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Christian investing principles - 3 Things To Avoid! - YouTube
Channel: Kingdom Business
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Well, hey guy, welcome back to the
channel one of the things I want to talk
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about in this little session is
investing what does that look like for a
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Christian and the top three mistakes
that I see people making you know it's a
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it's pretty topical at the moment right
I'm filming this I guess most of the way
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through the health pandemic of COVID
we're coming at the other side at this
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time and so the markets have been
decimated and there's a whole bunch of
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investors racing into the market and
there's like a second pandemic taking
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place right all these people trying to
invest in and things like that and so
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it's good but it can be bad and so you
know I get to talk to hundreds and
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thousands of people all the time so I
just wanted to distil down some of the
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things I'm seeing some of the mistakes
and how you can avoid them so that the
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title of the video is the three mistakes
but I'm actually gonna sneak in a fourth
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one of the end so stick around because
it's gonna be awesome
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all right the first one is this do not
fall for get-rich-quick schemes, okay so
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a lot of people that are investing right
now are doing it out of the wrong
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motivation they're by it because they
you know that it's FOMO its fear of
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missing out right, they're buying their
buying investments because they think
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I'm gonna miss out on the stock market
rallying or the Nasdaq or they're the
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ASX or wherever you are around the world
it's like okay that's probably
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the wrong motivation or people are
racing into the property market because
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they're scared that if there's a dip in
the market they're gonna miss out on
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that opportunity it's fundamentally the
wrong reason and the way that some
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if somebody's thinking like that they're
approaching investing the wrong way
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they're looking for a quick buck and of
course for some people they can time it
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well enough that it works but you know
like the real estate investing market
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and the stock market they love people
that make those quick decisions because
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it just eats them and chews out their
money and they usually lose and then
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they've got a hard-luck story at the end
right so we want to get we want to get
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away from get-rich-quick, we're not
trying to back a winning horse here
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we're not because if you approach
investing like that you're punting
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you're hoping and that's a really bad
way to invest okay if you want to be an
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investor my Bible says Proverbs 13:11
says this wealth gained hastily
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will dwindle but whoever gains
little by little will increase. That's
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why I'm not a fan of people out of FOMO
just jumping into an investment
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because you know you know take take that
as one example here's another example we
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know statistically that 80% of the
people that win a lottery or when a huge
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amount of money end up in a worse
position in a 24 month window two years
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right why is that
what it's the same reason as Proverbs
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reminds us that wealth gained hastily or
dwindle away so same thing by whoever
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gains little by little will increase
it's because it's a headspace all
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right so one of the things that happens
is if you don't have the mental maturity
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to handle the increase then you will
blow it you'll it'll be a curse to your
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life and not a blessing that's why the
scripture says if you gain it little by
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little it'll increase because as your
wealth increases little by little by
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little your mental maturity can keep up
with the journey and then you don't blow
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it on stupid things all right so so
you are better off to build wealth
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slowly than you are be part of
get-rich-quick schemes also here's a
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different intent 1 Timothy 6-9 says
those who desire to be rich fall into
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temptation into a snare into many
senseless and harmful desires it leads
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to ruin and destruction that's what can
happen if you don't have the mental
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maturity to handle the increase as it
comes that's why you want to be making
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sure that you are getting wealthy little
by little because the Bible tells us
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that is blessed here's what I would say
to you don't try and get rich quick get
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rich for sure and the difference is take
a long-term view right learn about what
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you're doing don't try and race into
something okay
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now you might be sitting there thinking
oh why is he talking about getting rich
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I kind of want to preface this this is
not so we can hoard up for ourself and
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have all the fine things in life if
you've watched anything on my channel
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you'll know that the reason why we
pursue wealth and I believe the pursuit
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of wealth is Noble as long as the
pursuit of wealth is for others meaning
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that we're building an asset base sure
to look after herself and her family but
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the main reason why we're trying to
build an asset
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and invest it so that we can do
sustainable giving so that we can fund
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projects fund our churches fund
initiatives and play a part in advancing
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the kingdom of God that's the motivation
here right but if you don't have that
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you've got a selfish desire to get rich
then 1 Timothy 6 9 tells you what is
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likely to happen so stay away from
get-rich-quick schemes right I get them
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pitch to me all the time right and and
