What's up you guys sasha here, this video is for people who are looking to start investing whether you are just getting in for the very first time. Maybe you've already started, maybe just thinking about putting money into the investment world for the very very first time. Maybe you've never ever traded stocks and shares. Maybe you don't even know exactly what all these different terms mean.

What the various jargon really means - i'm gon na explain it all as simply as possible in this video, unlike a lot of other videos out there that are either gon na try to sell you some kind of course, or some kind of tool, or something else like That i'm not going to do anything like that. I've worked in the financial services and banking industry, my entire career - hopefully i can just take all of this information out there about investing and just make it really really simple to understand for somebody who's just getting started. Let's dive right in first, let's cover just a few really important things to know about investing before we talk about the process and the ways that you can do it and the ways that maybe you should do it. The very very first thing you need to know is: investment is a way to manage and increase your wealth over time.

It is not something that will actually make you rich in the first place, a lot of people confuse it too. There's a lot of people out there that spout a lot of nonsense about how you can go and invest five dollars and become a millionaire or some other incredulous claim like that. Investments are a great way for taking money that you already have and managing it. Well, making more money on that money, making sure that it grows above inflation and that you retain and increase the value of that money over time.

But it will not help you earn money if you don't have much to start with, so make sure that you differentiate those two concepts. The second thing to note and a lot of people - just don't tell you this is if you have any kind of toxic high cost, even average debt. It is a really great idea to go and clear that debt before you go and begin investing people say: oh, you should go, invest first, because then the value of that money grows over time. But it's just basic maths.

If you have debt, that is costing you anything over five or six percent, or you expect it to begin costing that in the next few months the likelihood is that debt will cost you more than what you're going to be earning in the stock market. On average, the problem with debt is that the debt aprs can increase really sharply so something that costs you six or seven percent today could suddenly begin costing you 10 or 12 percent in just a year's time, and you can't really control that in many circumstances. So you just need to go and clear the debt that is likely to cost you more than what you would be making in your investment, because if you don't take an amount of money and invest it instead of repaying debt with that money and your investment is Growing in value at a rate which is lower than the interest you're paying on your debt, you're, just costing yourself money if you invested in the future after you've, repaid your debt and you've cleared the debt first, even though all the stocks are more expensive and potentially You've lost time, you've actually made more money by doing it. That way, certainly any credit card debt, any debt that you have on loans, especially on lower amounts which might be costing you 10, 15.

20. 25. Anything else like that. You need to go and clear it.

First, because that stuff is going to be costing you more than what the stock market will return in your investment things like mortgages, things like long-term zero percent deals like let's say you got a promotional offer on the car, where you're paying zero percent for five years Or some other thing like that, i wouldn't worry about that. Those debts are not toxic. Those debts are very low cost and any investments that you make will comfortably, on average over a long period of time, outperform the cost of those debts. So don't worry about the really big ticket items like that, but any debt that is going to cost you more than six or seven percent per year on average get rid of it first.

Two other things that are really important. One is don't, invest money that you can't afford to lose. Investing is very different to just using say a savings account in that any money put into the stock market or anything else that we're going to talk about. You can lose value very very quickly.

You can lose 30 or 40 overnight. It does happen. You should not invest money that you might need in the next few days in the next month in the next few months, because if you have a likelihood of needing that money and needing access to that money quickly, and you need to make sure that the value Of that money hasn't dropped, you need to go and put it somewhere else. You need to put it in a very easy to access account somewhere or some other fund that you can go and access very, very quickly.

Don't put it in something where the fluctuation of the value can be higher than you might expect? The second point is you should never invest in things that you don't understand. This is the best piece of advice i can give to you. This is the one piece of advice. I don't see anybody else out there giving and the reason nobody else gives.

