Unlock your success in business and in Life!

Dan Lok

How To Get Started – 5 Tips On Investing For Beginners

Listen to the latest Dan Lok’s Podcasts

EPISODE 205

How To Get Started - 5 Tips On Investing For Beginners

Stop saving your money. Why? Because poor people focus on saving and rich people focus on investing.

This is how most people save. They don’t drink that Starbucks coffee in the morning. They don’t fly first class, they fly economy.

Well, here’s the thing: You’re not going to get rich by trying to save a few dollars here and there. You don’t have a savings problem, you have an income problem. If you want to earn a lot more money, you need to learn to invest so here are five quick tips.

The Simple Investment Rule

Say you don’t have a lot of cash coming in, and you want to have $2000 to $5000 a month in positive cash flow. You need to acquire quite a substantial amount of real estate in order to do that. A business that makes $3000 to $20,000 will get you to your goal faster.

So, my first recommendation is you build your business first. When you business throws out so much cash that you have reinvested a lot of profit into your business, then you take that extra money and put it into real estate. Then you wait.

Long term, if you buy right, you will become extremely wealthy.

The next tip is my simple investment rule. 100, 10, 3, 1. It means you look at 100 deals, 100 potential investments, and break it down into 10. From that 10, you will narrow it down to three that has got possibility and then you might do 1.

Every day, I turn down 99.9% of the investments that come across my desk. I look at hundreds and hundreds of investments and I do only a very selective few. Always remember investigate before you invest.

How To Get The Income To Invest

Now here’s what’s very, very interesting. I know a lot of people who do very well with investing and they don’t even have a scalable business. You can be very wealthy with a high income skill that makes you more than $10,000 a month, and you put it into high return investments.

A friend of mine who is a high end photographer makes six figure income a year, and he started investing in real estate 20 some odd years ago. Today he has a portfolio of about 250 units. It’s worth about $20  to $25 million dollars.

First, you’ve got to know what type of investor you are. Are you more for growth, are you more for capital gains, are you more for security, do you want dividends? All of that makes a difference.

I like control when it comes to investing so I prefer real estate over stocks. I can’t call a CEO and tell him where to invest money. That’s why I like businesses. I put money in businesses because I have a say over where the business could go. That’s why I like real estate because I have control for tax purposes. I have control over the cash flow and the appreciation.

So if you’re making less than $50,000 a year, save 10 percent of your income. If you’re making over $50,000 save 15 percent. If you’re doing $200,000 or more, save 25 percent. And if you’re doing half a million or more, save 35 percent. When you’re making 2 million or more, save 40 percent. And finally, if you’re making 5 million or more, you should be saving at least 50 percent for investments.

The rest you can spend on whatever you want. Reward yourself. But you need to increase your earning ability through a combination of your scalable business and your high income skills.

Transcript

Dan Lok: Welcome to another episode of Dan Lok show. Today we are in actually New York City, and I’m with John Henry. Now John not only is an entrepreneur, but also a real estate investor as well as owns a venture capital company.

John Henry: That’s right.

Dan Lok: Now before we even talk about John’s story, I want to talk a little bit about this space.

John Henry: Let’s talk about it.

Dan Lok: Let’s talk about this space. Like what makes this space, co-working space, so special?

John Henry: First things first, thank you for having me on.

Dan Lok: Welcome man, welcome.

John Henry: Appreciate you. And look, what makes this space special is this is the proof right here. Like you’re on a one day trip, you came, you interviewed with Faiza, this content, that content lined up. We connected and it’s central in the city, a lotta energy here, there’s six floors.

Dan Lok: You can feel the entrepreneurial spirit.

John Henry: That’s right.

Dan Lok: The minute you walk in you can feel the hustling.

Want more strategies to take your life to the next level - without all the fluff? Discover all of Dan’s best-kept secrets to success in life and business in his latest book Unlock It.

Click here for more details on the book and claim your limited time
FREE bonuses if you do decide to order.

Get Your Copy of Unlock It!

Coming Summer 2019.

  • TV Show: Hustle
  • Linkedin
  • Instagram
  • YouTube
  • Twitter

Join the Conversation

SHARE THE LOVE

Share on facebook
Facebook
Share on pinterest
Pinterest
Share on twitter
Twitter
Share on linkedin
LinkedIn

Dan Lok: Welcome to another episode of Dan Lok show. Today we are in actually New York City, and I’m with John Henry. Now John not only is an entrepreneur, but also a real estate investor as well as owns a venture capital company.

John Henry: That’s right.

Dan Lok: Now before we even talk about John’s story, I want to talk a little bit about this space.

John Henry: Let’s talk about it.

Dan Lok: Let’s talk about this space. Like what makes this space, co-working space, so special?

John Henry: First things first, thank you for having me on.

Dan Lok: Welcome man, welcome.

John Henry: Appreciate you. And look, what makes this space special is this is the proof right here. Like you’re on a one day trip, you came, you interviewed with Faiza, this content, that content lined up. We connected and it’s central in the city, a lotta energy here, there’s six floors.

Dan Lok: You can feel the entrepreneurial spirit.

John Henry: That’s right.

Dan Lok: The minute you walk in you can feel the hustling.

John Henry: That’s right, and there’s a lot at WeWork’s, obviously, and this is … this, though, is billed as like the OG space, and there are a lot of veteran New York entrepreneurs here. There are several accelerators and several funds and stuff, and so yeah, I’m fortunate to be part of this community.
So we’re in Alley right now. Yeah, and that’s where we find ourselves.

Dan Lok: That’s awesome.

John Henry: Welcome to New York, man.

Dan Lok: Thank you, I love New York. The cold, it takes a couple of days to get used to. The minute I arrived, the airport, like wow! This is cold. I know New York, it’s cold. But this is cold!

John Henry: This is very cold.

Dan Lok: This is very cold. So John, take us back. How did you get into entrepreneurship?