there's a there's a heap of them you
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know I remember years ago there was some
Ponzi scheme where you could get in and
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get a return to get in the get return
and it worked as long as people were
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putting money in these schemes it worked
incredibly well and then it all fell
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over when people got smart and clued on
you know I remember you know I've had
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people come and pitch to me about you
know you can do you can do money betting
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on lenience right where you basically
buy debts off other people and then sell
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them on and make your clip and like I've
seen all these things right you know
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like be involved in this scheme and pay
some money and then this thing happens
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and we'll be able to release some money
and you and they've all been pitched to
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be and mostly by well-meaning Christians
right you know we've got Bitcoin you
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know and people turn you got to get in
there because they're going to be some
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money and all these kind of trading
crazy things and they're not you know
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and and all those people by the way like
all those people that came to me and
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pitched these ideas they got another one
next month another one next month
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another one next month and they've never
actually built any wealth or any assets
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if you're enjoying this by the way do me
a favor please hit the subscribe button
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and then you'll get all the future
episodes that come out right so I get
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pitched these things all the time and my
answer is no I'd rather build a machine
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a system a way of knowledge and build my
wealth slowly over the rest of my life
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that's how you have sustainable wealth
that's how you end up with a pool of
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good assets that's how you can you know
give away your yield right consistently
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and it doesn't chew into the asset base
right so just do this thing slowly
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number two is don't be lazy alright so
here's an interesting story from
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Scripture that you would have heard me
talk about before if and what something
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else I'm fascinated with the story of
the means right guy goes away to a
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faraway land to get his inheritance he
gives ten meters to ten people and says
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trade until I come back and we know that
this is a story of using our gifts and
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talents during our life here on earth
but I guess the subplot here is that
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when he comes back he asks the people
a given account seven never show up only
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three given account once as I turned my
meter into 10 once as I turned it into
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five both of those people he says well
done and then there's one that says I
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hid it in the ground and I did nothing
with it and here's your Mina back and
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and that person there they were lazy
okay do not be a lazy investor you need
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to learn you need to learn before you
earn listen all these things are risky
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okay but the the opposite of risk is
knowledge the more knowledge you have in
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an area the less risky it is in an area
so what I would suggest to you and the
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mistake most people make is they don't
learn it right they don't take the time
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to study a strategy they don't get
knowledge around it right because let's
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face it you could do you could do real
estate investing you could do stock
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market resting you could do buying
businesses and within each of those
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there's you know many choices you could
flip houses you could do multi rez you
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could do units you could do houses you
can do long-term right so there's lots
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of different strategies and by the way
all of them will end up being pretty
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much the same at the end of your life
right the problem is is that people do
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it that they either don't educate
themselves or they do a little bit of
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this one a little bit of that one will
be this way and they never get mastery
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over one of them to do them well enough
don't be lazy like the guy with one
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meaner you've gotta learn strategies for
me my strategy has always been probably
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will always be is long-term holding
residential investments why because
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they're the things that take the least
amount of time once I bought it I can do
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nothing with it right for 25 years my
kids will Bordeaux's them and build new
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ones that's what I want because it suits
my lifestyle so I know that intimately
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and within there are no suburbs I know
how to walk into a suburb and know this
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house is worth five grand more than this
house because of these differences right
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that level of mastery means I don't have
risk okay when I go and do that but if I
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was to start doing some other strategy
flipping houses I'd be terrible at it
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because I don't know what it costs to do
Renault to make sure you're locking you
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Kappa I just don't know that now I could
learn it but I've got a strategy what
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I'm going to say to you is like learn
learn learn go deep in one strategy and
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pursue it like really
really well because then the more
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knowledge you've got around that the
less risk the more you can be on the
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front foot the more you can be
aggressive in the way that you do your
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deals and life will be better for you
right so do not be a lazy investor make
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sure that you are learning it's a it's a
it's a skill base you're doing it yeah
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you're reading about it you're attending
courses you're you're going to seminars
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whatever you want to do but get the
knowledge because that's what's going to
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mean that you don't burn money all right
the third mistake that I want to talk to
