Start investing in the share market today! | Freya Savage | Skillshare

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Start investing in the share market today!

teacher avatar Freya Savage, They don't teach you this shit in school

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Taught by industry leaders & working professionals
Topics include illustration, design, photography, and more

Watch this class and thousands more

Get unlimited access to every class
Taught by industry leaders & working professionals
Topics include illustration, design, photography, and more

Lessons in This Class

9 Lessons (48m)
    • 1. Intro

    • 2. 2. Investing vs Gambling

    • 3. 3. Why shares?

    • 4. 4. Other Assets Classes

    • 5. 5. Compound Interest

    • 6. 6. How we predict returns

    • 7. 7. Are you an active or passive investor

    • 8. 8. What investment platforms to use

    • 9. 9. Decrease risk

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About This Class

This program will teach you how to invest in the share-market in a simple way and reduce risk. I use data since the inception of the share-market and share the findings in strategies to increase effectiveness over the long-term. 

I will teach you how to invest in a way that supports your lifestyle. So it's life-giving, rather than life-taking!

Being emotionally tied to investments is common due to a poor understanding of the fundamentals, but not with my students!

We were not taught any of this at school yet it is so important for life.

My mission is to empower you to understand investments and how to implement practices in your life that are based on solid knowledge and understanding in a way that is simple and gives you more time to focus on you living your life rather than micro-managing and crossing your fingers.

