Ultimate Guide to Investing For Beginners

Investing in stocks and shares is a way for money to grow, but beginners should consider index funds for a diversified, low-risk approach.

### The Ultimate Guide to Investing For Beginners
* 📈 "The point of investing is for your money to be able to **make more money**."
* 💰 The two ways in which an investment can make money are through **generating income** (e.g., rental income from real estate) and **capital appreciation** (selling an asset for a higher price).
* 🏠 Real estate, stocks, and shares are common investment options, with investing in stocks and shares (e.g., the **S&P 500 index fund**) being **accessible to most people**.
* 💡 "Instead of worrying about stock picking, what you should do is **invest in an index fund**."
* 📉 The fear of losing money in investments is common, but historically, the stock market has **trended upwards over the long term**.
* 🎯 "The point of investing money is for your **existing money to make more money** further down the line."
* 🚀 Fast lane investing involves investing in oneself (e.g., education, skills) and one's own business to achieve **higher returns** than traditional investments like the stock market.

so let's say you want to get started with this investing thing. You might have a bit of money saved. It's probably not enough for a house, but you decide you should probably invest it in something. You could invest in stocks, shares, equities, government bonds, corporate bonds, real estate, foreign exchange, crypto, NFTs, Futures, Fine Art, watches. There seems to be tons of stuff out there, and you might have even seen those ads on YouTube from the gurus talking about day trading and trading foreign exchange, and how you could make money in that way through investing. And on top of all of this confusion, there's the very real fear that you might lose all of that money that you've worked so hard to save up. So in light of all of that, this is The Ultimate Guide to Investing For Beginners, and we're going to split this video up into four parts, which are going to be time-stamped down below so you can skip around if you feel like it. Part one is going to be about the basics and the philosophy behind investing. Part two is

about why and how to invest your money in stocks and shares. In part three, we're going to be addressing common fears, questions, and concerns about investing, like what if I lose all my money. Then in part four, we're going to talk about fast lane investing, which is an alternative approach to the traditional investing thing to build wealth. Part one, the philosophy and the basics of investing. So let's start by talking about what is the point investing. The point of investing is for your money to be able to make more money. So let's say you start off with a thousand dollars that you've saved up through your hard-earned labor. Now you could put that money under your mattress or you could put it in a bank current account. But the problem with that is that there's this thing called inflation that you might be reading about on the news. So your thousand dollars might be able to buy you a MacBook Air right now, but a few years from now when inflation goes up, that MacBook Air is going to cost twelve

hundred dollars, and so over time your money loses its purchasing power, which is why you want to ideally invest in something, because when you invest in something, your money grows magically on its own. More on that later. And that means you can combat the effects of inflation. And that brings us to the next question, which is how does the money magically grow in the first place. And generally, the philosophy behind investing is that you buy something now, and that something makes you more money over time. And there are two ways in which the thing that you buy can make you more money. Let's say you buy a house. It costs a certain amount of money to buy a house right now, but there's two ways the house makes you money. Number one, you can rent the house out, and so you're getting rental income every month. And secondly, hopefully in theory, the value of the house will also rise over time. If you hadn't bought the house and you just had that money sitting in a bank account, and over time you're going to be losing money because inflation is

going to eat away at your savings. Now, houses are an interesting example because you get rental income, and it's very easy for us to imagine what that looks like. Everyone pays rent, so you're making money. But with most other asset classes, you don't have this equivalent of rental. Instead, a lot of these things you're buying, and then you're hoping that you can sell them for a higher price over time. The main exception to this is some stocks and shares, which we're going to talk about a little bit later in the video. And these asset classes is a long list of things that you probably have heard of, but you might not be entirely familiar with. You know, we've got stocks, shares, and equities, which are kind of the same thing. We've got hedge funds. We've got index funds. We've got bonds, government bonds, corporate bonds. You might have heard some people investing in watches and then fine arts. You've probably heard of people investing in crypto and even gaining lots or losing lots. In my case, or losing quite a bit of money because

crypto has crashed recently, and a lot of this can get very complicated quite quickly. And so, we're going to simplify things. For the rest of this video, we're going to talk about investing in stocks and shares because that is the main kind of investing that normal people like you and me can unlock fairly easily. You don't need to have large amounts of money, which you need to invest in a house. You don't need to take on huge amounts of risk and gambling and stuff like you need to do with crypto. And you don't need to be an accredited investor or anything like you need to invest in ancient investing companies or all this fun stuff. So, stocks and shares are kind of the basics of investing. And usually, when people talk about investing their money, what they're referring to is, I want to buy some Tesla or I want to buy some Netflix or I want to buy some Amazon. And so, we're going to talk about that. Part two, why and how to invest in stocks and shares. So, when you're investing in

