Screen Recording of Investment Apps
So guys, I want to tell you something really really interesting. Right if I just open up this app on my iPhone, I’m going to put a screen recording over there so that you can clearly see it. In this one app I’ve been able to build it up to the point where I’ve got over £67,000 which is maybe around $80,000 and currently I’ve got a profit available of £3,700 and if I just jump over to another app in this one I’ve been able to build it up to the point where I’ve got over £41,000 in it and the profit that’s available for me to withdraw to my bank account right now is basically £5,000 which is around $6,000.
Lazy Passive Income Method
And I’m being completely honest with you when I say that this is potentially one of the laziest ways that I’ve been able to earn a passive source of income because I didn’t have to do anything when it came to making this money. All I literally did was open up the account, made sure that I knew exactly which thing to buy when I open up the account and the money that I put into it I was able to let that money go to work and it was able to grow even when I was fast asleep.
Millionaires’ Income Strategy
Most millionaires and billionaires all around the world use this method when it comes to making a passive source of income and in today’s article I want to share it with you. You don’t need to be rich, you don’t need to have a lot of money when it comes to doing this. If anything it’s better to start when you have a little bit of money so that you can grow it over time and before you know it you’re going to be able to make a decent amount of profit just like this that’s going to benefit your financial future. So make sure you stick around from start to finish because you’re definitely going to learn something that’s going to help you out.
Introduction to Stock Market Investing
All right so just giving you a quick overview of what is going to be involved with this method of building up a passive income. Essentially what you’re going to be doing is investing into the stock market and before you click off this video I understand that the stock market can seem really intimidating especially if you’re a beginner but it’s actually quite simple. All the stock market is is that it gives people, normal people like me and you, the ability to buy shares in various different companies all around the world.
How Stock Market Works
Basically the way that it works is that a lot of the big companies that we all use on a day-to-day basis are listed on the stock Market which means that we can own shares and become a part owner in those companies and when they do better the money that we put into it rises and of course it also works in the reverse way where if they don’t do really good in terms of their financials then the money that we put into it is going to go down.
Addressing Concerns About Losing Money
And again I’m sure that all of you are probably thinking “Sam I clicked on this video because I want to make a passive income I don’t want to lose money so what exactly are we talking about here?” Well stick with me because I’m going to explain the best way to invest in the stock market where your money is not really at risk as long as you’re aware of exactly how to do it and of course nothing I’m saying right now is financial advice. All I want to do is educate you guys on what I wish I knew before I got started because I would have been able to make a lot of money a lot sooner.
Two Main Ways to Invest in Stocks
Now when it comes to investing into the stock market there’s two main ways that you can do it. The first way is that you can buy into individual companies and the second way is that you can buy into a group of different companies all at the same time and in my own personal opinion I would say that one of the number one mistakes that most beginners make is that they’ll see a company that they like, they’ll see a company that they use and because of that what they’ll do is that they’ll put all their money into that particular company but because they haven’t educated themselves on how to look at the company’s financials when it comes to the balance sheet when it comes to the profit and loss statements and some other things when is an update that comes out about that company and it’s not so good the stock price goes down and that’s where people end up losing money.
Personal Experience with Individual Stocks
And this is a mistake that I made myself when I first got started as well because what I would do is put money into the companies that I was using. If I just jump onto the PayPal stock chart this is one of the companies that I put money into. So in 2020 I put a decent amount of money into PayPal and as you can see it was going up, it was going up and because of that I was able to make a lot of profit but because I didn’t really have the time when it came to always monitoring exactly how PayPal was performing in 2021 the stock price ended up going down. I was able to quickly notice it and take my money out but as you can see if I left my money in there I would have lost all this money and ever since since 2021 PayPal hasn’t recovered.
More Examples of Stock Performance
And this is a similar thing that happened with Alibaba. This is another company that I’ve used with my e-commerce businesses so because of that I put a decent amount of money into it again in 2020 as you can see same thing happened in 2021, 2022 so on and so forth the stock price went down and it hasn’t recovered ever since and this has happened with countless amounts of different big companies out there that are generating millions of millions of dollars. The stock price even for Shopify has also gone down and hasn’t recovered ever since since it’s highs.
Recommendation for Beginners: Index Funds
So when it comes to investing into the stock market as a complete beginner I wouldn’t recommend using this method. The method that I would recommend is to buy into an index fund. Now I believe I’ve already touched on what an index fund is in this video but essentially what it is is a group of different companies that when you buy into an index fund you’re owning a small portion of all of those different companies that’s in that Index Fund.
Explanation of S&P 500
There’s different funds out there that are tracking different things e.g. the most popular one out there is the S&P 500. The S&P 500 is made up of the top 500 and 6 companies that’s in the United States so when you’re buying into the S&P 500 you’re owning a portion of Microsoft you know companies like Tesla, Google, Amazon so by doing it this way you don’t have to buy into all of these different companies and monitor their financials you’re kind of trusting the managers of the index fund to make sure that they’re removing companies that are underperforming adding companies that are performing well which means that you’re going to be able to sit back and earn a passive source of income.
Benefits of Investing in S&P 500
And to illustrate my point when I say that investing into something like the S&P 500 can be beneficial is because if we just look at the stock chart for this ever since the late 1990s the price of the S&P 500 has gone up. Yes there’s been these dips now and then but generally speaking the price of the index fund has gone up which means that if you put your money into it at any point in time you would have been able to earn a decent amount of profit and you would have been able to get paid out a dividend every 3 to 4 months.
