Ramit Sethi on "Biz Kid$"

You're going to end up buying a loaded fund. It's not worth it. Indexing is the way to go. Launch that website today. Go with the index. It has a 0.18% expense. Yeah, we'll launch the website today. You're going to end up buying a loaded fund. It's not worth it. It's not worth it. Hi, my name is Ramit Sethi, and I graduated from Stanford a few years ago. After I graduated, I started a personal finance blog called I Will Teach youh to Be Rich. It's about teaching young people like us how to manage our money. Saving, banking, budgeting, and investing investment. Since I started it, the site has been featured in the Wall Street Journal, the Boston Globe, the New York Times, and I have about 150,000 monthly readers. I also co founded a company called PBwiki, which lets you create your own wiki. What you can do with PBWiki is create a wiki as easily as making a peanut butter sandwich. And we raised $2 million in venture capital financing. Today. I'm gonna help you navigate the twisty roads of personal finance. And here's the best part. It's not even that hard. Hey, Ramid. I want to invest in stocks and mutual funds. Problem is, I don't know. Yeah, I'd like to know about those investments as well. Ooh, I'm feeling a little seasick. Mutual funds. Stocks. Mutual funds. Mutual funds. When you own a stock, you own part of a company. You own a little piece of a company. If that company does well, you expect your stock will do well and you'll make some money. The bad side, though, is that if that company doesn't do well, you might lose your money. Now, when you own something called a mutual fund, you actually own pieces of a lot of different companies. So even if one company doesn't do so well, you still own a lot of companies. So one minor hit won't hurt you as much as if you own just one company. When you decide to start investing or start your own company or start a first thing to do is. They're taunting us. The first thing to do is start early. It really makes a difference. Let me tell you a story about two different people. One of them is named Michelle. She decided to start investing at age 25. She put $100 per month away for years, for 10 years, until she was 35 years old. And then she stopped. Now somebody else, his name is Mike. He said, I'm not gonna invest today. I'll do it tomorrow. I'll do it tomorrow. He started at age 35, and then he started putting $100 a month away for 10 years. 10 years, Michelle. 10 years, Mike. 10 years, Michelle. 10 Years, Mike. Guess who has more money at the end? I love the views here. Michelle has more money. Michelle has more money. Why? Why? Because. The power of compounding. Because of time. Her money grew and grew and grew on itself. Grow and grow and grow because. And that made all the difference. Start early. It really makes a difference.