00:00I want you to imagine for a moment that you started investing in 1985. For a couple of years,
00:07your money keeps going up and up until Black Monday. They're calling it the Monday massacre.
00:12Wall Street had its biggest one-day drop in history. The results of the decline will hit
00:16millions of people. Up until this point, your friends probably thought you were some kind of
00:21genius, but now they're urging you to sell. But you ignore them and slowly but surely the market
00:27recovers until the NASDAQ index in free fall down nearly 10%. Driven by technology in general
00:34and the internet in particular. Traders and investors shell shop. Your friends are on their knees begging
00:41you to pull your money out, saying things like it's time to take your profits before you lose
00:45everything. But you hold strong and things start going back up until you're hit with. It was one
00:51of the most profound events in generations with huge consequences. Little did you know you're in
00:57for the ride of a lifetime until... The global economy will contract by 3% this year. The worst
01:04downturn since the Great Depression. Surely this is the end of the stock market. But as things reopened,
01:10the market soared 27% from its low, setting new records. What a comeback. Something I didn't mention
01:17is the guy that invested his money in 1985 was actually me when I turned 18 years old. The average
01:24return over this time period was 11.23% per year. So if I'd have only invested $250 per month during this
01:34time, then I would have made $1,841,521.08. That's a return of over 6,000%. But between us,
01:47I invested a lot more than that. So now you understand the power of investing, I think it's
01:51time to jump into the details. Honestly, it's amazing how many people talk about investing,
01:57but don't actually show you how to do it. So I'm going to quickly walk you through how to invest
02:02in stocks on your phone. Of course, remember, I'm not a financial advisor. This is just the way I do
02:08it. And before you do any of this, make sure you have an emergency fund of three to five months of
02:13living expenses. The first thing on our list is to set up an account. A lot of people get stuck at
02:18this stage is there's a lot of different investment platforms out there and also different types of
02:22accounts. But trust me, it's much more simple than it first seems, especially now you can do it all
02:28online. When I first started investing, I had to phone up the stockbroker every time I wanted to buy
02:33a stock. Let's use the Trading212 app. I'm going to be using my son's account as my account's pretty
02:39messy as it has a bunch of free shares. He's actually been running an experiment on here for the last
02:44three months. But we'll talk about that in a bit. The account you open should be a tax advantaged one.
02:49This means you won't have to pay any unnecessary taxes. These are known as stocks and shares ISAs
02:55in the UK and Roth IRAs in America. I think the UK option is much better as you can invest up to
03:01Ā£20,000 a year without paying capital gains tax on your profits. And you can take out your money
03:06whenever you want. In contrast, Americans have to wait until they're old and retired. And they have a
03:12much lower limit of $6,500 per year. Feel free to use whatever app you like. This is just one of my
03:18personal favorites. Next, we need to deposit some money in order to start investing. Most apps make
03:23it pretty easy to deposit money. We just have to click these three lines and then select Deposit Funds.
03:29As you can see, this brings up a screen with lots of different options like Instant Bank Transfer,
03:34Bank Transfer, Debit Card, and what we're going to use, Apple Pay. Let's just put in 400 so we can invest
03:42in some stocks together. Feel free to invest whatever you feel comfortable doing. Curtis,
03:47I'm going to need your face for the phone. This next step is super important. Getting some free
03:55stocks. Since I was planning to talk about trading 212 anyway, I reached out to them to see if they
04:00would be interested in sponsoring this portion of the video. They agreed and they're offering a free
04:05stock worth up to Ā£100 to anyone that uses the code Tilbury when they create an account. Plus,
04:11you can get more free shares by inviting your friends. Both of you will get a free share as long
04:15as they fund their account. So don't waste your invites and invite brokies. And also, don't worry
04:20if you've already opened an account within the last 10 days. You can still use the promo code Tilbury in
04:26the app and receive your free share. Right, now we need to plan a winning strategy. The first thing we
04:32need to remember is that investments go up and down, so it's very hard to pick winning individual stocks.