stocks and shares. For example, you're basically buying a percentage ownership in the company that you're investing in. So, let's say I wanted to buy shares in Apple. For example, Apple is a publicly traded company, which means the public can trade Apple stock. Now, in a dream world, I would just be able to go to apple.com/buy, and I'd be able to buy a stock of Apple, and now I own some percentage of the company. In reality, I can't do that directly. I have to go through a middleman, which we call a broker. But once I've gone through this middleman platform, I now personally own a piece of Apple. Now, I can make money from stocks and shares in two different ways. Firstly, I could make money because I'm hoping the price of Apple or whatever stock I've invested in is gonna rise over time. So, 10 years later, I could sell it for a lot more money than I bought it. Fingers crossed. But the second way in which you can make money through stocks and shares is similar to how you

make a rental income on a house, because certain companies will pay what they call dividends. So, for example, in the UK, there's a company called BT (British Telecom), and they pay dividends. So when you own a piece of BT, you're not just hoping that the price will rise over time, they're also literally paying out some of the profits that the company makes to their shareholders. And so if, for example, you were ridiculously rich and you owned 20% of BT, then every time they declare a dividend, which might be every three months, you would get 20% of the profits that they are distributing to shareholders. In reality, you and me, we're probably not going to own 20% of a huge company like that, because you put that would cost absolutely billions. But instead, we might get, you know, ten dollars, fifteen dollars, twenty dollars, like five dollars, 5.47 here and there. And if we invest in lots of companies that are paying out dividends, then it feels like you've got this free kind of rental income, but really it's profits.

from these companies coming into your account every month, and that's pretty cool. So at this point, okay, cool, you can now buy stocks in these different companies. You can own a small percentage of that company. But how are you supposed to choose which companies? Should you put all your money in Apple, or Netflix, or on Disney Plus? Or should you go with Shell, or British Petroleum, or Ralph Lauren, or like, I don't know, Unilever, or these brands that you might be familiar with? Now, at this point, people have varying different opinions on the matter. But I'm gonna cite Warren Buffett's opinion on this, which is also my opinion on this, which is that if you're a beginner to investing, unless you are legitimately a financial professional who literally does this full-time for a living, you should not try and pick stocks. The average person will not know enough to know which stocks to buy. They won't know enough to know when to buy them. But they don't have to, because if they can buy all of America through an index fund.

realistically, you and me, we're not really going to have an insight into, oh, I reckon Apple's going to do really well because whatever, or I reckon Disney's going to do really well because whatever. There are literally Financial professionals whose full-time day job it is to do that kind of analysis, and even then they don't get it right. A lot of the time. And so what you can instead do is, instead of worrying about stock picking, what you should do, probably not Financial advice LOL, is invest in an index fund. And that begs the question, what the hell is an index one? Well, an index fund is a fund, and a fund is a basket, like a group of stocks and shares or other things, but stocks and shares, for example. And the index component means that this fund tracks a particular stock market index. For example, in the US, there is a really famous Index Fund called the S&P 500, and this is basically the top 500 biggest companies in the US. And you can see here, these are the components of the S&P 500 right now. So

Apple makes up 6.4 percent of the S&P 500 because it's a big company. Then we've got Microsoft, Amazon, Alphabet (which is Google), Berkshire Hathaway (which is Warren Buffett's company), Alphabet Class C (which is also Google), Nvidia, Tesla, Exxon Mobil. You might be familiar with quite a lot of these companies, but if we scroll all the way down to the 500th company, we've got, I don't know, Ralph Lauren and Hasbro. I didn't realize Hasbro was in the S&P 500, but you can see that Hasbro makes up 0.21 of the S&P 500 compared to Apple's 6.4. Because those companies are hugely different in, I guess, market cap or valuation, right? So, the point of the S&P 500 is that it gives you a single number that you can graph over time of like how valuable the U.S. stock market is because, to be honest, most of the value of the U.S. stock market is in these 500 companies. And so, if the value of these 500