Meet Your Teacher

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Freya Savage

They don't teach you this shit in school


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1. Intro: Hello, I'm really excited to bring you this masterclass. I Bergen it up into palatable pieces. And when I would love for you to take away from this program, is knowing how did we invest in a safe and an educated way in the share market? And to actually understand why it is that you're actually investing in the market. And if it's actually something that is going to support you or not support you. I want you to make educated investment decisions that are going to support your lifestyle rather than making investment decisions. Because think that's what you should do. I want you to understand it. I want you to then embody it, and I want you to be empowered in making decisions, not just now but throughout your future. I used to work in financial advice for 10 years now as investment analyst. And now what I do is I teach people how to manage your money and how to invest in a way that's simple, in a way that's effective in a way that works and in a way that is really, really supportive. So I hope that's what you get out of this program in these mini pieces. 2. 2. Investing vs Gambling: Okay, So I've got nothing fancy to share here, just my words. And that is enough because it really gets to be simple investing, it gets to be simple. We over-complicate things. And what I wanna talk about in this session is what actually investing ears. So the definition, all we investing isn't guaranteed return. How often do you see an investment if financial investment that has a guaranteed return, you don't, you know, we all know. Well maybe you sorry, no, but there is, you've heard of risk and reward before. The more risks, more and more reward, it doesn't work like that. It's not that simple. And there is a way that we can actually essentially reduced risks to almost 0 and get a high risk. And I want to teach you how you can actually do that. The first thing is to know that Jesus really investing and gambling. Gambling is when we are essentially working against averages. And we are taking a huge risk and we are betting on the future. Of course, in a way we're always betting going to have to be better. We're going to be betting on the future. We join our crystal, we don't know what's going to happen. But when we invest short-term, one particular asset class or one particular investment, and we take the bet, all that's gonna do really well in the future. That's going to become the next big, big thing. That to me is gambling and that is not the way I invest my money. And it's not the way I teach clients to invest their money into. If you do want to do that, I say you use five or 10 percent to do that. So then you can also make huge returns during that. But if you lose it, it's also okay. What I want you to do is I want you to secure your money and I wanted to work for you. I don't want you to think that investment is a way for you to get rich quick. I want you to focus on opening portholes for income to come in through, whatever it is that you love to do. And urban learn how to open doorways for money to come in that way, get reached that way, bring in huge amounts of wealth that way. And investing in financial markets is to essentially secure your money and to grow it slowly over time. You don't want to be taking a huge amount of risk with this, right? You worked hard for it or maybe you didn't work out. But you probably did the mindset for or you did something for it, right? We don't want to be putting that on the line. We want that to be slowly working for us and we want it to be essentially guaranteed. So gambling is when we are risking, and we're risking big. And when you're an active investor, active investor means you are actively buying and selling and you're trying to beat the market, you are trying to foresee what's going to happen next. That's me is gambling. I don't do that. I don't read the newspaper. I don't look at what's happening in the economy. I mean, sometimes I do because, and I'm interested in it, but not really, it's not necessary. And it actually derails a great investment strategy and a great investment implementation. So what I see right now happening is people having the stories that they can get rich quick investing in financial markets. This is very, very dangerous and I don't recommend it. I, Murray's people lose doing this. You know, the stories you hear there, one, that they're very rare. And in fact, 90% of people whose money investing in crypto and 80% of people lose money investing in the share market. I don't know what the percentage is in property, but I assume that's also very, very high. And it doesn't mean we should avoid those. What it means is we use the averages that tell us how we can essentially 99 percent guarantee that we get a return, which is what I'm going to teach you in this, in these master classes. So the first thing I want you to, I want you to consider and to embody is that you get rich from bringing income. Investment is there to grow your money over time and secure from inflation, which I'm going to speak about in the next session. Okay? I see them. 3. 