Why most rich people stay poor (and how to avoid it)

Did you ever ask yourself how to invest money? Are you a Young Professional and wonder how you should save and invest your money? Are you not sure if the stock market is worth it or if you should just save the money? In this video I give you an introduction into investing. I cover the investing 101, talking about why it is so important to save and invest and what my first investments were. I discuss common stock investing strategies such as buy & hold, market portfolio theory and a simple ETF market portfolio consisting of 70% MSCI World and 30% MSCI Emerging Markets. To get started, Exchange Traded Funds (ETF) are a very suitable financial instrument to use. I am also talking about common investing mistakes that Young Professionals make. This includes falling for the trap of lifestyle inflation, as well as the phenomenon of high income, low net worth. In the video, I explain why net worth is the most important metric to track in the personal finance sphere and how you can measure your net worth. I am discussing the most common financial mistakes of people in their 20s and 30s. You will also learn why it is important to start early when investing. Learn how to invest in stocks and other personal finance basics, especially relevant for Young Professional investment.

Disclaimer: I am not a finance professional and do not give investment advice. Investing can be risky and you might lose your money. Please do your own research before buying any financial product or conduct other investments.

YOUNG PROFESSIONAL INVESTMENT - How to invest your money to increase your net worth

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# BOOK RECOMMENDATIONS*
The Hard Thing About Hard Things - Ben Horrowitz
Extreme Ownership: How US Navy Seals Lead and Win - Jocko Willink
The McKinsey Way - Ethan Rasiel
Influence: The Psychology of Persuasion - Robert Cialdini
Incerto: Fooled by Randomness, The Black Swan etc. - Nassim Taleb
How a Diet can be a Game Changer in Life - Marie Mirrlees

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# SOCIAL MEDIA

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All views expressed on this channel are private opinions of this channel's creator Heinrich. This is NOT an official channel of any consulting firm.

[JustAGuyAllDayAnyDay]

No dislikes! This shows how valuable and sincere you are to us 😊 keep it up pls. I love it

[FirmLearning]

Start investing in ETFs via these platforms:
You receive a free stock valued up to 1, 600 USD when joining WeBull via this link.

[MatthewKhoory]

Great video thanks. You forget to mention property. With interest rates so low, a good way to build net worth is buy owning your property rather than renting as soon as possible.

[Gorlenius]

Thanks for this video! Completely underestimated the concept of Net Worth. Highly informative.

[leokal]

Hello Heinrich, well made video! I really appreciate your honest and direct content.
However I think you made a very common mistake at around 10:30. Volatility of assets has close to Nothing to do with risk.
Only if you are dependent on the Performance of an asset in a very strict time period volatility is in correlation with risk

[arihantjain]

Thank you Heinrich for another very valuable lesson on personal finance. I think with personal finance the biggest challenge I face while investing in stock is first lack of Patience and secondly trusting the advice of friends and colleagues and investing with proper due diligence I fully agree this is great tool and in stock I think its a balanced portfolio and some market knowledge can help you with large net worth in long teem..thanks again for your guidance

[yungxwavy]

Thank you from US, this is just the video I was looking for🙌

[paperlanes]

Your videos are very useful...this video is golden 🏅

[peseweng]

Hey Heinrich, just 2 quick questions: - Why do you think the split 70/30 is good, why not 50/50 or 90/10 .. are there any academic research why 70/30 is recommended?
- Is there THE Msci World ETF or are there hundreds of MSCI ETFs which are all different in performance? Or is an MSCI World ETD by definition always the same indice?

Best regards,

[toluolukayode]

Watching your video makes me miss my time studying in Goettingen and doing internship in Monheim (near Koln). Very informative video.

[mcdlr]

Have to increase my knowledge on investments then! Thanks Heinrich!

[oz]

Hope you are well. Any book recommendations for starting to invest in stocks or ETFs in general?

[parisprasinos]

Hello from my side
I wasn't able to find the exact ETF do you by any change have the ISIN?

thanks a lot

[TheVincedagreat]

Hi Heinrich, what is your experience with stock-picking? The MBB consultants that I've met in my life seemed to have been very savvy in getting a sense of companies' income statements and operations, and combined with my balance sheet and valuation knowhow as a banker, we were able to find some solid winners. I would definitely be all ears if you decide to make content just dissecting novel and interesting business models and ideas like a consultant, and I would argue it would make for pretty good investment education as well.

[huskidusk]

Most important thing to increase your wealth is to increase cash in and decrease cash out.
Investing can therefore also be reducing cost. If you live in a villa you can change the way h.you heat your house and save money.
Getting your eyes lasered can save you tons of money on glasses and contact lenses over time.

Don't overlook possibilities to save money.

Stocks are good but consider both approaches.

[tilpommer]

Hey Heinrich, this is Til fromm HHC! I've got another question :)
Would you recommend to start investing as a student? Or is it not really worth it because the amount is not that significant compared to investing when working fulltime.

[RedDevilz]

Hi Heinrich, thanks for sharing your experiences! I heard that firms like the MBBs, doesn't allow investing of stocks as they're often working with sensitive information with public companies. Was this the case when you're in one of the MBBs? I suppose this rule doesn't affect ETFs, but other than that, what would be alternatives to stocks?

[monaa]

Hi Heinrich! Really interesting video as usual! I mostly save but I really want to start investing. The thing is, I don't want to buy stocks if I know it will have unethical effects in our world. In case you want to make more videos on the subject, is it possible to talk more about the sustainable / socially responsible investment possibilities out there?

[thierryjunior]

Cool Heini. Weiter so. Grüße aus Beckum. 😛

[chrisneville]

Excellent video - the tips were spot on