companies are slowly increasing over time. Which generally does that mean the U.S. stock market is doing well, and these companies are doing well, and life is all good. If, for example, you're in a recession where the stock market is going down, or if, for example, COVID has just become a thing and the stock market has gone down, that means that collectively people have decided that the value of these stocks is lower than it once was, and so the graph will go down in those moments. So what does this all mean for you and me as normal retail investors? Well, basically, what it means is we can invest in an index fund. So let's say I put a thousand dollars into the S&P 500 Index Fund. That's very good because it means that my thousand dollars is now split between 500 of these companies, and crucially, it's split based on the waiting in the S&P 500. So of my $1,000 that I've just put into the S&P 500, $6.4 would be in Apple stock, and

so now I own $64 worth of Apple stock, and that's pretty cool. I now own a bit of Apple. $5.4 of that would be Microsoft, so I now own $54 worth of Microsoft stock, and 0.015 of that is going to be Ralph Lauren, which is 498th on the S&P 500. So I now own $14 worth of Ralph Lauren stock. Now, this is a very good thing, and this is what Warren Buffett recommends. In my view, for most people, the best thing to do is still on the S&P 500. He says that, Hey, if you had an extra $100,000 to invest, you should just put it straight into the S&P 500 or some other big Index Fund because over time your money is going to track the market. You're not trying to say, 'Hey, I have a crucial insight into the market and I know that Apple is going to outperform all these other companies.' Instead, you're thinking, you know what, I'm just a normal person.

don't have time to spend 80,000 hours a week trying to research all of this stuff. I'm just gonna kind of diversify my money across all these top 500 big companies in the US. I think overall U.S. companies are going to go up over time, and therefore I don't have to think too hard about this. So what's the alternative? Well, we talked about how you could theoretically pick stocks yourself. So you could say, you know what, I'm going to ignore the S&P 500. But chances are you are not going to beat the market. Chances are, unless you just get really lucky, you're not going to be reliably able to get the returns that you would get by just investing in all 500 of these companies. Now, there have been a bunch of studies and surveys, and Warren Buffett even did a challenge experiment thing about this that basically show that very few funds overall actually outperformed the S&P 500. And if you've got a fund that beats the S&P 500, i.e., it does better in that

year than the S&P 500 did. It's unlikely to do the same the following year, and so a lot of these phones are trying to quote beat the market. But as Warren Buffett and a lot of these other people say, you cannot beat the market. So let's just invest in the market directly. Just put your money in an index fund and don't think too hard about it. Every single person I know who has invested by picking stocks has lost money, and every single person I know who has invested by just investing in an index fund has made money over time. The next question that this raises is, okay, cool, I want to invest in a stock market index fund. How the hell do I do that? Do I just go on sp500.com/buy and buy some index funds? Again, it's not quite how it works. You need a bit of a middleman, and that's where these kind of online platforms come in. Now, this is going to vary depending on whatever country you're in. So if you want to find a

stocks and shares investment platform in your country then just Google that. In the UK, for example, there are loads. The ones that I personally use are Charles Stanley Direct because that's the first one I started using in 2015. I also use Vanguard. Vanguard is super big and super legit. You can check it out. And the app that I use personally for investing in individual stocks these days is Trading 212. And in fact, incidentally, this video is now sponsored by Trading 212. This is kind of fun. As you can tell, I'm recording on a different day. Anyway, if you want to get started with investing, Trading 212 genuinely is the app that I use. It's the best way to get started. You can trade stocks and shares. You can also open an Isa, an individual savings account if you're in the UK. One of the cool things about Trading 212 is you can practice investing with practice money. So everything about the markets is identical. It's just that you're investing fake money rather than real money. And if you're uncomfortable

investing real money for now. This is a great way to become more familiar with the concept of investing. And then, once you're ready to invest with real money, you can just switch using a simple button on the app. And you can deposit money through Apple Pay up to two thousand pounds. And then you can use bank transfer subsequently. And the other cool thing about Trading 212 is they've got this really cool pies feature where basically you can look on the app and you can see other investment pies that other people have created. So you'll have these like Finance Pros that are creating their custom pies. And you'll see that they've allocated 10% to the S&P or 20% to the FTSE 100 or this percent to Apple or Tesla or Microsoft or whatever. And then you can see the performance of that specific pie over time. And then what you can do, if you really want to, is you can copy and paste someone's pie that they have built into your own investing account. And now you can automatically with a single click invest.

