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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.

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The average return over this time period was 11.23% per year.

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So if I'd have only invested $250 per month during this time,

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That's a return of over 6000%, but between us, l invested a lot more than that.

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So now you understand the power of investing.
I think it's time to jump into the details.

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Honestly, it's amazing how many people talk about investing,

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but don't actually show you how to do it.

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So l'm gonna quickly walk you throughhow to invest in stocks on your phone.

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Of course, remember, I'm not a financial advisor.
This is just the way I do it,

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and before you do any of this,make sure you have an emergency fund of three to five months of livin g expenses.

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The first thing on our list is to set up an account.

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A lot of people get stuck at this stage,as there's a lot of different investment platforms out there
and also different types of accounts.

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But trust me, it's much more simple than it first seems.

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Especially now you can do it all online. When I first started investing,

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I had to phone up the stockbroker every time l wanted to buy a stock.
Let's use the Trading app.

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I'm gonna be using my son's account,as my account's pretty messy,
as it has a bunch of free shares.

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He's actually been running an experiment on here for the last three months,

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but we'll talk about that in a bit.

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The account you open should be a tax advantaged one.This means you won't have to pay any unnecessary taxes.

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Feel free to use whatever app you like.This is just one of my personal favorites.

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Next, we need to deposit some money in order to start investing.

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Most apps make it pretty easy to deposit money.

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We just have to click these three linesand then select deposit funds.

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As you can see, this brings up a screen

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with lots of different options like instant bank transfer, bank transfer, debit card,
and what we are gonna use, Apple Pay.

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Let's just put in 400,so we can invest in some stocks together.

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Right, now we need to plan a winning strategy.

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The first thing we need to remember isthat investments go up and down.
So it's very hard to pick winning individual stocks.

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That's why I prefer to invest in all of them.You probably think this sounds a bit crazy,but stay with me.

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but whatever you like, It you've ever listenedto the radio, or used Spotify,
you'll be familiar with the music charts.

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The better the songs perform in sales and downloads,the higher up they go in the charts.

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On the other hand, if a song drops in popularity and sales,then it drops out of the charts.

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And just like the music charts, if a company does poorly,then they risk being removed from the list.

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Here's the cool part about an index fund,with just one click,

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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,

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This is almost exactly the same as investing in an index fund.

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All you have to do is switch out the songs for companies.

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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.

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And just like the music charts, if a company does poorly,then they risk being removed from the list.

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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.

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So if one doesn't perform very well, your money's okay,

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as you are spread across all of them. So how can we put this into practice?

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Well, we need to automate our long-term investments. Remember I said my son had been running a little experiment for the last three months on his account.

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Well, he's been investing small amount into the S&P 500 every day.

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Automating your investments like this is a great idea as it means you can just set it and forget it.

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His portfolio is actually doing pretty well. As you can see in the green.

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until... The global economy will contract by 3% this year.

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The worst downturn since the Great Depression. Surely this is the end of the stock market,

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but as things reopened, the market soared 27% from its low, setting new records.

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and that's a return of 5.03%. Not bad for a little experiment.