04:37That's why I prefer to invest in all of them. You probably think this sounds a bit crazy, but stay
04:43with me. I love listening to music. I'm a big Deacon Blue and Queen fan myself. But whatever you like,
04:49if you've ever listened to the radio or use Spotify, you'll be familiar with the music charts. The better
04:54the songs perform in sales and downloads, the higher up they go in the charts. On the other hand, if a song
04:59drops in popularity and sales, then it drops out of the charts. This is almost exactly the same as
05:05investing in an index fund. All you have to do is switch out the songs for companies. Let's take
05:11the S&P 500 for example. This is a list of around 500 of the largest public companies in the USA. The
05:18big dogs being Amazon, Google, Apple, and Tesla. And just like the music charts, if a company does poorly,
05:25then they risk being removed from the list. Here's the cool part about an index fund. With just one click,
05:31you're not just investing in one or two companies, but in every single company on the list. So if one
05:37doesn't perform very well, your money's okay as you'll spread across all of them. So how can we put
05:42this into practice? Well, we need to automate our long-term investments. Remember I said my son had been
05:48running a little experiment for the last three months on his account. Well, he's been investing five
05:53pounds into the S&P 500 every day. Why five pound? Because that's about the average price of a Starbucks
06:00coffee. Automating your investments like this is a great idea as it means you can just set it and
06:05forget it. His portfolio is actually doing pretty well. As you can see in the green, his return so
06:11far is 36 pounds and 46 pence, and that's a return of 5.03%. Not bad for a little experiment. If you
06:19want me to keep you updated with this when it reaches the six month mark, let me know in the comments. To
06:24set something like this up, all you have to do is select pies and then press the plus icon. Now you can
06:29select whatever stocks you want to include in your pie. For this demonstration, let's just keep it
06:34easy and pick this S&P 500 index fund. By the way, look out for if it says accumulation or distribution
06:40in the brackets. Personally, I always go with accumulation as it reinvest your dividends back
06:46into the stock automatically. The less I have to think about, the better. Now let's tap add to pie
06:51and then the arrow button. If there was more than one stock in here, then we'd be able to change the
06:56percentages with this slider. Right, tap next and then auto-invest. This value projection is really
07:03awesome as it shows you how much money you could make based on historical averages. Of course, when
07:09you invest, you can get back less than you invested as investments can rise and fall, but it's still a
07:14great way to get an idea of how much you could make based on data-backed projections. I mean, say we
07:20invested 250 pounds a month for 31 years, you'll only have invested 94,000 of your own money. Your
07:27portfolio would be 1.14 million. If we expand this to 40 years, your portfolio would be 3.56 million.
07:37It's worth having to play around with this as it's quite motivational seeing how much money you can make
07:42with a relatively small amount invested per month. And to all the people in the comments saying,
07:47well, what about inflation? It will make your money worth far less. As long as you're investing
07:53and not just keeping your money in a bank account, then inflation is not something you need to be
07:57extremely worried about. Additionally, I increased the amount I was investing to keep pace with
08:03inflation. Now, let's pick some individual stocks. Although I wouldn't recommend that beginners bother
08:08with picking stocks, I know many of you are going to try anyway, especially since you've seen people make
08:13millions from the right meme stock that skyrocketed like GameStop. All right, so there's basically two
08:20ways to take a stab at figuring out what's going on in the stock market, technical and fundamental
08:25analysis. Those quick deal day traders are all about the technical stuff, poring over price charts and
08:31patterns, thinking they've got the scoop on how the stock's going to swing just by eyeballing the ups and
08:37downs. Now me, I'm more of a long-term player. I dig into the nitty gritty of a company's fundamentals.
08:45You know, the financials, who's steering the ship and how well known the brand is. I reckon that's
08:51where the real lowdown is for predicting a stock's long-term success. So I sift through income statements,
08:57balance sheets and cash flow statements. When I throw money into a stock, I'm in it for the long haul,
09:03at least two to five years minimum. To find stocks, simply click on the magnifying glass icon. Trading
09:09212 have made it incredibly easy to find stocks by providing various lists such as big tech, popular
09:16ETFs, banks and most owned. There's also lots more. Take a look when you find a bit of time. You can even
09:21go on the social feed tab and see different pies that other users have created and copy it for yourself
09:27with a single click. So you don't have to find the stocks yourself. On the stock page, you can see the
09:32price graph and by scrolling down, you can actually access all those important financial documents
09:38I discussed earlier. Now let's buy a stock. Tesla will do. Now this pulls up a page with a couple
09:44of different options. The first one is a market order. A market order is just like when you go to
09:49the supermarket and pay whatever the price tag says. A limit order on the other hand is like going to a
09:55boot fair and haggling for the best price you want. You can put in a price that you're willing to pay
10:00and if the price ever gets to that level then the app will purchase the stock for you. As a beginner
10:05that's all you really need to know. There's no point diving into the other options. Let's buy 400
10:10pounds worth of Tesla so I can show you how it's done. The final step is to press send buy order
10:16and boom we're now part owners of Tesla. So now you know all the steps and you've got a free stock with
10:23the link in the description. What's holding you back? Well it all sounds great Mark but isn't investing
10:28a bit risky? Well take a look at this. If you're investing a single amount every month from the age
10:34of 25 you would be around about here if you invested for around 30 years. Now if you waited 10 years
10:44this is the difference that will make to your growth. Somewhere around about here. Look at the difference.
10:50It's absolutely crazy. So start young. If you have a diversified portfolio of index funds and keep
10:57investing at a gradual rate each and every year then even if there's a stock market crash then
11:03historical data shows you should be able to endure the storm just like I did. If you want to know why
11:09net worth goes crazy after 100k then you can check out this next video but don't click on it just yet.
11:15Make sure to subscribe if you want to grow your wealth, okay? I'll see you over there.
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