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GET RICHER

SLEEPING

Money & Investing 101

TABLE OF CONTENTS

What is the Minority Mindset

3

FOLLOW US

4

Disclaimer

5

Money Explained

6

Why Passive Investments?

7

Majority Myth #1

8

How Do You Grow Your Money?

9

What The Majority Of People Do

10

What The Minority Of People Do

11

Majority Myth #2

12

Stock Market Investing: What is it?

13

Stock Market Investing: How Do You Make Money?

14

Stocks: Getting Started

15

Real Estate Investing: What Is It?

16

Real Estate Investing: How Do You Make Money?

17

How Do You Get Started?

18

Protect Yourself

19

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What is the Minority Mindset

The Minority Mindset has nothing to do with the way you look, your ethnicity, or your skin color. It’s a mindset. It’s the mindset to think different than the majority of people and follow your passions and dreams. It’s the mindset to believe in yourself even when no one else does. And it’s the mindset to defy all odds. The minority of people who break away from the “normal” path are often ridiculed and made fun of for being different. We embrace that uniqueness. No one is remembered for being the most average or for being the person that just fit in the most. The people that do great things are the ones who think different, break away from conventions, and follow their passions. That’s the Minority Mindset.

#ThinkMinority Some of the links included are from our affiliate partners meaning we will get compensated if you make a purchase. There is no additional cost to you. Copyright © Minority Mindset, LLC | www.TheMinorityMindset.com

3

FOLLOW US

FACEBOOK

MINORITY MINDSET HOME

MINORITY MINDSET TV

INSTAGRAM

Some of the links included are from our affiliate partners meaning we will get compensated if you make a purchase. There is no additional cost to you. Copyright © Minority Mindset, LLC | www.TheMinorityMindset.com

4

Disclaimer This eBook is to provide our general business opinions. Nothing in this eBook is intended to serve as legal or financial advice. Be sure to do your own research and consult with a licensed attorney to understand the local rules and regulations that govern investing in your area. And speak to a licensed accountant to come up with the best financial strategy for you. Please understand that we are sharing our opinions and our experiences. We cannot guarantee your success or any result. Investing has inherent risks. You may lose money. So please do your own due diligence. Some of the links included in this eBook are from our affiliate partners meaning we will get compensated if you make a purchase. There is no additional cost to you. We test and review every product that we endorse, however, we cannot be held responsible for actions that these companies take. We care about you which is why we believe in being 100% transparent with you.

Some of the links included are from our affiliate partners meaning we will get compensated if you make a purchase. There is no additional cost to you. Copyright © Minority Mindset, LLC | www.TheMinorityMindset.com

5

Our fiat-money is just paper. The reason your $100 bill can buy a pair of shoes is because we have artificially created value behind the $100 bill. And we, as a society, have accepted this value. The physical dollars we use are not backed by gold, silver, goats, or anything else. They are just pieces of paper.

Money Explained

Why do we have money?

To reward value. Many people get this confused. We are taught to believe that money exists to reward hard work. That’s false. Money doesn’t reward hard work, money rewards value. It takes hard work to create value, but money rewards the value you create, not the effort you put in. In this eBook, we will focus on creating passive income from investments.

Money is a tool. Money doesn’t make you a better person, it just amplifies who you are. Give a bad person money and they have a tool to do more bad. Give a good person money and they have a tool to do more good. That’s why we need more good people with money.

Some of the links included are from our affiliate partners meaning we will get compensated if you make a purchase. There is no additional cost to you. Copyright © Minority Mindset, LLC | www.TheMinorityMindset.com

6

?

Why Passive Investments

We are all human and we only have 24 hours in a day. Some of our time is spent sleeping, working out, eating, relaxing, and hanging out with friends. It’s impossible for us to work non-stop, 7 days a week. Sure, we can sacrifice sleep and leisure time, but there’s a limit to how many hours we can exchange for dollars. Your money, on the other hand, doesn’t need a break. It can work 24-hours a day, 7 days a week. That’s why you want to put your dollars to work so your money can go out and bring you more dollars, every single day even when you aren’t physically working. That’s what passive investing is.

Let’s get into it.

Some of the links included are from our affiliate partners meaning we will get compensated if you make a purchase. There is no additional cost to you. Copyright © Minority Mindset, LLC | www.TheMinorityMindset.com

7

Majority Myth

#1

I need a lot of money to do this Wrong. You can start with under $100. Earl, a parking lot attendant, never made more than $12/hour. The most he made was $20,000 a year from his job. He started investing his money with just a few dollars and has turned his small investments into over $500,000!

It takes sacrifice, persistence, and consistency.

Read more about Earl here.

Some of the links included are from our affiliate partners meaning we will get compensated if you make a purchase. There is no additional cost to you. Copyright © Minority Mindset, LLC | www.TheMinorityMindset.com

8

How Do You Grow Your Money

?