3. Why shares?: All right, so why would we actually invest in shares and what makes share so special compared to other asset classes. So shares themselves, a very diversified shares, also called equities, also accompanies public companies. They essentially represent everything. They also resent represent property because some of these companies are invested in him property. You can even buy bones on the share market. You can buy cash funds on the share market. You can buy crypto funds on the share market. So really covers everything. But generally, the way that it's sectors ease in terms of countries. So depending on what your country is, you will have. So for me, I'm from Australia, so there's Australian shares, international shares. Emerging markets are normally, they're born and they normally put Asia in there as well. And they say excluded Australia. And these are, these are generally the four different countries that they're subjected into. And then inside of that, there's also sectors in terms of the actual that the focus of that organization, the sector that it's insert, resources, banking and tech, pharmaceutical, and the list goes on. So it's very diverse. So when you say investing in shares, it's not, yes, it's an asset class, but within that asset class is it essentially has all the other asset classes as well that are available to you. I love shares because they're easy to access their cheap. Right now. Based on the platforms that are available, the trading platforms, most countries you can trade for pretty much for free. It wasn't like that ten years ago. It normally it would cost you 20, $30 to do one trade. And if you want to do an international trade that was generally 70 or 80 dollars if you were trading, let's say if you're Australian and you wanted to trade on the US exchanges, then you would have to pay that much. But now we're in an amazing era where we can easily trade at a very, very low cost and like I said, sometimes essentially for free. So I love that It's very accessible. It's very cost-effective in terms of the transactions. You're able to diversify very well, very easily without having a huge amount of capital required to diversify. And I love that doesn't require any. And I love that you actually earn owner of the company. And what that means is as an owner of the company, you get shares, you get, you get profit share. So let's say you are an apple. Apple makes a profit and then they distribute that profit to the earnest. That's because you've got an avulsion. Amazing. I love that and I loved businesses and I love supporting businesses as well. The great thing also ease. Now with the availability of financial instruments, you can invest ethically as well. And I'm not gonna go too much into this, into this, in this program that ethically investing, ethically, of course, it's not perfect, but it's pretty good. And the returns, they generally on par and sometimes they even out way. Just the standard, standard companies. So I'm a big fan of ethical investing and it's super easy to do. We're going to talk about how to actually do it down the track in one of the further masterclasses. So why would we invent, why do we invest at all? Like I said, it, so we can protect our money? You've probably heard all of inflation or the time value of money before. And what that means is the price of everything goes up each year. In most countries there is some countries have deflation. But in Merced, all developed countries, there is inflation. So, you know, you think about how much it costs to, as we say fast food, but their prices of phosphorus seem to decrease. And saying We chocolate and soft drink, the price of milk. I don't know who I don't bind and unbind milk. I like good smoke actually, I've said string that. Okay, the price of milk this year, I don't know, exerted by mail. Let's say it's $4 for a leader and 10 use a guard. It was $1 for a leader. That is not because the price of the dairy industry is just decided to put up their prices and they're the only ones. It's actually because everything gets more expensive. But in fact, we also generally get paid more as well each Yes, sir. It's kind of like this. Yeah. Everything increases. We also get paid more. You think about the average salary now versus the average salary ten years ago. So the average salary now is in Australia is I think is around 70, 80,010 years ago. You know, I'm having a guest, but I would guess around 40, 50, thousand, and everything moves in this direction. So if your money is in cash, you're not really getting much. You're maybe getting 1%, probably getting 0. So in each year the price, everything goes up, but your money seeing in cash, you're actually losing money each year. You're losing the value of money even though the val, even though that the number stays the same, the actual value decreased. Because now the present MOOC is going up and up Abdullah. But you still have the same amount in your bank account the next year. So investing protects us against inflation. And the other thing it does is after a while it starts to grow. I mean, it says to her anyway each year, but it really starts to do magical things. When we let the power of compound interest kickin, which I'm going to talk about a little bit later. So essentially, why we invest is to protect our money and to slowly grown over time. All right, I'll see you in the next session. 4. 4. Other Assets Classes: All right, I want to talk about the asset classes and what else is available to us. So there is also, we can invest in shares, like I said, we can also invest in direct property, and we can do that commercially or residentially. We can invest in bonds, which are essentially where we learned money to accompany or to a country. We can invest money in cash. We get income for that. We can invest money in alternative assets, That's like gemstones, then only put in alternative assets, gold as an alternative asset. You know, my dad likes to be by old cars. He says that they're great investments. They haven't paid off yet. Anything like this. This is an alternative investment. Then we also see cryptocurrencies which have started to rise in popularity as well. So these are the asset classes. I like shares it because on average they have the highest return. When we're looking over a long-term average. And we're not looking at, you might say, Yeah, Well, Crypto Crypto is gone up by thousands of percent. Yes. But it's short-term. There hasn't been a huge amount of time that this has been happening. Here. It's not like the share market which has been around for hundreds of years. And there is no underlying tangible asset. It's all based