I want you to imagine for a moment that you started investing in 1985 for a couple of years your money keeps going up and up until Black Monday they're calling it The Monday Massacre Wall Street had its biggest one day drop in history the results of the decline will hit millions of people up until this point your friends probably thought you were some kind of Genius but now they're urging you to sell but you ignore them and slowly but surely the market recovers until the NASDAQ index in freefall down nearly 10% driven by technology in
general and the internet in particular Traders and investors shell shock your friends are on their knees begging you to pull your money out saying things like it's time to take your profits before you lose everything but you hold strong and things start going back up until you're hit with it was one of the most profound events in generations with huge consequences little did you know you're in for the ride of a lifetime until the global economy will contract by 3% this year the worst downturn since the Great Depression surely this is the end of the
stock market but as things reopened the market soared 27% from its low setting new records what a comeback something I didn't mention is the guy that invested his money in 1985 was actually me when I turned 18 years old the average return over this time period was 11.23% per year so if I'd have only invested $250 per month during this time then I would have made 1,845 1218 that's a return of over 6,000 but between us I invested a lot more than that so now you understand the power of investing I think it's time to
jump into the details honestly it's amazing how many people talk about investing but don't actually show you how to do it so I'm I'm going to quickly walk you through how to invest in stocks on your phone of course remember I'm not a financial advisor this is just the way I do it and before you do any of this make sure you have an emergency fund of 3 to 5 months of living expenses the first thing on our list is to set up an account a lot of people get stuck at this stage is there's
a lot of different investment platforms out there and also different types of accounts but trust me it's much more simple than it first seems especially now you can do it all online when I first started investing I had to phone up the stock broker every time I wanted to buy a stock let's use the trading 212 app I'm going to be using my son's account as my account's pretty Messy as it has a bunch of free shares he's actually been running an experiment on here for the last 3 months but we'll talk about that in
a bit the account you open should be a tax advantaged one this means you won't have to pay any unnecessary taxes these are known as stocks and shares Isis in the UK and rough IRA in America I think the UK options much better as you can invest up to £20,000 a year without paying capital gains tax on your profits and you can take out your money whenever you want in contrast Americans have to wait until they're old and retired and they have a much lower limit of $6,500 per year feel free to use whatever app
you like this is just one of my personal favorites next we need to deposit some money in order to start investing most apps make it pretty easy to deposit money we just have to click these three lines and then select deposit funds as you can see this brings up a screen with lots of different options like instant bank transfer bank transfer debit card and what we're going to use Apple pay let's just put in 400 so we can invest in some stocks together feel free to invest whatever you feel comfortable doing Curtis I'm going to
need your face for the phone all right hang on this next step is super important getting some free stocks since I was planning to talk about trading 212 anyway I reached out to them to see if they would be interested in sponsoring this portion of the video they agreed and they're offering a free stock worth up to £100 to anyone that uses the code Tilbury when they create an account plus you can get more free shares by inviting your friends both of you will get a free share as long as they fund their account so
don't waste your invites and invite brokies and also don't worry if you've already opened an account within the last 10 days you can still use the promo code Tilbury in the app and receive your free share right now we need to plan a winning strategy the first thing we need to remember is that Investments go up and down so it's very hard to pick winning individual stocks that's why I prefer to invest in all of them you probably think this sounds a bit crazy but stay with me I love listening to music I'm a big
Deacon blue and queen fan myself but whatever you like if you've ever listened to the radio or use Spotify you'll be familiar with the music charts the better the songs perform in sales and downloads the higher up they go in the charts on the other hand if a song drops in popularity and sales then it drops out of the charts this is almost exactly the same as investing in an index fund all you have to do is switch out the songs for companies let's take the S&P 500 for example this is a list of around
500 of the largest public companies in the USA the big dogs being Amazon Google Apple and Tesla and just like the music charts if a company does poorly then they risk being removed from the list here's the cool part about an index fund with just one click you're not just investing in one or two companies but in every single company on the list so if one doesn't perform very well your money's okay as you'll spread across all of them so how can we put this into practice well we need to automate our longterm Investments remember