By buying seeds. And no, we are not talking about sunflower seeds. We are talking about investment seeds. You do the work finding and buying the right seed. Then the seed will pay you every year regardless of whether or not you work.

Seeds are investments that grow and make you more money. As your seed grows, you will be able to live off the fruits that are produced by the seed you invested in.

The most common examples of seeds are: Stocks, Real Estate, Bonds

Some of the links included are from our affiliate partners meaning we will get compensated if you make a purchase. There is no additional cost to you. Copyright © Minority Mindset, LLC | www.TheMinorityMindset.com

9

EXAMPLE

#1

What The Majority Of People Do

George wants to buy a new car. He goes to the dealer and sees a shiny new car on sale for $20,000. George has the money to buy it, but he chooses to finance it. As soon as he drives his shiny new car off the lot, the car loses 15% of its value, or $3,000. Every month, John pays $400 to drive the car and he has to pay for the car’s maintenance as the value of the car keeps going down. Five years later, George finally pays off the car and sells it for $10,000. The car ate his money.

Some of the links included are from our affiliate partners meaning we will get compensated if you make a purchase. There is no additional cost to you. Copyright © Minority Mindset, LLC | www.TheMinorityMindset.com

10

EXAMPLE

#2

What The Minority Of People Do

Nancy wants to buy the same new car. This time, she takes her $20,000 and buys seeds (more about what to buy coming soon) and she lets her money grow for a few years. Now Nancy takes the money she made from her seeds and buys the same car. Nancy has the car, the original $20,000, and her investment seed is still making her money every month.

Some of the links included are from our affiliate partners meaning we will get compensated if you make a purchase. There is no additional cost to you. Copyright © Minority Mindset, LLC | www.TheMinorityMindset.com

11

Majority Myth

#2

People don’t buy seeds because it’s a secret. Wrong. Many people understand that investing their money can earn them more money. The majority of people don’t do it because it requires two things: patience and delayed gratification. We live in a society where when the majority of people want something, they want it now. They aren’t willing to sacrifice what they have today for something better tomorrow. Don’t be the majority.

Need images/designs on this page to fill up space.

Some of the links included are from our affiliate partners meaning we will get compensated if you make a purchase. There is no additional cost to you. Copyright © Minority Mindset, LLC | www.TheMinorityMindset.com

12

Stock Market Investing What is it

There are two main ways companies raise money. They can get a loan (debt) or they can sell part of their business (equity). You, as an investor, can buy equity, or shares, of a company in the stock market and become an owner of the company.

When you buy one share of McDonalds, you become one of the owners of McDonalds. Obviously, you don’t get to tell McDonalds how to run their business with that small of ownership, but you get to share in the profits when McDonalds makes money. That also means you share in the losses if McDonalds loses money. So, if you invest in McDonalds and they file for bankruptcy, you would lose the money you invested. The stock market allows you to invest in publicly traded companies as opposed to privately traded companies. Generally, privately traded companies are smaller businesses. A private company can become a publically traded company by filling an IPO: Initial Public Offering. Every asset class, including the stock market, has cycles. There are times when the market goes up; called a bullish market. And there are times when the market goes down; called a bearish market. You want to buy when people are fearful and stocks become cheap and you want to sell when people are greedy and stocks become expensive. As Warren Buffett says, “the stock market is a device for transferring money from the impatient to the patient”.

Open a FREE Stock Brokerage Account [Ally Invest]

Some of the links included are from our affiliate partners meaning we will get compensated if you make a purchase. There is no additional cost to you. Copyright © Minority Mindset, LLC | www.TheMinorityMindset.com

13

Stock Market Investing: How Do You Make Money 1

Appreciation

2

Dividends

You invest in and buy a company’s stock because you expect the company to become more valuable in the future. When a company makes more money, it should become more valuable, and as a company becomes more valuable its stock price should go up to reflect that new value [we say “should” because there are exceptions]. But, in its simplest terms, if you buy one share of a company at $100/share and it goes up to $200/share. You, as the owner, made $100 just by owning the stock! Companies want you to invest in them. And to incentivize investors, some companies pay regular cash bonuses as a way of sharing their profits with investors like you. These cash bonuses are called dividends.

In other words, a dividend is when a company pays you just for owning their stock. Think of it like a “thank you paycheck” – you don’t have to do anything except own the stock to get the dividend. Most dividends are paid quarterly, meaning every three months. The amount of money you will make will depend on the company and not all companies pay dividends. So, you will have to do some research before investing. [More on how to research stocks in the video series mentioned at the end of this eBook]

Le a r n m o r e a b o u t d i v i d e n d s h e r e : Some of the links included are from our affiliate partners meaning we will get compensated if you make a purchase. There is no additional cost to you. Copyright © Minority Mindset, LLC | www.TheMinorityMindset.com

14

Stocks: Getting Started

To invest in the stock market, you need to use a stock brokerage. There are many online brokers out there. We recommend Ally Invest. It’s free to create an account, they have an amazing research platform, and they have some of the lowest commissions out there. Once you create an account with Ally Invest, you just enter which company you want to invest in and how many shares you want to buy and you’re done. Again, you’re never guaranteed to make money when you invest, you may even lose money. So, make sure you do your own research. Sign up for a free Ally Invest account here so you can continue learning and start investing in seeds.