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you about is people that eat their seed
all right they eat the capital okay
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let's talk it let's say they eat their
yield okay
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so buy a piece of real estate that piece
of real estate will go up down and
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sideways over its life in value but the
rental yield that comes off it is very
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consistent okay so go back to shares you
buy shares in a company and if you buy a
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managed fund you don't get this luxury
but if you directly buy portions of
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businesses and shares then you get a
dividend right so you still hold the
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value in the business but to get a
dividend every single six months or a
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year or however they pay out the mistake
most people are making when it comes to
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investing is at the start of their
investing journey the numbers are quite
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small the yields are small right so you
know if you let's say you put $10,000 in
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the stock market just to use an example
you're only gonna get $400 probably in
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yield if you're for you know if you've
bought a $500,000 investment property
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just picking around figure now you're
probably only gonna get 25 grand a year
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in rent right which is two grand a month
so the mistake that most people are
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making is they don't value the little
bits at the start of the journey and
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what they do is they take them they take
them and they live off them right
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they're living off the yield they're
living off the rent instead of investing
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it back in so I just quickly did some
numbers for you to kind of show you the
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compound effect difference between
leaving the yield in the system to make
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you more money and taking it out so I
just use some random numbers here right
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I said if we start with $10,000 we start
with 20 $10,000 and we invested over 20
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years yes that should be the minimum you
thinking if we take $10,000 we invest in
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over 20 years and I've just thrown in a
7% return
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right which is somewhere between what
you get in the stock market and real
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estate just for fun right so here's what
happens if you leave that $10,000 in for
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20 years but you take the yield every
year seven hundred bucks right people
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think that's nothing I'll just take it
and I'll buy some handbags or some cars
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or once you take that seven hundred and
you take it back into your own life and
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it gets washed out with all your
expenses you can never reinvest that
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seven hundred and you're sitting there
thinking who cares it's seven hundred
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you can't retire off seven hundred I
know but here's what happens when you
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leave it in there okay if you leave it
in there and you come so at the end of
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year one you get your seven hundred and
you put it back in now you get seven
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percent of 10,700 take that and you
leave it back in right so in in in
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scenario number one you invest ten grand
and you eat the seven hundred bucks a
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year out of that money at the end of 20
years you've got $10,000 all right we
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probably got less because inflation and
we live our own but you've got $10,000
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if you actually leave the yield back in
and let it compound at the end of that
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20 years you don't have ten thousand
you've got forty thousand three hundred
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and eighty seven so for X for X the
outcome right if you just leave the
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yield back in to compound over time but
how about this I kind of did that
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scenario and said if I leave the yield
in plus I add $1,000 a month all right
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so I've got to have something on the
side that produces me money ideally a
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business so I take my ten grand
I'm leaving the yield to compound and
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I'm adding $1,000 a month right hardly
hardly a big deal here right we should
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be able to build businesses that can
produce a grand that we don't need and
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put it into here if you do that so the
first scenario
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ten grand at the end of twenty years the
second scenario forty thousand three
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hundred eighty seven dollars if at the
end of twenty years if you actually add
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a grand a month over that period of time
you will have more than five hundred and
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sixty one thousand dollars yes that's
right more than half a million dollars
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by starting with ten grand
reinvesting the yield and adding one
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thousand dollars a month into that asset
pool we're talking here about ten grand
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40 grand 561 we're talking about that
actually moves the knee
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son what's the mistake the mistake is at
the start of the journey at the start of
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the compounding curve people don't value
the little bits and so they take them
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out and they live off them listen if you
do that you are absolutely jeopardizing
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the future right and you do not want to
be doing that you want to make sure that
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when you get that seed come out of your
investing you put it back in and
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compound it okay that's how you build a
portfolio that is big enough that you
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can give forever you know imagine me now
to say to your church hey listen I'm
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going to be able to give you fifty
thousand dollars this year and you don't
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have to sell the asset to do it it just
comes off and you can give it that means
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next year you can go back to church and
say I'll give you fifty thousand dollars
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and you still got the asset okay so do
not eat the yield that comes out of your
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investing find another way to get that
money leave that back in the mix to make
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you more and the fourth one I said I'll
give you an extra one