It is because they're trying to sell you stuff they're, trying to tell you that you should invest in things. You don't understand because the returns are above average or because you can make so much money or because it's a get-rich-quick scheme make sure that when you are investing money, you know exactly where it's going exactly which bank it's going to be sitting with exactly what protections You have what level of risk you're carrying and what potential returns you're going to be getting on the back of it. Fundamentally, if you don't understand exactly how the thing you're investing money into works and exactly how it functions and why your money will rise over time. The likelihood is, you will lose your money.

This is what happens time and time again, don't invest in things you haven't actually understood, because otherwise, either people who do understand it will outplay you and you will lose money that way or worse still, you're going to invest in a scheme or some kind of program Which is either going to be fraudulent or some kind of pyramid scheme and you'll lose your money alongside every single other person. Investing in it understand what you're investing in one last point to know, just before we move on is investing is not the same thing as trading, and this is another very critical differentiation that you need to make. And okay, when you invest money in stocks, you are sort of trading, you will be buying and selling stocks funds etfs, whatever you're going to be buying, but there's a big difference between making money on the trading, so you're making money on the fluctuation of a position. So say you plan within a day or within a short period of time, to buy something, that's going to rise and sell.

It then buy. Something else is going to rise, you're going to short things. That is how traders make money and, if you're a beginner to the investment world, you don't want to get anywhere near the trading end of things, because it is an incredibly murky and incredibly complex world you're. Doing investments and investments mean buying stocks for the long term and only trading them whenever you need to go and change your position every few months or more frequently, if you fancy it, but generally speaking, you're going to be making trades relatively rarely compared to if you're Doing training now there are five different ways, broadly speaking, that you can invest in money and i'm only going to cover one of these.

But let's cover the five different ways before we actually get to the specifics. Now number one is investing in property real estate. So this is a very common way to invest money. This is certainly great once you have a lot of money and once you have different investment pots of money in various different types of assets, this is something that helps you not only be able to grow the asset value over time as property prices increase on average.

Over any time period, but also you're able to yield a return on it, while that happens, so the people who are living there are going to be paying you rent and essentially that income is on top of the asset value rising as well. And if you manage your portfolio of property well enough, you can make quite a substantial amount of money, but you need a lot of money to get started. I'm not talking about those kind of schemes where you can go and part own the property, or something like that. I'm talking genuine investment in actual property, so we're not going to cover it in this particular conversation, because that's something you'll do further down the line.

The second type of investment you can make is in commodities. Now commodities is any kind of physical goods that have a value attributed to them, where that value fluctuates over time. So the most common commodities people are aware of are things like gold or silver or platinum or other precious metals, other different kinds of raw materials and minerals and other things that people can buy, but there's lots and lots of other versions. Anything from oil to various underlying food components that people trade there's a huge amount of different commodities.

You can trade again. This is a more advanced topic that you probably don't want to get into. Generally, commodity prices don't rise like stocks or other similar things over time continuously, they do a lot more fluctuating. They do rise because of inflation and other factors, but there isn't a continuous growth factor in there.

In fact, a lot of commodities actually drop in price over time as they become more commoditized. The third type of thing you can invest. Money is business, so, if you're directly putting money into a specific business as an investor, whether that's a business, you run yourself, whether that's somebody else's business and you're, essentially providing the investment for it again. There's a high risk associated with it.

There's a lot of other things you need to know, and usually you need quite a lot of money in order to be able to get into that, so we're not going to cover that topic either. Another popular way of investing money is by buying bonds. Bonds are essentially loans that you provide to either a business or a government, and what happens is you provide them a loan of an amount of money that you agree and over time they will repay that loan plus either something like an interest or a fixed fee, Or some other way that that bond gets appreciated over time and usually bonds return, relatively low amounts compared to stocks and shares property or other asset classes. These are usually seen as very very safe if they are government bonds, because governments very very rarely pretty much never default and as a result, if you put your money into a government bond, you would probably have a very high certainty that you're going to get that Money back with the extra amount they're gon na be paying on top, but again this requires very large amounts of money to make any money, and the returns are so low that we're gon na be covering it.