on what people think it should be. And while shares you like that as well. It's based on what the crowd things, it's worse. It's kinda like a popularity contest. Eventually, it meets its intrinsic value, its actual value, and that is based on its underlying assets, its profit, it's physical assets and maybe the neat orange, the land. Maybe you don't use the building. It's based on its research and development. It's based on proposed future cash flows. Maybe they have new products coming out that's going to increase its future cashflow. It's based on its goodwill, so it's brand. These all contribute to its two, its value and to its price. But of course, because it's on a public system, It's kind of a popularity contest. So then you can get into active investing and think, okay, rather than which company do I want to buy it? Psych, which company do I think other people are going to want to buy? And then it gets really convoluted each. This is a complex way to invest. It's not the way I like to invest. Instead, I like to invest very simply. I like to put my money in every month in a way that I know that works and has worked over the long term. So let's talk about returns from. So property. I'm going to talk about in Australia because Australia is known for having a booming property market. Actually, when you look at the returns of property since 1836, probably in Australia, has gone up by 2.12%, 0.1%. There's this idea that property development doubles every ten years. The people are taking into account the costs. So this takes into account the cost. This figure there is after inflation. So if we took its role number, it would be around 3.5% that it goes up every year. Then we look at gold, 1.11%, 0.1% since inception. That's crazy. And here these types of assets, I get property, you know, because it's something you can hold it, something tangible. And some people are really, really great at choosing property. They, they've made a lot of money from bubbly gold. Not too much. There's no underlying value. N3, doesn't, it? It's just gets gold, but it doesn't provide an income. It's knowing property that actually gives you Brent. So I liked property, gold. I don't like so much. I think it doesn't do much. It just sits there and it's kinda the same thing of what other people are going to pay for it. It doesn't actually produce anything. Crypto. I don't like so much. But I love what it stands for decentralization. And I love where it's going, but I don't think it's there yet and I would not invest my money in it. I've named you five, 10 percent uterus, these active play money. But what I want to be doing is I want to invest in something is going to be long-term. Rich gave me a long-term return. And I want something that's essentially going to guarantee me a return over the long-term. I also want something's gonna pay me income. Crypto also doesn't pay any income. Yet. You're investing in these really strange and products that they've created. But when you look at it, it's actually dead on debt, on debt and debt it's like a pyramid scheme because crypto doesn't, it doesn't make anything. It doesn't have any income. And 12, we might cryptocurrency, right? I'm not necessarily talking about the technology because many of the companies on the share market, by the way, uh, using or going to be using the cryptocurrency. So you can invest in that way by accessing it through companies who actually going to use it to then make a profit. Okay, that's it for this short snippet and I'll see you next time. 5. 5. Compound Interest: This is the most exciting thing for me. I am totally obsessed with the magic of compound interest. Compound interest. It starts off very similar. You know, it's like they, they tortoise and the hare, desert tortoise and the hare, the start of the race. And the torus we know told us moves like this. And the hair very fast. And what happens is the torus is you slowly walking forwards. There's a finished line, faraway or via, and has the tortoise John staking its type and the hair. Your skin have arised Because it told us is so slower. So it takes a nap, wakes up and sees a tortoise and he thinks, everybody I can, I'll go again here. Can I take another nap, rest a little bit. Told us the men and the hay wakes up. Runs a little better. Yeah, I entitle way for the tortoise. Told us. That finishes the finish line. And that is compound interest. Combining first is slower, it is the toys, but it is effective. It is powerful, and you just let it do its thing. So I'm not very tech savvy. So what I've done is I've created this lighting created, I just put it into a compound interest calculator online. But I wanted to show you all of this because it's a super exciting for me. So what I've done here is I've said, let's say we contribute a $100 per week into the share market, into a basic index fund, sir. And I've calculated this is based on 9.8% and that is based on the S and P since inception. And then I've said we calculate it, we compounded semi-annually because generally dividends are paid semi-annually. Sometimes they paid annually. And then I said what happens every 50 years. So just take a guess in your mind. How much do you think you've contributed over 50 years, if you put in $400 a month until this week. Have a guess in your head what that might be. What do you think that could be? A hundred thousand. Six hundred thousand. Okay. It's 240 thousand. Now, I want you to think, guess about what compound interests is done over that time. So that means that if you or your portfolio made 9.8% this year, then that got paid into your portfolio and you kept it in, you reinvested any dividends, you didn't sell anything, you didn't take it out, you didn't think of the market's gonna do about it. I'm going to pull them out, rounding out near you just left it in the layer to do 50 years. And so that 9.8% in the first year then goes into your portfolio. Then the next year, You've already