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the fourth mistake that people make is
they get greedy when it comes to
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investing listen I'm all interested in
the kingdom of God what that means is
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God is never going to prosper you and
bring you a phenomenal opportunity if
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it's at the expense of one of his other
children what do I mean by that I
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literally know people who have sat in
front of me and said God has really
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blessed me in my life and then they tell
me stories about how they screwed some
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old lady to buy an investment property
she thought it was worth three hundred
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thousand he knew it was worth four
hundred thousand so he offers her 270
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she thinks she got close to the deal all
right she later finds out that she got
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ripped off by another Christian so she's
thinking we're all hypocrites like
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normal and he's they're going the Lord
blessed me listen that's not a deal from
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the Lord right that's a deal from the
enemy just so that so that more people
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think that we're hypocrites because and
rightly so we fleeced the lady listen
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it's never gonna be that you prosper at
the expense of somebody else all right
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so when you do this investing thing if
you're thinking I'm gonna screw somebody
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down and get a good deal just understand
that wasn't God the great that gave you
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that deal that is not advancing the
kingdom of God at all what is advance in
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the kingdom of God it's finding out what
they need paying it even if it doesn't
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make sense and understand the Lord will
bring the next opportunity to prosper
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you that way you do well and they do
well everybody does well see the
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long-term
right here is if we start screwing
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everybody we've only got to fund their
welfare anyway so all the money we made
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ends up going back to them in the end
anyway right so we've got to get away
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from that strategy by the way here's a
question for you put it in the comments
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below are you investing simple question
yes or no put that in the comments below
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I kind of want to get a gauge on my
audience how many of you are actively
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investing right now I'll tell you a very
quick story I bought an investment
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property in 2010 and you know and I saw
it in the paper and me and Kimberly went
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to look at it and we liked it and so we
did our due diligence on the price and
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things like that
and we realized you know it was a good
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deal we went away to pray about how much
we should offer and we were hoping that
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we would go away and and then come back
together we have the same number it
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didn't work like that we had a number
that was close but but not the same and
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I said the kimby I think maybe we're
supposed to offer the first amount has
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settled on the second amount so that's
what we did
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anyway during the negotiation you know
we found out that they were believers
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which was amazing and we had a we had a
an agent who was not a believer and this
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is how it went during the negotiations
we basically got stuck on a point and I
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said listen I don't I don't want to
fight over little bits here and gods my
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provider so can you go back to the
owners and say how much money do you
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need to be able to sell this property
and have enough money to be able to do
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what you need to do next and they came
back with a price and we looked at we
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said okay that's that that works for us
as well we'll just settle on that much
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money anyway that blew them away they
came back to us and said hey listen by
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the way we've got this whole garage full
of stuff that we think your kids might
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like would you like us to include it in
the deal well like that would be amazing
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and so we said yes so we added that in
then we found out about a month later
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when we're just before about to settle
that their child had cancer was very
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sick and then moving away from this
house would mean that they had you know
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hours of travel to get to the hospital
we said hey guys why don't you live in
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our house all right we don't want you to
you know ripped out of you you know your
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house and have to move during this stay
in our house rent-free for 4-6 weeks
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whatever you need what we're covered and
then you can just keep taking your child
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to hospital and then when that's all
finished you can move out and then we'll
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move in they said would you do that for
us of course we were and I had the agent
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bawling her eyes out saying I've never
ever seen
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to parties that care about each other so
much who actually want to prefer each
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other in a transaction and she was
crying around him and I just said listen
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we're both full of the Holy Ghost we we
just want to honor each other and she
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could not believe it
that's just an example of what I mean
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right see the Lord has prospered me not
because I screwed old ladies or found
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deals but because I was interested in
both parties and I would say to you that
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that's the biggest mistake most people
are making they live in a transactional
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world where they're trying to steal from
each other they think that somebody has
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to lose for they to win listen it's not
like that in the kingdom of God all
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right in the kingdom of God we're not
all eating out of one pie you know the
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one pie theory is for me to have more
somebody has less listen in the kingdom
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of God God will make more pies so
subscribe if you enjoyed that hit the
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