on mutual funds. How to start buying stocks.

  25. Joy Smith says:

    What are your thoughts on debt?

  26. THE MADATING FAMILY says:

    I love your videos you have so much good knowledge I would like to say that you ❤️💪🏾

  27. Inverse^2 says:

    Great video! Wish I had your mind set when I was your age. What crypto are you invested in?

  28. Wrenchguy says:

    Just stumbled upon this channel. Good points! Your views on money are definitely different than people living in NYC (Where i am from) and people in chicago (Where i used to work)

  29. Kirasanban says:

    I’m 28 and had to go out on disability at 26. Because I had disability insurance through my employer, I am able to have 60% of my old salary. I’m considering making a YouTube channel for young disabled adults going through the process of applying for disability. I was constantly told that it’s impossible to get approved in your 20s but I was approved on the first try, and never had to appear in court.

  30. Michelle Osorio's Dare To Dream School says:

    Wow I never thought about the danger of dancing so hard I break both my legs. That’s some hardcore dancing.

  31. BeautyBeast Fitness says:

    So much I didn't know in the video haha, thank you!💜

  32. Jennifer tv says:

    thanks for all the tips! love your videos Vanessa! 😀

  33. Felix The Dev says:

    Excellent video, Vanessa. Thank you. 

    Another good book I recommend is "Unshakeable: Your Guide To Financial Freedom" by Tony Robbins. It talks about index funds as well.

  34. TevanS Haven says:

    Super helpful. Thank you Vanessa.

  35. Success. Inc says:

    May I get a kiss ? 💋🙏😞

  36. Teesh Campbell says:

    Your Canadian!? I'm so happy finally i have someone in my country to look up too and info that's based in Canada

  37. The Glow Up Secrets says:

    Love love love that this is Canadian based!! You’re the best, thanks for all the tips ❤️

  38. Carlo Santa Ana - Money & Motivation says:

    Thanks Vanessa I loved your video I'm passionate about investing and started a channel about it! Keep it up !!! SUBSCRIBED!

  39. Keillan Hadden says:

    Learnt so much from this video! Keep it up Vanessa!

  40. Ashley Freeman says:

    Could you do a video on the weed stocks you invested in and why. Or share your resources on how you picked weed stock

  41. Doctor Shawn says:

    The best financial advice is to become a financial expert yourself and then manage your own money. I have learned from my own mistakes that paying others to do this is a huge waste of money because most experts are not that good at it. I have done a lot of research on this topic and honestly, most of the information is pretty easy to grasp, but does take time and practice to perfect. Start early and be motivated to learn

  42. justCurious69 says:

    I am out of here.
    She is looking for a whiteman

  43. Felix The Dev says:

    Great video, Vanessa. Something I want to share is the Robinhood app. It's easy to use and to get started investing. Hope this helps.

  44. david tompkins says:

    Very useful information, also good books to read.

  45. MLK Ortega says:

    Best video on personal finance I've seen so far !

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