In this conversational video, Hernan Vazquez shares his personal perspective on how entrepreneurs should allocate any surplus income. He begins by emphasizing a frugal lifestyle and the importance of living below one’s means, positioning residual income as a tool for further growth. He argues that the most effective use of extra cash is to reinvest it directly into the entrepreneur’s own business, citing his own experience of turning $25,000 into $250,000 through Facebook advertising, which he describes as delivering a near‑1000% ROI—far surpassing traditional assets like stocks or bonds. Vazquez then expands the strategy to creating additional, closely‑related companies or assets that can feed each other (e.g., authority blogs, traffic arbitrage, media properties, lead generation), effectively building an ecosystem of verticals that amplify the core business. He advises that diversification into unrelated investments should come later, once the core and related ventures are well‑established and generating substantial cash flow. Throughout, he stresses that his advice is personal opinion, not professional financial or tax guidance, and invites viewers to comment with questions. The video’s core message is that entrepreneurs should prioritize reinvestment in high‑return, business‑relevant opportunities before considering broader diversification.
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Hey everybody, what's up? On this video, let's talk about how you can invest your company money as an entrepreneur. Hey guys, what's up? Welcome to another video. This is Hernan Vasquez, and thank you once again for watching this video, and thank you for all of the support that you guys have been giving to the channel lately. Okay, I'm really, really really excited about this channel and what is going on with this video, so I hope I reach a ton of people and I help each and every one of you guys, okay? The reality is that I've been talking a little bit about, a lot actually, about paid advertising, how to grow your business, etc., but this channel is kind of a side hobby for me, so I'm not actively investing money on it. I'm just doing it for to help you guys and to share a little bit my experiences and my points of views when it comes to making money online and growing your business online. And the reality is that it's been growing steadily, organically, 100% organically, which is a great thing, okay? So thank you once again for all of your support. Now on this video, I just wanted to address real quick the question on how to invest your money when you're an entrepreneur and you have like some income already and you're living well below your means. You know, I particularly have a really frugal lifestyle and I think it should be like the rule out there. If you're an entrepreneur, if you're living within your means, you should have any kind or some kind of residual income, if you would. Now this is a video for some of you guys that have been asking this and you already have some success. You know, you're making some money already. For some of you guys that are not there yet, which is completely fine, you'll get there. There are some other videos, okay? So with that said, I need to add a disclaimer to this. This is completely my own opinion, okay? I'm not an expert in investment. I'm not an accountant. I'm not a CPA, whatever. So if you have any doubts whatsoever, just contact your lawyer. Just contact your, you know, your investment guy or your CPA, whatever. This is 100% my opinion, and it shouldn't be taken. As professional advice because I'm not a professional, okay? This is based on investments, kind of investment experience on my own, like growing my own companies and also seeing and learning from my mentors. And the reality is that many people when they have some residual income, they will start thinking, okay, so what can I do with this? Should I save this? Should I go ahead and invest in real estate or should I go ahead and invest in bonds or stocks or whatever? And the reality is that I see most of the successful entrepreneurs out there is that every penny that they make that they could reinvest in their companies, number one, they do, okay? They reinvest in their companies because that's the easiest and highest return on the investment and wealth generation vehicle. Just to put you an example, I shared recently how I turned, or how we turned rather, $25,000 into a quarter of a million dollars, you know, just by investing on Facebook advertising, which is pretty damn cool. Now that's almost 1,000% ROI, which is really hard to get on conventional investments, you know, unless you're, you know, stock picking or doing some crazy flips on real estate, which I'm completely ignorant about those, but I know how to drive Facebook traffic to an offer and then turn that into profit. That's what I do, you know. You know, that's what I do for my business. So if I had like an extra $1,000 or $2,000, even $10K, I would reinvest in that because that has proven to be the highest wealth generation money multiplication tool that I particularly know how to manage. Okay? So with that said, you can either reinvest on that because in terms of comparison, you know, the ROIs or the annualized ROI or whatever term you want to use, it's a no-brainer. Okay? If a stock will give you 7% or 3%, a bond will give you 5% every year, I know that, you know, there are less risky investments, but, you know, if I can generate 50% ROI every month, that's a whole lot of money, okay? And that's how you see these companies skyrocket, because they are reinvesting every penny that they have into growing their bases. So that segues way into like number 2, which would be grow in other assets that will grow your company even further. So for example, I've seen, you know, many mentors that when they have like asset number 1 or company number 1 working smoothly and generating money, they will take part of that money and reinvest in company number 2. But company number 2 is highly relevant to company number 1, and 100% of the cases, they will feed off each other. So for example, let's say that you have a blog that's making decent amount of money that you're putting money into it, that you have a team, etc., etc., etc. Now you can open another company that will generate the same for companies. You can put out blogs, authority blogs for other companies, and that would be a separate entity of your blog. You know, you could do traffic arbitrage. You can sell that traffic. You can sell banners and you can become a media company, etc., etc., etc. You know, you can go ahead and sell leads, and there's a bunch of things that you can do once you have the infrastructure in place. Now what this does is that from Company A, you will be feeding leads or you will be feeding clients into Company B, so Company B doesn't need to start from scratch, you know. And the same with Company C and Company D and so on and so forth. So at the end of the day, you have gone through all of the verticals that your company or that your business could potentially have with different companies, okay? If you're selling courses like I do, then you can become a traffic agency, then you can, you know, offer done-for-you services, etc., etc., etc. So when it comes to mind, where should I invest my money? Instead of going out there and trying to find the next best investment vehicle, try to find something that is really relevant to your company. If your company is already working and you do not want to keep investing on it, which is completely fine, try to find something that is really, really relevant to the audience and to the company and to the niche that you're already serving, okay? That's how you turn a company or a business into pretty much an empire, okay? Because again, you are occupying all of the little verticals and all of the companies will feed off each other. All right, so that's what I'm trying to do with my companies right now, and that's what I have been, you know, seeing many mentors, like multi-millionaire guys, doing over and over and over again. So if you want to exit at some point Company B, that's fine, you can exit it and you will still have Company A, Z, and D, for example. You know what I mean? So try to think about it as, you know, doing in a really relevant way so you are always coming up with new products and new verticals and new companies for your business. All right, so that's what I'm trying to develop over the next 3 to 5 years, and that's what I've been seeing, you know, highly successful entrepreneurs do the same. And I strongly recommend that you give it a thought because otherwise you will be all over the place. And which is fine, diversification, you know, but that comes at a much later stage in my opinion when you have, I don't know, a lot of money to put into that. All right guys, so thank you once again for watching, and if you have any comments, questions, whatever, just drop them in the comments below and I will be more than glad to chat with you and have a conversation with you. All right guys, thank you once again and I'll see you in the next video. Bye-bye.