let's say 100 pounds into that pie, and so that 100 pounds will then be split amongst the various allocations that the person has decided to do in the pie. And that's great. Like obviously, I'd still recommend investing in some broad stock market index fund like the S&P 500, even though I don't give financial advice. Anyway, if you fancy giving a go, it's commission-free. It's completely free to sign up. You don't have to pay anything. You can go to trading212. It's available on the App Store on iOS and on Android. And if you use the coupon code Ali Ali when you sign up, that will give you a free share up to the value of 100 pounds. So you can get completely free money by just signing up for trading 212. Check it out with a link in the video description or search trading212 on any of the app stores. But thank you so much trading 212 for sponsoring this video. Part three common fears, concerns, and questions about investing. So if you're

broadly, very unlikely to lose money because Vanguard collapsed overnight, but you might lose money if the value of your investments goes down. And this is where people get really, really worried because they always think, Ah, you know, if I invested my hard-earned cash into these stocks and shares, what if it goes to zero? What if I lose my money? Now, this is a common fear. And certainly, let's say you invested a thousand dollars into the S&P 500 just before the financial crash in 2008. And then the markets crashed by, I don't know, 60% or whatever it was. And so now your thousand dollars is worth like 400. I know you're thinking, Oh my God, like I can't believe I've lost 60% of my money. Now, if at that point you sell, now you have realized the loss. Now you've literally lost money because you bought the thing for a thousand and you sold it for 400. But if you just held on, then the market recovered over time. And by 2012, it was at the same levels and

then it was just going up and up and up. So even if you had invested lots of money just before the 2008 financial crisis, if you had just stuck to your guns and left that money in there, you'd be have you'd have doubled or tripled or something your money by now. Because overall, the stock market broadly goes up over a long enough time Horizon. It's the same with house prices. You can buy a house, and if you try and sell it next week, then maybe the price will have gone down. But if you try and sell it 20 years from now, chances are, unless your country has been destroyed, the price will have gone up. And the longer you can leave your money in these index funds or whatever, the more it compounds over time. And as Einstein is famously put reported to have said, compound interest is the eighth wonder of the world. What are the chances that all 500 of the biggest companies in the US suddenly are going to drop to zero value overnight? Basically zero percent, I think. If all

500 of the biggest companies in the US all have their value dropped to zero. I'm we're going to have bigger problems in the world than the value of my stock market portfolio. And the reason why I think it's reasonable to make the bet that over time the stock market goes up is because every day thousands of people are going to work in each of these companies. Every single day value is being created by the employees at Apple. They're researching new technology, they're building new stuff, they're adding an extra camera or an extra lens to the iPhone. And all of that means that because these people are putting in the input of human labor, you would expect the value of the company to rise with time because they're making more and more cool stuff. And because people are going to want to continue to buy that more and more of that cool stuff. Now another question people sometimes have is how much money do I need to get started. Do I need to be like super rich to start investing and the answer is no again it depends on which platform.

you're using, but for example, I'm trading 212 or Vanguard. And Vanguard, I think you just need 100 pounds to invest. Trading 212, I think you can start with like 5. Again, this is just massively varies depending on your country. So, do some research and figure out what are the most reputable and legit platforms in your country, and then you can invest based on that. Now, there's two other categories of stuff that I invest in. I invest in real estate, so I've got a few properties in the portfolio. We're not going to talk about that because I've done a video about that over there buying versus renting. And that's usually outside the range for most people until you've already made a lot of money to be able to afford a deposit on a house and get a mortgage. And I also invest some amount of money in crypto, yep. And as we can see here, the total value of my crypto portfolio is 200,000, but I have actually lost 65,000. So, I've put in 265k.

into crypto and currently it's worth 200k. What can you do? I'm hoping the price rises with time. So generally, when it comes to recommending investing in crypto, people often ask about this. I would say if you want to take the gamble, fine, but make sure the only money you're putting into your crypto account is money that you can 100% afford to lose. Don't try and think of investing in general or crypto in particular as a get-rich-quick scheme. But generally, if you want to invest your money in stocks and shares, as Warren Buffett says, and as I do, and as I generally recommend, even though I'm not a financial advisor, not financial advice, etc., it's pretty reasonable to put that money in a stock market index fund like the S&P 500, for example. By the way, if you're enjoying this video so far, I'd love to hear in the comments what's been your biggest concern about getting started with investing. What is the thing that's holding you back? Part 4: Fast Lane Investing - The alternative approach to