In this particular conversation, we're gon na talk about stocks. Now stocks and various stock-based assets that we're going to get onto in just a second are essentially shares in companies, so you can become a shareholder in any company by buying any number of shares from that company and owning them. The reason people invest in stocks is because company values tend to rise over time if they perform well. So if a company does well, if their products are popular, if they sell more of those products over time, if they make more money over time, then the share price will rise as well, but there's a second element to buying stocks, which is, if you own shares In the company that pays dividends, then not only do you get the value of that stock rising over time, but you also get regular dividend payouts and many companies pay out very very well.

There are companies out there that pay, something like six, seven or eight percent. In just the dividend yield alone every single year, just from you owning one share, you'll get a six seven, eight percent return, so you might in some cases not even care whether the stock price will rise or fall over time, because you're, just investing for the dividend, Yields instead, now, just before we talk about the specifics of investing in stocks, there are two options that you have as an investor. You can either do the investments yourself and you get to choose exactly where you put your money, you get to decide which mix of funds or mix of different etfs or which mix of stocks you're going to own. You get to decide which provider you're going to be using all of that or you can go and use some kind of financial advisor or a wealth manager.

Now i'm presuming that you're watching this video, because you want to actively do the investment yourself, because if you don't you don't really need to understand too much. If you are the type who wants to go and use a wealth manager or a financial advisor, they will be making all the decisions for you. So you just go and hand your money over. You agree how much is gon na cost and they will manage your portfolio for you.

But this way of dealing with your money and with your wealth is definitely changing very very fast, because in the past the wealth manager would have access to a lot more instruments. A lot more ways of investing in money than you would ever be able to do by yourself. Today, you have so many more options. I'm going to talk about a lot of these options.

You can make so many investing decisions just by downloading an app and just by clicking a few buttons which you previously would have had to do a huge amount of paperwork for, and it would cost you a huge amount of money. Now you can do it for free for very low fees, so nowadays you don't really have the same advantages by using those wealth managers or various people to manage your money on your behalf and they cost quite substantial fees. So again, i'm not gon na be covering that side of the investing world. I'm gon na, be assuming that you're gon na be managing your own finances in this case.

First, let's talk about investing in stocks. Let's talk about the very, very simple basics. There are three main things as a beginner you're going to be buying and in fact most people continue buying that type of thing through their investment career and those three things are stocks or shares. They are funds or they're etfs.

I'm going to dive exactly into the details of each one and explain what they are so that you can understand and make your own decisions. Nice stocks, i've already covered they're, basically just shares in a company and when you're buying stocks you are buying and ownership of that company, most apps, most trading platforms are going to be coming to a little bit later, will allow you to buy not just single stocks Of a company but fractional stocks as well, and what this means is if a company stock is valued at, say four hundred dollars or one thousand five hundred dollars or something that is a very high amount of money. If you want to buy diversified portfolio of different kinds of stocks - and you want to own a lot of them, this allows you to not have to spend the 400 or the one and a half thousand pounds and buying one share. You can just go and buy a very small proportion of that company and just spend ten dollars or twenty dollars or, however much you want to invest and then be able to invest in a lot of different fractional shares of different companies rather than having to buy One share of each at whatever price that share costs now for funds.

There are three broad types of funds that exist: there are index funds, there are passive funds and there are active funds. There's other types of funds as well: more popular in other countries like in the us like mutual funds, which are sort of like a blend of index funds and passive funds. I'm not really going to cover them in very great detail, because they're actually not really that different in the way that they operate, but the three different types of funds work in this way, a fund is basically a way to invest in money in multiple different companies. Without having to actually go and invest in each company individually manually and the funds work in slightly different ways, an index fund typically tracks the index of whatever it is tied to.