Some of the links included are from our affiliate partners meaning we will get compensated if you make a purchase. There is no additional cost to you. Copyright © Minority Mindset, LLC | www.TheMinorityMindset.com

15

Real Estate Investing: What Is It Everyone needs a place to live, companies need office space, parking lots need land, and stores need retail space. You can be the provider of this real estate in exchange for rent payments. You can buy, build, or rehabilitate property and then lease it out to people who want to use your property.

Some of the links included are from our affiliate partners meaning we will get compensated if you make a purchase. There is no additional cost to you. Copyright © Minority Mindset, LLC | www.TheMinorityMindset.com

16

Real Estate Investing: How Do You Make Money 1

Appreciation

2

Rental Income

You buy real estate with the expectation that the value of the property will go up. Remember the car example earlier? The values of most ‘things’ go down with time. With seeds, however, you buy them with the expectation of going up in value. According to the National Association of Realtors, the average home value increases by around 6% a year.

Rental income is like a stock dividend. Tenants pay you every month to live in or use your property. The amount of money you make is predictable and it’s something you can control. Of course, you can run into issues of tenants not paying you or tenants not taking care of your property. However, that’s why it’s important to be very cautious of the tenants you put in your property.

This may seem like a lot of work, however, you can hire a real estate property manager who will do all of the rental management for you. They will find you a tenant, qualify the tenant, collect rent, handle payment disputes, handle maintenance requests, and everything else in between. Not all management companies are made the same, so be sure to interview your management company thoroughly.

Some of the links included are from our affiliate partners meaning we will get compensated if you make a purchase. There is no additional cost to you. Copyright © Minority Mindset, LLC | www.TheMinorityMindset.com

17

You can buy a property with cash, get a loan (debt), or bring on investors (equity partners). Once you find a suitable deal, you must secure the capital to purchase and renovate (if necessary), and then you would purchase the property. Traditionally, real estate investing was reserved for people who had access to a lot of capital. But things have changed. With the digital revolution, you can start investing in real estate without having a ton of money. You can invest directly into real estate investments with real estate crowdfunding. Here’s how it works; first, a real estate investor or developer will create a proposal to invest in or build a property. Then, this real estate deal will get screened and if it meets the fund’s criteria it will get approved. And then you have the option to invest as little as $500 into a portfolio of actual real estate investments with Fundrise. The investors need funding to go through with the deal and you can profit on the deal by being an investor. When you invest, you get paid just like any other real estate investment. You can make money from your share of rental income, potential appreciation, and interest payments. And then when the property is sold, you will get your share of the profits as well. Of course, like with any other investment, you’re never guaranteed to make money. But, crowdfunding allows you to partner with experienced real estate investors. If you’re interested, you can learn more about real estate crowdfunding and start investing here.

Some of the links included are from our affiliate partners meaning we will get compensated if you make a purchase. There is no additional cost to you. Copyright © Minority Mindset, LLC | www.TheMinorityMindset.com

18

Protect Yourself If you’re doing your own real

estate deals, you should consider forming a legal entity, like an LLC, for your business. Even though real estate investing is meant to be a passive investment, it’s still a business. Again, you should consult an attorney in your area to know what’s best for you. But, there are a lot of legal and tax advantages of operating as a legally recognized business. You can learn more about what entity type is best for your business here.

Some of the links included are from our affiliate partners meaning we will get compensated if you make a purchase. There is no additional cost to you. Copyright © Minority Mindset, LLC | www.TheMinorityMindset.com

19

WATCH OUR VIDEO SERIES!

Are you looking for more in depth information on financial literacy and investing? Then our Financial Literacy Video Series is for you.

Our video series covers:

1

WHAT IS MONEY

2

STRATEGIES TO ALLOCATE YOUR MONEY

3

HOW TO SAVE YOUR MONEY

4

HOW TO INVEST YOUR MONEY

5

READING A COMPANY’S STOCK PROFILE

6

UNDERSTANDING MARKET CYCLES FOR INVESTING

7

HOW TO SPEND YOUR MONEY

8

AND HOW TO EARN MORE MONEY

WATCH OUR VIDEO SERIES HERE Some of the links included are from our affiliate partners meaning we will get compensated if you make a purchase. There is no additional cost to you. Copyright © Minority Mindset, LLC | www.TheMinorityMindset.com

20

FOLLOW US

FACEBOOK

MINORITY MINDSET HOME

MINORITY MINDSET TV

INSTAGRAM

Some of the links included are from our affiliate partners meaning we will get compensated if you make a purchase. There is no additional cost to you. Copyright © Minority Mindset, LLC | www.TheMinorityMindset.com

21

GET RICHER

SLEEPING

Money & Investing 101