I said my son had been running a little experiment for the last 3 months on his account well he's been investing 5 into the S&P 500 every day why5 because that's about the average price of a star Starbucks Coffee automating your Investments like this is a great idea as it means you can just set it and forget it his portfolio is actually doing pretty well as you can see in the green his return so far is £ 3646 and that's a return of 5.03% not bad for a little experiment if you want me to keep
you updated with this when it reaches the 6mon mark let me know in the comments to set something like this up all you have to do is Select pies and then press the plus icon now you can select whatever stocks you want to include in your pie for this demonstration let's just keep it easy and pick this S&P 500 Index Fund by the way look out for if it says accumulation or distribution in the brackets personally I always go with accumulation as it reinvests your dividends back into the stock automatically the less I have to
think about the better now let's tap add to Pi and then the arrow button if there was more than one stock in here then we'd be able to change the percentages with this slider right tap next next and then Auto invest this value projection is really awesome as it shows you how much money you could make based on historical averages of course when you invest you can get back less than you invested as Investments can rise and fall but it's still a great way to get an idea of how much you could make Based on
data backed projections I mean say we invested £250 a month for 31 years you'll only have invested 94,000 of your own money your portfolio would be one .14 million if we expand this to 40 years your portfolio will be 3.56 million it's worth having to play around with this as it's quite motivational seeing how much money you can make with a relatively small amount invested per month and to all the people in the comments saying well what about inflation it will make your money worth far less as long as you're investing and not just keeping
your money in a bank account then inflation is not something you need to be extremely worried about a additionally I increased the amount I was investing to keep Pace with inflation now let's pick some individual stocks although I wouldn't recommend that beginners bother with picking stocks I know many of you are going to try anyway especially since you've seen people make millions from the right mem stock that skyrocketed like GameStop all right so there's basically two ways to take a stab at figuring out what's going on in the stock market Technical and fundamental analysis those
quick deal day Traders are all about the technical stuff pouring over price charts and patterns thinking they've got the scoop on how the Stock's going to swing just by eyeballing the ups and downs now me I'm more of a long-term player I dig into the nitty-gritty of a company's fundamentals you know the financials who's steering the ship and how well known the brand is I reckon that's where the real Lowdown is for predicting a Stock's long-term success so I sift through income statements balance sheets and cash flow statements when I throw money into a stock
I'm in it for the long haul at least 2 to 5 years minimum to find stock simply click on the magnifying glass icon trading 212 have made it incredibly easy to find Stocks by providing various lists such as big Tech popular ETFs Banks and most owned there's also lots more take a look when you find a bit of time you can even go on the social feed Tab and see different pies that other users have created and copy it for yourself with a single click so you don't have to find the stocks yourself on the
stock page you can see the price graph and by scrolling down you can actually access all those important financial documents I discussed earlier now let's buy a stock Tesla will do now this pulls up a page with a couple of different options the first one is a market order a market order is just like when you go to the supermarket and pay whatever the price tag says a limit order on the other hand is like going to a boot fair and haggling for the best price you want you can put in a price that you're
willing to pay and if the price ever gets to that level then the app will purchase the stock for you as a beginner that's all you really need to know there's no point diving into the other options let's buy £400 worth of Tesla so I can show you how it's done the final step is to press send by order and boom we're now part owners of Tesla so now you know all the steps and you've got a free stock with a link in the description what's holding you back well it all sounds great Mark but
isn't investing a bit risky well take a look at this if you were investing a single amount every month from the age of 25 you would be around about here if you invested for around 30 years now if you waited 10 years this is the difference that will make to your growth somewhere around about here look at the difference it's absolutely crazy so start young if you have a diversified portfolio of index funds and keep investing at a gradual rate each and every year then even if there's a stock market crash then historical data shows
you should be able to endure the storm just like I did if you want to know why net worth goes crazy after 100K then you can check out this next video but don't click on it just yet make sure to subscribe if you want to grow your wealth okay I'll see you over there