So what this means is you go and put your money into a ftse 100 index or an s p 500 index your money gets distributed between all these different companies according to the value of that company within that index, now the index funds work slightly different ways. If you really care you can go and read, the specifics of each index fund understand exactly how they invest some invest in every single one of the companies within the index. Some only invest in say the top 95 or some emit companies that they think are about to exit. Some have other weird and wonderful ways of going slightly different, but basically speaking, you're investing in the average of that stock index.

A passive fund is very, very similar. In fact, index funds are a type of a passive fund, and a passive fund allows you to not just invest in things linked to a particular market index, so a particular trading exchange index, or something like that. It allows you to invest in other types of passively managed companies, so there might be a group of companies that are specifically related to a particular niche or a particular sector that you want to be investing. Let's say it's tech or something else like that.

You can then go invest in a passive index which has preset agreed rules which only invest in particular types of companies based on these rules. So if some companies go and grow in value or change their value over time, if other companies begin satisfying the criteria of being included in that particular passive fund, then essentially a passive fund automatically will go and rebalance your portfolio to account for the shares, moving and Changing and companies entering and exiting from the definition of the fund, the definition of being passive, simply means that there is an algorithm, a very simple set of rules. The fund follows there: isn't a human being or a company, or somebody else out there who actively makes decisions as to which companies should enter exit the funds on your behalf. All of this done is programmatically and you can go and check the rules before you go and put your money into it.

Active funds, as i just mentioned, are managed by actual people, and what this means is active funds aim to go and outperform the index or outperform the market or outperform whatever it is that you're trying to put the money into and a lot of people swear by These active funds, a lot of gurus out there will tell you that you should only invest in active funds, because there are people managing your money and those people must be incredibly smart. They must return extremely good returns over the years and there are some really really big names in this industry who will tell you that they return you 12 or 13 or some other incredible number. The truth is all of that is false. If you look at any smp report, let's say you look at the annual data they presented to the end of 2019.

Recently, if you look at large cap, active funds, 89 of them underperformed the s p 500. Large cap companies. If you look at mid cap 84 of active funds, underperformed just the index and small cap, again, 89 underperformed, the s p small cap index, and not only that but the s p, 500, just as a unit outperformed, the s p, 500 mid cap and small cap Indices as well, so what this really means is, if you just go and invest your money in something like the s p, 500, you are likely to be outperforming the vast vast majority of active funds and you don't have to pay the fees associated because typically active Funds cost quite a lot of money because they have to fund the companies that go and do all their analysis and try to actively change the distribution of your investments. Typically, those fees can be quite steep.

They can be as high as 0.7 or even 1. In the case of some funds, but definitely you're gon na be paying way, above the odds, to be able to make less money in most cases than you would. If you just invested in a simple etf or an index fund, there's lots of other types of stock based products that you can go and invest money in, but because we're talking about investment for beginners, this really doesn't apply. I'm talking about things like options, futures various other types of derivative products and leverage positions, so derivative products are basically just things that are not stocks and chairs themselves, but are some kind of function of that stock, so anything where you are not buying the stock.

But you're buying some kind of instrument which is in some way tied to the price of the stock, is basically called a derivative. That's what it means so anything where you're trading things about what the price of that stock is going to be at some point. In the future, with various caveats or anything like that, there's various different products, they're all together called derivatives. You don't want to be playing in that game until you are a seasoned investor or ever in some cases, and the last thing i mentioned is leveraged positions.

So this is trading things like cfd, so essentially trading on the value of something changing over time by borrowing money. Essentially, in order to be able to do those trades again, i'm not going to go into the details in this video. But this is something that you really don't want to be doing as a beginner investor, because it is an incredibly difficult thing to understand and involve substantial risks. So all of these things are just listed.

You really don't want to be putting your money into now. Really briefly, what is an etf? A lot of people get confused by this and there's some information out there. That's just difficult to understand. In the past there was a big difference between various types of funds and ets, but today in the electronic trading in the online world of trading, there is actually very little difference.