have that 9.8% in there. And then you can know that I'm Penny, I percent which is on the amount you put on pilus, it's on the growth and the income from your recipe book failure. So you get 9.8% or 9%, and then the same the next year. Now I'm going to present on November they were sent on I'm winning sin. So when you have a guess, what you think the total interest, well, maybe what your total portfolio is. Then over 50 years. If you leave it there, you've put in 240 thousand. Have a guess. Oh, it's just so exciting to me. It's so exciting. $5.8 million. That's right. Just investing in a boring index fund, just sticking in the market. Of course not every year, it's going to be 9.8%. But it easy if we leave it in there, if we write out the cycles, we stuff it up when we pull out our money or when we try and time the market, when we think are it's a bad time. It's a good time. No, you just put it in, you invest consistently and you leave it in there and you get the average return. An average only works over the long-term. I'm going to get 9.8 exactly this year or next year or the next yeah. I mean, I don't know. Maybe row, uh, probably not, you know, it's an average. It to get an average, you have to leave it in for a long time to then get that average, right? You don't get an average from, you don't get a good database from doing something three times and then saying, what's the average? Nor you need to do it for a long period of time. So I'm going to show you this because it's really exciting to me. Elevating graph, film her lover graph. So this blue line, That's where you put in. And this red line is your total portfolio value. And essentially you only put in this much, you know, that's what you put in. And this is what your portfolio is worth because of combat interests. It only really starts to kick up year 16 in it, then you really start to see it working. Year 20 is pretty impressive. 26, then year 30, edges goes a bonkers. I mean, this is exciting. It's so exciting. I love it. So that's the power of compound interest. And what do we need to do to capitalize on common interests? We keep our money, we invest in a solid strategy. We're doing ship. We don't just chop and change. We just invest in the index. We track the market. We don't go and ask on a beach him what he's investing in an angle that's a gravity and color money out in any invest in that. Note, we stick to our strategy where discerning, where decisive. And we are focused on just putting the money in, but not focused on looking at what's going on with our polar. We know interested. I never ever checked my portfolio. It's just on direct debit. I don't look at it. It's irrelevant what happens this year because I'm not investing for young dressing for a lifetime. And why would we invest for a lifetime? What's the point in investing if you're not going to access it. Well, remember what I said before about earnings shares, the yarn part of the company. That company pays profit in the form of dividends, in the form of income. So when you want to have a passive income, you have a pool of money. And instead of reinvesting that income, that the pool, that the pool is producing, you can just start taking it out. You'll portfolio is still going to grow, not by as much, but it's still going to grow because it still has the growth aspect. You can average right now it's very lower yield. Yield is interest, interest rate is a very low yield, well, weld. So we have historically low interest rates. But you can average, on average say you can get about four or 5% of income from your portfolio if you structured to be income for GST. So let's say it's on a, let's say you've left that money in nearly 50 years. You have $5 million. What's that going to give you? Five percent, fifty thousand, two hundred and fifty thousand dollars a young. And your portfolios do grows. That's amazing. That's amazing and that goes up every year. By the way. This is how I want to invest. I don't want to be selling. I don't want to have to sell my assets in order to make money. I wanted to just be working for me so I can go and enjoy sitting by a pool, go to the waterfall, whatever it is that I want to do. Reading a book, pick my toenails, whatever. I don't want to be spending time on this and I don't need to be because I know that over the long-term, actually, the tortoise wins. And four are the tortoise. Okay. See you in the next session. 6. 6. How we predict returns: Sir, I spoke about returns. You know, I'm saying 9.8% is the average fissures, 1.81%.1 is for gold, probably 2.1 this m. What am I actually saying? And what are these figures actually mean? We already know what's going to happen in the future, but we have averages and that's what we use, that's the best predictor we have. And I have no idea what the future's going to look like. I have no idea what's going to happen to financial markets. I have no idea what's going to happen with money. You know, what kind of currency we're going to be using. But what I can say accompanies always going to be around. It doesn't matter if we eventually switch cryptocurrency. It's irrelevant. When you think about investing in shares. Companies are always going to be there. So for me, it's also a safe bet that I bet on businesses. I bet businesses are always going to be there. They're always going to be thriving there where he's going to be making profit. Of course, some monogamy making profit. But in the long-term to get any making profit, the ones who are on the top 100, the top 200, otherwise they wouldn't be the top 100 or the top 200 year. We, as consumers are always going to be buying their stuff. And essentially we are actually the ones who are keeping them in business where the ones you buy everything. So the power is with us. Here, we vote with our dollars. If you want a different world, by the way, this is just an off, off of the hands comment around morality or social responsibility. If you want to be empowered, then take responsibility with how you spend your money and take responsibility and how you invest. And that's where the goal investing comes in as well. And you can literally buy unethical exchange traded fund on the exchange. Now I'm going to talk about that. How to actually buy and what different options you have. 7. 