Building Wealth. So far, we've talked about what some people would somewhat disparagingly call the slow lane approach to building wealth. It's like the slow lane, and there's the fast lane. Now, this is terminology from MJ DeMarco's book The Millionaire Fastlane. It's actually a really good book, but the basic idea of slow lane investing is that, Hey, I've got some money. I'm gonna do my day job. I'm gonna save up 10% of my paycheck, and every month I'm gonna put 10% into my savings account, and then I'm going to invest that money in the S&P 500. And then 50 years from now, by the time I'm 65, that money will have compounded, and then I'll be a millionaire. This is a very, very slow form of investing. It's a very slow way to build wealth, and certainly it's fine to invest in stock market index funds. I do that as well, but there is another approach to investing, and it's worth talking about that here.

because when we hear investing, a lot of us just default to thinking, oh, I guess I should buy stocks and shares, or I guess I need to buy a house. But if we really think about it, what is the point of investing money? The point of investing money is for your existing money to make more money further down the line. That's all the point is. The point is not to invest in stocks and shares. Stocks and shares are a vehicle by which you can turn your money into more money further down the line. But when it comes to Fast Lane investing, Fast Lane investing is basically that instead of investing in someone else's business, i.e., Apple or Amazon or Google or whatever, you're investing instead in yourself and in your own business. The S&P 500 goes up by seven percent each year, again on average. So if I put a thousand dollars into the S&P 500, it would be worth, on average, one thousand and seventy dollars twelve months from now. And so the question becomes, can I do something better with

that thousand dollars to make more than seventy dollars in the next 12 months, and generally the answer is hell yes. There are kind of two things I could invest in. I could invest in my own ability to make money. So, for example, let's say I'm a healthcare assistant in a hospital, and I can take a course for a hundred pounds. And that course gives me the ability to become a phlebotomist, someone who takes blood. And let's say I'm making 15 pounds an hour as a healthcare assistant, but I could be making 25 pounds an hour as a phlebotomist. Now, all of a sudden, I've paid 100 pounds. I've invested 100 pounds into my own skills, but I've been able to increase my earning capacity by nearly 2X. And therefore, within four hours of working as a phlebotomist, I will have paid off my hundred pound investment. And now if I work as a phlebotomist instead of a healthcare assistant, I'm now

earning more than 10 pounds an hour. And so, every 10 hours of the work that I do, I'll be earning that hundred pounds back. And so, my return on this hundred pounds is way, way, way higher than just seven percent because I fundamentally increased my own value to the market. I've fundamentally increased my own ability to make money. This is why investing in your own education is generally a very reasonable thing to do. Yes, you can find out lots of stuff on YouTube, and I'm always in favor of like, hey, if you're broke, don't buy fancy courses, don't take out loans to buy courses, find free information on the internet. But I've got so many friends who have an extra few thousand pounds, and they put it in the S&P 500 because they're hoping it'll grow over the next 50 years, rather than just spending some money on a weekend course on whatever skill they want to improve, and then they can use that skill to literally make way, way more money than they would by just sticking in the S&P 500. So, that's kind

of one way of Fast Lane investing you invest in your own ability to make money. But the other way of Fast Lane investing is by investing in your own business. Obviously, this only applies if you have a business want to start a business. But generally, the way to get rich quickly, quickly as in the next 10 years rather than the next 70 years, is to build your own business, to own your own business, and to increase the value of that business rather than giving your money to Apple or to Tesla. So, for example, if I wanted to, I could start my own coffee shop or my own online business or my own YouTube channel, which is a business. If I wanted to, I could start my own web design agency or social media marketing agency. If I wanted to, I could learn how to code, and I could build software, and I could turn it into an app. I back myself to be able to make a business and teach myself the basics of how to run that business and make that business more valuable in terms of return percentage.