In fact, etfs are sort of the easier to manage easier to understand and easier to trade versions of funds if you're buying something like a vanguard. S p, 500 etf, basically you're buying an index which is based on the vanguard 500. But there's just a few. Very subtle differences like, for example, an etf can be traded continuously through the day.

An index fund is an older school way of doing investments which only gets traded once a day at the end of the business day at the price which it happens at close, an etf is something that is basically like a stock which trades in its own right And goes up and down in value over time, which is a combination of whatever underlying stocks, commodities of other things that make up the etf are, and you basically can go and buy and sell portions of that etf. Whenever you want for intense purposes, if you're doing trading and just starting out it's just a more fluid and a more simple way of being able to invest in money, make sure you go and check the index funds and etfs in terms of what the expense ratio Of those products is expense ratio is how much they will be charging you per 100. 1. 000.

However much money invested. So essentially, if you have a 0.5, for example, expense ratio that means per 100 pounds per hundred dollars invested you'll be paying 50 p per year. For the fact that that etf allows you to do the process of investing in all these companies automatically so go and check the prices of the different ones. There used to be a big difference in price.

Today, the difference is almost negligible and actually there's a lot of very, very cheap etfs out there that allow you to go and invest money in basically more flexible versions of index funds so go and check to see whether there's something that you like. The look of and that you want to go and invest in yourself now. The next question is: how do you actually go about buying these various stocks? Etfs funds whatever and the answer is relatively simple in the past, you would go and use your bank in a lot of cases, and today you can still do that. Some banks still allow you to go and do investments directly from their core banking platforms.

Revolut is a prominent fintech out there, where, from within your account with revolut, you can go and do some trades as well, but the issue with using a bank revolut or somebody else like that is typically speaking. Those trading platforms are not as good not as in depth and not as sophisticated as dedicated trading platforms that you can use instead. Typically, their stock numbers are very, very restricted, they're, going to be quite expensive in a lot of cases and have fees that are hidden that are very difficult to actually uncover and a lot of the details around how their app works are just often not going to Be as good, you won't get the same level information. You won't potentially get real-time trades.

You won't get the correct on the spot, exchange rate or something else like that. A lot of these things are very, very difficult to determine when you're, just looking at them. On the surface, generally speaking, if you're doing investments you'll, probably in most cases, do better by going and finding the right, app or website or company to deal with online because that's what they do, that's what they focus on. That's the core bread and butter of their business.

Today, these online brokerages have two massive benefits. One is they're incredibly simple compared to investing just 20 or even 15 years ago. It is so so easy to go and use one of these, and the second thing is as long as they're regulated by the fca and have fscs protection, the money that you go and invest into that investment will be protected now. The important thing to note is that the different brokerages that you can go and use online work slightly differently in how they are legally set up, and what this means is that the money you go and put into them will actually be protected in slightly different ways.

Depending on whether you're investing in one or the other and the amount that it's gon na be protected, too, will also differ so make sure you go and check with the individual providers to what they say. Their protection is before you go and put your money in now when you're going to set up an account with one of these brokerages and i'm going to come to exactly which ones are out there in terms of the most popular ones today, just in a second, You generally have two options and the two options are a general investment, just a core basic investment account and an isa account an isis stocks and shares account. I'm excluding all the other things that i just mentioned previously, like cfds and other things, because those types of accounts are not really for beginners at all. So when you're making that decision, the basic difference is this: an isa account is something that allows you to go and do investments tax-free, and what this really means is when you're making investments, there are two big taxes that will apply to any revenue gain you get From those investments, one is going to be the capital gains tax.

So if you buy shares at price x and then those shares over time growing value - and they are now worth y, then the difference between y and x, essentially, the amount of money that the value of the shares has grown is going to be subject to capital Gains tax and you will have to go and pay that tax to hmrc or your local government or wherever it is that you're in doing your investing. The second type of taxi you will have to pay is called dividend. Tax and dividend. Tax is something that you have to pay on any dividends that are being paid to you.