7. Are you an active or passive investor: Okay, So there are two different types of investing. There's active investing and there's passive investing. Activity investing is somebody who tries to guess what companies are going to outperform other companies. Or there's even people who do the opposite and they make money from actually betting on what companies are not going to do well. These are just hedge funds. They have other, other instruments that are not just buying companies. There's options, futures, swaps, puts, but I'm not going to talk about that right now because I don't use them. You don't need to use them either. It's not, It's not necessary to make things complex. So active investing is when you are choosing that company's going to do well, that company is gonna do well. Google's gonna go up, quote ABC. Jpmorgan is gonna go down. So I'm going to sell that from my portfolio. What else is 0? Samsung I find is going to come out and I think I'm Sam, Sam's gonna go down and drop them. I'm going to buy some. This is what being an active investors, you're essentially making bets on where it's going to go. Y ij are actively invest is because firstly, I can't be bothered. Secondly, because I knew the averages. I know that 70 percent of fund managers, these are professional investors who work very long days. You're being to Ivy League schools, they get a wrong 70% of the time. Sir, how can the average investor who is not doing this full time get it right? Most of the time. It's just the numbers are not on their side. Maybe for the short-term or the long-term. I I I why bet on it. Why? Why be on the losing team? Why do you think make more things, things more complicated? I understand that people want to make a higher, bigger return. But then you're playing the game of the hair. And that's, you know, I'm infer the long-term because I see what company injures does compound interest. Interest is not something that happened, that happens or doesn't happen. It's something that happens. It's mathematics. And that's where I go. I go on the side of mathematics and averages. That's how I invest. So active investing, passive investing is when you join, try and beat the market where you just invest in maybe the top 100 stocks, let's say Sir Stokes is another way for shares and equity. So let's say I just felt my red Record Group. And another piece, I think it just weighed it. I can see it up there. Oh my God. I don't My bad. Okay. What was I saying? Could lot passive investing. Okay. Top 100 companies. So you just buy 11 share. You can just buy one share on whatever exchange of whatever country you're in. So let's say where in Australia the exchange is ASX. And I want to buy the top 100 SMB companies to SMP is one of the, one of the exchanges that the US, US, I went by the top 100 companies. I don't have to go and buy a 100 come each 100 company, each company in the top 100, I just buy one ETF index fund that has the a 100 companies in it. What do you do, Exxon do I, do I buy, I don't really mind. They're all much of a machinist. Yes, we want to look at fees. You know how much they charging index funds. And the index funds, you generally want to be definitely under 0.4% for the themes that should be around that. Though, maybe even Lola, and maybe I want to buy in a few different countries as well to diversify. But I love the US because the US has the biggest market. It has the biggest amount of innovation. I also like Asia, so I'm also in Asia. I don't really investing in Europe and Australia because you turn country even though I don't live there and I don't actually like I don't actually have because they don't like it. I love the table sometimes, um, but the country is not harmed me anymore. But there's still something in me that I guess Australia, Australia companies pay great dividends as well. And we'll say a franking credits, which essentially means that the company has already paid tax for you, so you don't need to pay tax on the income they pay, sir, That's also a really great burden. And if you're international and you're investing in Australian shares, you don't pay any tax on the income because of this particular nuanced called franking credit. Okay? So passive investing, active investing, I'm big fan of plaster. You passed it investing because it's easy, because it's accessible, because I'm for the averages and on average, passive investing does better than active investing. So when you actually look at the average active investors or we're not talking about professional investors anymore, just the average active investor. They return is around 3%. Whereas when you look at the passive investor, you can get an, you get an average of 9.8%. And I choose the 9.8%. So that's why I'm big fan of passive. I also feel like people will get really caught up in investing and make it a big thing they raced, spend so much time on it. It's really like people get emotional about it and make it a grand you're seeing and who knows more about this company or that company? You'll, It's huge forums about these nuances. And I just, if you're into that great, but I'm just not into that. The reason I mean, to investing, even though he studied it and worked in a ten years is because what it provides for lifestyle. That's why I'm excited by it. I'm excited by combining interests. I'm excited about what that does for us, what that means for a person in terms of their financial freedom. That's why exactly passing nesting. If you are excited by actually investing and doing the due diligence on each company, then it may be active investing is for Europe. But I would also consider these average returns. And what I suggest to my clients who are really into investing and they wanna do this and they went everywhere and crypto and Tesla, which is a whole nother story, then use that 50, 10%. And then with that, because you can make money, but you also can lose a lot of money. So be comfortable with, with, with that. Okay. I'm gonna see you in the next session. I'm just having a look. I've written down what I'm going to talk about. Yes. Okay. I'm going to break it up and join the session. 