Lazy Way to Earn Passive Income
And that’s why I believe this to be one of the laziest ways to earn a passive source of income because again you don’t have to do anything as long as you put your money into an index fund just like this and there’s different ones out there that are tracking different things and I’m going to touch on that in a moment but by putting your money into an index fund just like this it’s not going to be eaten up by inflation you know just sitting in your bank account you’re going to be able to earn something on it put it to work so that it can bring you back more money and bring you back more profits.
First Step: Signing Up with a Broker
Now you’re probably wondering “Sam everything that you’ve broken down in this video so far is super helpful and I’m ready to start making a passive income but how exactly do I get started what is the first official step that I need to take?” Now the first step that you need to take is that you need to sign up to a broker and one of the easiest ways to sign up to an investment broker is to do it through an app through your phone.
Recommended Investment Apps
Now which one you’re going to pick is going to be dependent on which country you’re living in and what restrictions that particular app has. The ones that I normally recommend that you check out is either going to be Trading 212, Invest Engine or Mumu and the main reasons why I tend to recommend these ones is because number one I use them myself and number two they’re regulated in the countries that they operate in which means that your money that you put into it is going to be protected if anything happens with these particular apps.
Importance of Money Protection
So that’s definitely one of the first things that you need to consider when it comes to investing into something like an index fund for you to make a passive source of income. First and foremost you want to make sure that whatever app you’re going to use your money is going to be protected. The mistake that most people make is that they will find an app that gives them some sort of bonus or something like that but the money isn’t protected something happens they end up losing everything and that’s not the situation that you want to be in.
Demonstration of Trading 212 App
But the quickly show you how each of these different apps work I’m going to log into every single one of them and I’m going to show you how easy it is when it comes to buying into something like the S&P 500. So if I just start off on Trading 212 what I’m going to do is come over here to the S&P 500 then what I’m going to do is click on buy and once you’ve topped up your account which you can do through either Bank transfer or debit card payment you’re just going to come over here for now I’m just going to buy £100 worth of the S&P 500 click on review order click on send buy order and just like that my order has been placed and because it’s Sunday right now that’s the reason why it’s saying that it’s going to execute the order in 17 hours because that’s when the actual Stock Market opens.
Demonstration of Invest Engine App
So that’s how easy it is to buy into something like the S&P 500 on Trading 212. Let me just jump over to Invest Engine and show you how easy it is over there as well. Okay so over here it works in a similar way as you can see I’ve topped up £2,000 in my Invest Engine account and when it comes to buying into the S&P 500 I’ve already created the portfolio over here and I’ve added some other index funds as you can see so I’ve added the all World Index Fund the developed fund index fund and the developed Europe fund as well.
Buying S&P 500 on Invest Engine
I’m not going to go into details about all of the different index funds out there that you can buy into but let’s stick with the S&P 500 for now. What I’m going to do is just click on invest just like this I’m going to change this to my cash account and for now I’m just going to buy let’s say £500 worth of the S&P 500 and these other ones but as you can see it’s a small percentage of the other ones and then I’m going to click into confirm. Okay perfect so the order was successfully submitted for that as well.
Demonstration of Mumu App
And finally I just want to quickly show you how the Mumu app works. So as you can see I’ve opened it up what I’m going to do is click on trade over here I’ve already selected the S&P 500 with this one I only want to buy around $140 as you can see over there so all I literally need to do is just click on buy just like that and as you can see the order’s now been submitted and when the Stock Market opens again in the morning that’s when my order is going to be executed.
App Availability and Sign-up Bonuses
Now with these different apps that I’ve shown you so far in this video they work in different locations they either work in the UK the US you know places like Canada, Australia so check the links in my description down below and have a look at which app is going to be applicable to you depending on your location and also remember as well with all of these different apps that I’ve shown you by using the links in my description you’re going to get some sort of a sign up bonus or you’re going to get some sort of a free share when you use those links so make sure you check the description down below.
Dollar Cost Averaging Strategy
But one very important point that I want to share with you guys when it comes to the strategy that you should be using when it comes to buying into all of these different index funds is that you want to use the concept of dollar cost averaging and what this means is that you’re going to buy into the index funds every so often whether you want to do it twice a week you know maybe once a week once every two weeks it’s completely up to you and this is going to be an automatic thing that you’re going to do as well you’re not going to look at the price of the stock market you’re going to buy into it whether it’s up whether it’s slightly down.
Long-Term Investment Approach
And the main purpose for dollar cost averaging is that if you’re able to be consistent with it you’re going to see your money grow over time even though yes everything that I’ve shown you in today’s video is a great way to earn a passive source of income you shouldn’t treat it as a get-rich quick scheme. All it really is is a great way for you to invest your money rather than having it sit in some sort of current account where you’re going to earn 0.00001% interest every couple years or so by putting your money into an index fund like this you’re going to be able to see greater returns with minimal risk.
Offer for Detailed Step-by-Step Video
But of course just like with anything else in life there’s a lot more that goes into the actual step-by-step process I just wanted to give you guys the overview of what I wish I knew before I got into this because it would have helped me make a lot of money a lot sooner but if you wanted me to make a detailed step-by-step article walking you through everything that you need to know then put in the comments down below “do the invest in article” and I’ll get onto ASAP.