So if the companies that you're invested into pay you dividends, you will have to go and pay the dividend tax on those returns again to the hmrc. If your stocks and shares investments are done through an isa, those two types of taxes don't apply and they don't apply not only on the amount that you've invested, but also on any amounts that those particular investments have grown and developed into. So, for example, if the value of your portfolio grows over time, you then change the makeup of your portfolio to different companies. Those companies gains will also be tax free if you get dividends paid from those investments, and you go and reinvest those dividends, then the returns on those dividends will also be tax.

Tax-Free, a general investment account is very, very similar, except it doesn't come with. Those tax-free benefits, so if you're, a uk resident and you're trying to make a decision as to whether you should go down the route of an isa account for trading stocks and shares or a general investment account in terms of the tax savings, you would have a Massive advantage of going down the isorude, unless you're planning, to invest over 20 000 pounds, which is the total cap for isis, that you can invest in the year and remember that cap is not just for the stocks and shares is for any type of iso account That you hold so, if you've already put in that amount of money into a nice account somewhere else, you can't go and do it with stocks and shares. You will have to go and use a regular trading account. Instead, there are some minor restrictions like, for example, isis are only allowed to trade stocks that trade on one of the prescribed stock exchanges that the government mandates there's some restrictions on, exactly which companies and which types of products you can go and invest in, but those Restrictions are incredibly broad.

I would say that, for the vast majority of people you won't even notice that anything is restricted. You can still invest in a huge number of different types of etfs commodities, other types of products, so for most people that isn't really much of a restriction at all. Now what you next need to do, if you're planning to do an investment, is to go and open a brokerage account, and this is done in an incredibly simple way, if you're interested in doing that, i have a whole separate video where i go and open one Of the most popular trading platform accounts out there today with trading212, i'm going to put a link above up here and in the description below so after watching this video, you can go and check that out. If you want to see exactly how it works and exactly how the signup process works and how simple and easy it is, i take you, through step by step from the beginning, to having an account open and having money invested in the stock market.

So you can go and see exactly how all of that works. Now, let's go and quickly talk about the different brokerages that you can go and use to go and start your investing journey, and this has seen a massive amount of change. Just in the last few years in the uk in the us and other countries as well, and that's why it's become such an amazing opportunity for people who are new to investing to begin investing because it has become so much cheaper and so much easier. Let me cover the four main companies that people generally might consider for investments.

As i see it, there's lots of other ones as well, so make sure you go and do your own homework, but, from my perspective, the best ones or the most popular ones, certainly out there are number one trading two on two. This is the one that i personally use for my isa account. This is the one that i think is an incredible program, an incredible platform at the moment to be using. They are completely free to use for isis or general investment accounts and by completely free i mean there is absolutely no fee for signing up.

There is no fee for managing your account per year, there's no fee for making any trades. There's no commission, there is no increase on the spot rate for exchange that they charge they charge absolutely nothing and the reason they can do. That is because they make all their money on the cfd side of the business which some of the people who start in one of the general trading or the isa accounts will maybe eventually migrate to in the future. If they choose to do so.

So that's how their business model works and what this means is. It is completely unprecedented, but you can go and begin investing in the stock market absolutely for free with them. I have a link below if you're interested in doing that. The link allows you to go and sign up with trading two and two and get a free share up to a hundred pounds.

Generally speaking, most of them are probably in the 10 pound range or so, and i will also get a free share if you use that link to go and sign up. So, if you're interested in doing that, that's a very transparent disclosure right there go ahead and do it. If you just sign up without using the link, you will not get your free share. So, if you're interested in getting one go and use that link below, but let me just cover some of the other platforms as well, so that you get a fuller view.