8. 8. What investment platforms to use: So what platforms do you actually use for investing? It depends what country you're in. If you're in a developed country, it's great. There are a lot of options for you. I personally. So there are two ways to invest. There is one you can invest directly through a investment platform that uses, that directly, talks with the exchange and has pretty much it has every single investment in your country available for you invest in. What that means is you can still be a passive investor, but you have to manually go in and buy what you want to buy. So let's say you buy, you put $1000 in the Dow Jones, the Vanguard S&P 500 US based. And then if you want to do that every month, which I suggest you do, which I'm going to talk about. You have to go in and manually do that each time. So for me I'm all about ease and simplicity. So what I love is I love these new investment apps that essentially have track the index. They've, they just have a blend of index funds in the most of them, some of them active, but most of them just use index funds. They charge you a little bit of a higher percentage fee. But then there's no transaction costs. For me. It's also worth it because the admins already done. I just put everything on direct debit. So every fortnight I have money coming out of my bank account, The goes into my investment portfolio, and I use an investment up for this. So in Australia, I use one called rays. By the way, I'm not an affiliate of any of these financial platforms. I don't recommend any financial investments. I'm just here to educate you and teach you into share my own experience and what's available. So I use res, which is uses ETFs index funds. I mean, the ethical portfolio, which I'm not super, I was kind of a choice and that's the thing when you're investing this way, investment apps, it's not perfect. That was a choice because I want to be a 100 percent invested in the market. I have cash already available. That is essentially my, my risk-management. That's, that, that's how I manage my risk profile, which you might have heard of before. I'm not going to waste my money investing in bonds or cash type assets because they have to pay a fee on them, they get hobby anything. I'd rather just go a 100 percent of the market and then keep three months of expenses in cash. So that's what I do. So with the ethical funds, unfortunately, Ray's blends it with like some cash, some bones. Also investing in NYC a lot in Europe. Whereas I would just rather be nested mostly in the US, 60 percent US, maybe 20 percent Asian, 20%, Australia. That's good for me. Maybe some emerging mom, maybe I would shave some often emerge and invest 50 percent in emerging markets as well. Yeah, I'd probably do that. But I joined because I like it on direct debit. So it's not perfect, but it's good for me. And I get to sit up this direct debit and that works. I'm also invested in an investment at gold spaceship, which is active investing. They invest in tech companies. And for me that's kinda like my five or 10 percent play money that I invest with them. They have high and fees because it is active investment. When you actively investing, there are people actually choosing the investments, right? And so then you need to pay them. So the fees are high on. So you might see a hedge funds, you know, when I worked in, in, in investment, there were some hedge funds that charged 50 percent. That's huge, that is so high. You, they promised great returns. I mean, it must stay. They never, we never, I never saw great returns coming from these hedge funds. But yet a stem of them each edge really, really high phase because they have very intelligent people working for them. The demand, very high paychecks as they should. They work very long hours. They've studied a long time and they're very smart. And so you're paying for their salaries. And that's why there is a higher inactive investing as well. So you also have to consider that with activists passive. So how else can you invest? So you can invest in directly through a platform where everything is available to. You can even now access international platform. So you can say your iron Australia, you can directly go into an international platform that allows you to invest in the US. You have to think about currency as well here. So then you're investing with US dollars in the US, or you can just keep using the Australian, Australian ASX platform. And you can invest in US companies that way, which is my preferred way. You know, I like to keep things simple. I don't like to complicate things. You can access international funds in the country you are in on the exchange. You that is that is applicable for your home. I got him talking service I'm signed to get to take because I get so excited about this stuff. So how else can you invest? You can also invest in active funds. So you will see, okay, Berkshire Hathaway. You can invest in that fund that's on the exchange. So you can go and invest in an active fund. And then they have fund managers who pick which companies they think you're gonna do well. Then you can also go directly to accompany even Vanguard and you can fill out an application and you can actually invest off market. So not publicly, you can actually apply and set up a direct debit and invest that way as well. That used to be the way we invested like 556 years ago for people who wanted to do direct debits. But now we have these investment and investment apps available which are amazing. Okay. That's one more, one more quick session. 