How Investing Works

[@MeaningfulMoney]

What do you think of this video? Let me know below and I will try to answer your questions. Or just let me know if you find this type of content useful. I'd love to make more of these if you find them valuable. I did a video on risk a little while ago, which you might find useful: kzbin.info/www/bejne/gniqk6yonZd7p7c.

[@mrboohoo6942]

Great content🙌

[@neilcole3406]

Wish you was about when l was younger, could of done with your advice then, no such thing as internet you guys are lucky to have this information now!

[@MeaningfulMoney]

It is an incredible time to be alive, Neil, for sure!

[@hollym6381]

Hi , Please can you explain bonds more and what risks they have , Thanks

[@stuartogden1660]

Thanks again Pete. I'm pretty knowledgeable re finance (pensions actuary) but it's always great to be reminded of the basics to be honest. We all forget. You present it all in such a wonderful way too. Top man

[@MeaningfulMoney]

Very kind, Stuart! 👊🏻

[@stumccloy]

Absolutely perfect. I will be sharing this with firiends and family as I cant explain it as eloquently as you Pete. Thanks.

[@MeaningfulMoney]

Glad it was helpful, Stu!

[@maltesetony9030]

High quality whistle-stop guide from the man who knows his onions (as they say).

[@MeaningfulMoney]

Thanks Tony - really appreciate your support, man! 👊🏻

[@riddlergorshin]

Superb video Pete. Keep spreading the message.

[@MeaningfulMoney]

Thank you Paul - I will, and thank you being here 🙏🏻👊🏻👍🏻

[@mylesmears6558]

Another great video, you must spend a lot of time putting these together and it really is appreciated. I think one of the most valuable points you make in your series is the prompt to review with an actual plan in mind. As a result I've made a few fairly modest increases to some regular investments and had a rethink about where some money should go. The difference that has made to the projections is quite surprising. I know it's common sense that putting more in should mean getting more back, but it's how much that increases with a relatively small (and affordable) change. Things which had been drifting along (quite nicely) now suddenly look much more promising. So a big thank you for the prompt - I feel I should print a t-shirt with "I'm Beng Intentional" on it.

[@everyquid8881]

I love how simple you keep it! I have a lot to learn from you and so do so many others!

[@MeaningfulMoney]

Thank you! It’s so important to cut through the unnecessary stuff and get straight to the things that truly matters. I’m glad it is helpful!

[@eggbert6900]

Love how you summed up what investing is - really clear definition. Know you know this Pete, but we also need cash in the bank to cover emergencies as well, before we start investing. Usually at least 6 months expenditure.

[@MeaningfulMoney]

Absolutely right. That’s why I said you shouldn’t invest money you’re going to need in the short term. So important to have a cash buffer behind you 👍🏻

[@sgist7824]

Dave, is that you?

[@eggbert6900]

@@sgist7824 Mate! How are you doing?

[@colinshurey976]

I always enjoy your presentations from a Pom living down under

[@MeaningfulMoney]

Cheers, Colin - glad they’re enjoyable for you.

[@SoundKing]

You can also save. But investing is better than saving...

[@pqoeuehsnskduxueownwudispwsn]

Great video as always thanks Pete 🙂

[@MeaningfulMoney]

Thank you!🙏🏻

[@johndriver181]

Well said Pete. Love it. 🥸

[@MeaningfulMoney]

Thanks John!

[@Throwaway_4928]

I’m always scared to invest because I thought you can get negative lost and then you have to repay extra

[@minimad8793]

In your years of investing, do you ever get the feeling that your investments aren't moving at the pace you wish them to be. I think with the cost of living we are currently in the pleasure of, it does feel like the money mountain is sinking below the waves, only rising every now and then to say hi. I do hope in the coming years, the fruits of labour will show there kindness on all who are investing. Just watching this video again for some inspiration and virtual guidance :)

[@TheProphetXI]

Great video. New to investing this year. Having riddled my early 20s with silly debt at 27 I now have a fair bit more free cash and it feels wonderful to put my money to work, equally great to have my kids set up with junior S&S isa each so they should have a nice little pot when they’re 18 to kick start their adult lives. Gained a subscription the delivery was excellent 👌

[@MeaningfulMoney]

Thank you! Great to have you with us. And we’ll done for taking action - we all get there at different times and at 27 there’s LOTS of time to become wealthy in whatever way you define that! Good luck and thanks again for being here! 🙏🏻

[@shimsteriom4191]

Thanks Pete 👍

[@MeaningfulMoney]

Thank you!

