Invest Like a PRO!

Do you want to know what investment ideas and investment systems look like outside of Iran? 

The book “Invest like a professional!” The work of Jess McCam is the founder of the famous website YouNeedABudget.com.

In this book, the author discusses investment strategies in accordance with US law.

For example, a part of the book states:

Unless you’re Jay Leno, a car is not an investment. However, if you start following some sound investing principles, you’ll be paying cash for cars for the rest of your life.

(I’ll mention some terms in here, like time horizon and return on investment, that we’ll delve into later.) It goes like this: You purchase a clunker for $2,000. Spend $100 on repairs each month (on average), and “invest” a $200 car payment that you make to yourself.

Since clunkers don’t really depreciate, at the end of two years, you trade in your clunker for $2,000 and add the $4,800 you saved, and trade up to a $6,800 vehicle.

You’re now driving a $6,800 vehicle. You spend $70 on repairs each month (on average), and “invest” a $230 car payment ($200 you were already paying, plus the $30 of repairs you don’t have to make because your car is more reliable) that you make to yourself.

At the end of two years, you trade in your car for $6,000 and add the $5,520 you saved, and trade up to a $11,520 vehicle.

Things are looking pretty good. Notice that I haven’t mentioned an investing time horizon, or a return on investment. The reason being that since you were only saving that money for two years, investing it probably wouldn’t have been the wisest move.

BUT, now you have a five-year horizon because you have a pretty nice, reliable car to drive. You end up with $50 of car repairs on average each month, and you invest the $250 exactly the way I teach in this course (you take into account your time horizon, you diversify, etc.).

Where did the $250 come from? You’re saving $50 per month in car repairs, and funneling that money over to your car investment.

So how does this shake out? At the end of five years, you trade in your vehicle for $10,000 (there was some depreciation), and add the $17,400 invested, and trade up to a $27,000 vehicle.