9. 9. Decrease risk: So the last thing I wanted to speak about was risk. How do we reduce risk? We reduce risk by investing for a long time. So we can get that nice average return. Market cycles used to be around seven years, but now they're around 10 to getting longer and longer. So we don't want to invest in learning period less than 10 years because we don't know where we are in the cycle. And we want to get that nice 9.8 average return. And I'm saying nine brain, of course we are nor for sure that that's what's going over the next 10, 2030 is our donor. But we can say, Yeah, probably on average, it's a good easy, It's a good estimator. So that's the first thing. How reduced risk if we invest for 15 years? So this is also using averages based on the past, the boss. But if we mess of 15 years, there is 90. And the way that I teach, there is 99 percent guaranteed that you will make money. Now that's an investment, guaranteed investment. But it has to be, you have to be committed to investing 50 in use. So this is a long-term play and this is the only way I would invest. And people say, Well, why do I, why would I invest it serve longer, so far away? I mean, have some have some discipline. You know, think about if you start to invest 15 years ago, how happy you would be now, this is where we consider our future self, day and age. We're so focused on instant gratification. And I don't know how to fight against that practices. Xiang do some yoga, meditate, Master something, be masterful. So I'm trying to get things so quickly because what happens is it's junkie. You know, it's like junk food. It's I mean, I live in Bali and the house that I'm in, and actually all of the houses here, apparently, when they build them, they build them as quickly as they can, as cheaply as they can. And the foundation has no moisture barrier, which I know all about this now. And what that means is all of the moisture. It's very Dan PR humidity of 75 around 70 percent. The moisture seeps up through the floor, goes into the walls. Everything gets moldy because they just didn't put down this moisture barrier, which is apparently very simple. Not that costs costly, but they wanted to do things quickly and they will catch up with you in the end. So now this is a little bit beyond investment that to master URI, to master the things that you do, to become masterful at it, to be patient, to commit to it, to do it every day, yearning to invest every day, but to commit to your strategy every day in a committee who you want to be every day, and how you do anything is how you everything. So you're investing is a great way to actually practice this. You know, how can you let go the attachment to the external world and what's happening right now and getting caught up in the media and getting caught up in the noise of it all doing, coming back to your incendiary into your in place and becoming empowered, being grounded in yourself. Alright? So the other way we reduce risk is we dollar cost average. And what that means is we invest consistently. We don't invest just one lump at one time because we don't know where we are in the market. So like I said, I invest every fortnight and that's what I encouraged people do as well, because it doesn't matter if the price is high or the price is lower, we get the average and we want that average. That's what we want. We don't want to, we don't want to be trying to guess what's going on. So reduce risk or dollar cost average and invest for the long term. You know, he'll be able to, I'm at risk profiles and stuff like that. Bullshit, No worry about it. This is how you actually reduce risk. You invest for at least 15 years. You dollar cost average. You do passive investing. You have enough cash outside so you're not selling down your investments every now and again when you need to go on holiday or the car breaks down on your insurance payments due and you think, Oh, I forgot even though it's every single yeah. No, you have you do public money cashflow management, you have that sorted. Investment is just one piece of the puzzle. It's just a small piece of the puzzle. There is so much else going on to create a really solid foundation for financial freedom and for to support your lifestyle. But this is an important part, but it's just one pot. You need other parts to be working as well to actually keep investment's going. You have your cashflows not sorted, and you have emergency expenses all the time, then you're going to be stuffing up your investment strategy because you're going to be pulling money out of your investments. So it's a entire organism and I encourage you to look at everything and I'm so happy that you took the time to do this. And yet you guys really inspire me that you are committed to this. And you were focusing on how to build wealth in a way that is based on based on what is the long-term way. And it can look very shiny to go elsewhere. So I'm really inspired by people who do take the time to learn this and to learn how it actually works and learn the averages and Yang commit to it and intake the long-term. Thank you so much for your time and for your presence. It's really an honor. And you can connect with me on Instagram. My name is friar if our EIA to school at savage underscore it. Yes, that is my real name. Thank you, mom. I wanted to be gold crystal when I was little girl, apparently I wanted to be as true, but I mean, I didn't actually want to be a stupid button. That's the name I wanted crystal, no offense to anyone called Crystal. And I also have a program called School of money where I teach you how to do everything. And I also have a program called invest like equator, which teaches you exactly how to invest and actually show you how I do it. That was my battery saying it's lower. So I guess that's time. Thank you so much. See you guys.