[@sarahb2255]

Thanks for the video. You mentioned bonds. Do you have a video on bonds and especially how they are affected by inflation? I really struggle to understand bonds but am interested in them as I perceive them as a middle road between cash and shares. But I could be mistaken...

[@MeaningfulMoney]

You’re not far wrong, but it I’d a bit more complicated than that, as you might expect. I don’t have anything specific on this subject I don’t think, but check out the channels of James Shack and Pensioncraft - both brilliant.

[@niterider1969]

Hello, started to subscribe to your channel recently and have found your videos helpful, interesting and informative. Having just payed off my mortgage and in the process have a floating money pot of £20k to invest which areas do you think I should be focusing on considering the challenging economy at the moment?

[@MeaningfulMoney]

Hi there, and thanks for being here and watching the videos! Much as I’d love to, I can’t offer any suggestions about what you should do. I just can’t, without potentially getting into a whole load of trouble! That said, my suggestion is never to focus on any areas in isolation, but always to go for a multi-asset approach, investing in ALL kinds of assets.

[@niterider1969]

@@MeaningfulMoney I completely understand. Thank you.

[@AlCliffe83]

Hi Pete, long time watcher, first time commenter (your videos have turned my financial life around over the years, from heavily in debt being chased to debt free and investing. So thank you). My question is, in this video you mention that exchanging cash for assets (shares) is buying and owning small pieces of companies, investing 101. But how does this translate to index funds, as far as I understand it when cash is exchanged for units in an index fund (i.e an accumulation index fund), the buyer has only purchased and owns units in the index fund company (fidelity, vanguard etc) and not with the companies within the index fund i.e S&P 500 etc, so would this mean that any price fluctuations of up/down to buy the units is only dictated by supply and demand and not sentiment? Or is my understanding a little wrong as I can't find any reliable info that compares buying shares and buying units in Index funds. Thank you again for another great video, please don't stop what you're doing.

[@MeaningfulMoney]

Cheers, Shutterboy - I’m so glad to hear that the videos have been useful! What an index fund does is buy the shares for you. So the fund holds the shares and you hold share/units in the fund. This way you can pool your money with all the other investors in the fund and spread your money more widely as a result, reducing risk. So the returns of the fund are driven by the same mechanisms as holding shares directly. The only exception to this is with Investment Trusts, but that’s a whole other issue… Hope that helps!

[@AlCliffe83]

@@MeaningfulMoney yeah that really helps, thank you. Due to the lovely KZbin algorithm I was shown this video before I then found your recent 'funds types explained' video which I'm now watching and this helps explain your reply in a bit more detail so thank you. I could understand the buying and hold individual shares ok, it was harder to understand how index funds work as I've been unable to find anyone to visualise it. Thank you again for your reply.

[@mcmoremak6190]

😅Nicely simplified

[@MeaningfulMoney]

Thank you! 👍🏻

[@adrianhughes7515]

Great video as always. What percentage of savings should people "invest" as a rule? I was told exposure of more than 50% of savings was bad - and that exposure included s+s ISAs. If someone has £50,000 saved, and £25,000 in a S+S ISA, would the general advice be to stop investing in the ISA?

[@MeaningfulMoney]

I would dispute the 50% of savings rule you mention. Personally I think that you ONLY keep in cash your emergency fund (3-6 months of monthly expenses) and any money you need in the next two years, maybe for a holiday or an imminent house deposit, say. After that, everything should be invested. Investing isn’t a red-or-black, all or nothing kind of risk. Losing everything when investing is next to impossible, IF you diversify properly and hold your nerve. So I think it’s easier to invest more if one understands it better. Hope that helps - thanks for watching and for the kind words!

[@andys.channel]

I was always told to save save save for a rainy day worst move I've ever done my money earns no intrest and is loosing value

[@MeaningfulMoney]

And that’s why it needs to be invested - which comes with some risks itself, but totally worth it!

[@tyson.13]

If you no all this way are you on KZbin ther must be alot of money ther?

[@markfindlay8636]

Can l get that bundle of notes in your hand? I will invest it for you, trust me I'm a financial spender! 😇

[@MeaningfulMoney]

Ha! They’re prop notes so wouldn’t buy you very much!