then the seven percent I would get in the S P 500. And when I interviewed Alex for Mosey who's like a 200 million dollar entrepreneur, he call he kind of calls it in investing in the S P versus investing in the sne. It's a whole S P 500 versus SME 500, but like you will get a significantly higher return investing in your own ability to make make money then you will in any any market. And his advice as well is that you should invest in the sne, you should invest in yourself, invest in your own skills, invest in your own ability to make money, invest in your own business because the Returns on that are way more likely to be ridiculously higher than just that crappy seven percent that you get by investing in the S P 500. So if for example you are interested in investing in your own education and you want to start a YouTube channel and really take it seriously and treat it like a business, you might like to check out my own course part-time YouTuber Academy it's

great people love it. It's good vibes that'll be linked down below. And that course is basically about teaching you the things you need to know to systemize and scale a YouTube channel. If you want to treat it like a business, it's not a course for people who want to do it as a hobby. But if like me, you want to turn your channel into a business and make money that way, that's a course that might help you. But of course, everything is available on YouTube for free as well. So if you're broke or if you have loads of time and not much money, then of course you can find all this information for free on the internet. Anyway, I hope you found this video useful. If you're interested in learning more about this fast lane investing approach to Building Wealth, you should check out this video here, which is my book review of The Millionaire Fastlane by MJ DeMarco, which is the best book I've ever read on how to make money in a quick fashion. Quick meaning in the next 10 years.

rather than the next 60 years. So check out that video over there. Thank you so much for watching, and I'll see you hopefully in the next video.

How to Invest for Beginners (2024)

Check out my New York Times bestselling book Feel-Good Productivity! 📚

https://go.feelgoodproductivity.com/ytbanner

Hey, I'm Ali, a doctor turned entrepreneur, and the world’s most followed productivity expert 😜 

On this channel, we explore evidence-based strategies and tools that can help us be more productive, and build a life that we love. 

If that sounds interesting, consider subscribing! See you in the next video x

Ali Abdaal

The Ultimate Guide to Investing For Beginners

Investing is crucial for money to grow and combat the effects of inflation.

The philosophy behind investing is buying something that will make you more money over time, either through rental income or an increase in value.

There are various asset classes to consider for investment, including stocks, shares, real estate, bonds, and alternative assets like crypto and fine art.

The Basics of Investing in Stocks and Shares

Investing in stocks and shares is a more accessible and less risky option for the average person compared to investing in real estate or cryptocurrency.

When investing in stocks, you are buying a percentage ownership in a company and can make money through the potential increase in stock price and through dividends.

Instead of trying to pick and choose individual stocks, beginners are advised to consider investing in an index fund to gain a stake in a wide range of companies.

The Benefits of Investing in an Index Fund

Financial professionals often struggle to predict stock performance, so the alternative for the average investor is to invest in an index fund.

An index fund is a basket of stocks that tracks a specific stock market index, such as the well-known S&P 500.

Investing in an index fund allows normal retail investors to have a diversified portfolio across hundreds of companies, without the need to try to outsmart the market.

Investing in US Companies: Why Choose an Index Fund

Investing in a diverse range of top 500 US companies is a low-effort strategy, as it is difficult to beat the market by picking stocks individually.

Numerous studies and even Warren Buffett have shown that very few funds outperform the S&P 500, making it a reliable investment choice.

To invest in a stock market index fund, one can use online investment platforms like Charles Stanley Direct, Vanguard, or Trading 212, which offer the opportunity to practice investing with fake money before using real money, and also provide a feature to replicate and invest in other people's custom investment portfolios with a single click.

Trading 212 offers commission-free sign-ups with a chance to receive a free share up to the value of 100 pounds using the coupon code Ali Ali.

The fear of losing money in investments is common, but historical data shows that the stock market and house prices generally increase over the long term, allowing investments to compound over time.

Starting to invest does not require being super rich, and the amount of money needed depends on the chosen platform.

Diverse Investment Strategies: Stocks, Real Estate, and Crypto

Different platforms like Trading 212 and Vanguard offer varying investment amounts.

The speaker invests in real estate and has experienced both gains and losses in crypto.

They recommend investing in the stock market, particularly in an index fund like the S&P 500.

In addition to traditional investing, the speaker discusses the concept of "Fast Lane investing," which involves investing in oneself and their own business for wealth building.

Investing in Your Own Ability to Make Money

Investing in education and skill development can significantly increase earning potential, making it a reasonable investment.

This type of "Fast Lane" investing offers a way to make way more money than traditional long-term investments.

Another approach to "Fast Lane" investing is to invest in starting and growing your own business, aiming to increase its value in a shorter time frame compared to investing in big companies like Apple or Tesla.

Investing in your own skills and business is more likely to generate higher returns than investing in the S P 500.

Entrepreneur Alex emphasizes the importance of focusing on your ability to make money, rather than relying on the market.

The recommendation to treat your ventures, like starting a YouTube channel, as a business and the option of free resources highlights the potential for self-investment.