The second one i want to mention is free trade. Now, free trade is slightly more expensive. Their general trading account is free, but if you're using it for the isa account that will cost you three pounds per month just to have the account open. You will also then, have to pay a 0.45 percent for an exchange fee on any trades that you make through the platform.

So this means, if you're buying stocks that are valued in dollars, you're going to be losing 0.45 percent of the money every single time you go and do a trade because of that difference in exchange rate. So you need to be just that much more careful when you're making trades, because each time you go and do a trade you're essentially going to be costing yourself money in the process. Now they do have a different account. That's called the free trade plus account where you have more stocks.

You have limit and stop orders, and it also includes access to the isa account and that costs you 9.99 a month. Almost all those features, if not all of those features, i'm not quite sure, are available trading 212 as part of their free account, but some people just prefer free trade that prefer the way it works and prefer having their money in there. So you can have a choice of using that instead, now, after those two brokerages, everything else follows a more old-school way of charging your money. So one of the most popular ones in the world and the uk is harder's lands down and they will charge you an annual fee of 0.45 of your portfolio for the privilege of you being able to use their investment platform.

On top of that, they will also charge you 11.95 per trade, so 11 pounds 95 for every single trade that you make unless you make too many trades, so the more trades that you make the lower that fee gets - and this applies both to their isa investment - Account and their regular investment accounts. So if you're going to invest your money with them, make sure you know about those fees and exactly what that's going to cost you versus the amount of investment that you're planning to make the last one on my list is aj bell, another very, very popular program. They're very, very similar to hargreaves landsdowne. They charge you 0.25 for the privilege of having your money invested through them per year, and then they also charge you 9.95 per trade and again that number goes down over time.

If you make a lot of trades every single month and the next month, the cost of those trades is going to be lower. So, whichever one of those options you choose, it's very, very simple: you go and pick the platform of your choice. You can create your account, you upload an amount of money into your account and then you go and just select which thing or mix of things you want your money invested into now in terms of what you want to invest in that's a whole massive separate topic. I'm not going to cover all the details in this video, i'm not going to go into the specifics of exactly which types of index funds or which types of shares you might want to buy.

Generally speaking, that decision is up to you and anything that i give. You cannot be qualified as advice, because i don't know your personal circumstances, so you need to go and do your own homework. Most beginners will probably benefit by being relatively cautious with their investment, so that probably means for most beginners. You might go and start investing by putting some money into something like an index fund or something that tracks a large number of different companies over time, where the risk that you carry is going to be much lower because your investment is going to be distributed into A hundred or hundreds of companies, instead of just one or two, that you've chosen and then you can go and begin understanding the way that the process works better, seeing how the value of your portfolio changes over time and make better smarter investing decisions over time.

Now, a few really key aspects to managing your investments that are really important to note. If you're, just starting out, if you're a beginner in investing, are this one, you need to make sure that you go and reinvest any amount of money that you are being paid out whenever you have an investment portfolio. So if your account gets paid dividends, if some stock that you held for some reason got paid out to you as cash, let's say the company got acquired or there was a stock split or some other thing. You might find that every now and then you have some cash landing in your account, so it's really important to go and make sure that you go and reinvest that money, because cash doesn't rise in value.

It just stays flat. Sometimes some investment companies will allow you to do things like set up a pie or a way of being able to automatically reinvest the money that comes in according to your predetermined rules. In other cases, you won't be able to do that so just regularly. You're going to need to go and check whether any money is turning up and go and manually reinvest it back into whatever it is that you want to go and make your investments in.

The second thing is, you need to make sure that, over time you manage your portfolio, a set of forget strategy, generally speaking, will work if you're just investing in index funds or things like that. But if you're investing in anything else, any funds, because those funds tend to change over time, if you're manually picking your stocks, you need to make sure that you go and manage that portfolio, because the stocks that are good and that are likely to rise in value Today are probably not going to be the same stocks that are going to be good and likely to rise in value in 50 years time make sure you go and look at your portfolio and regularly manage it as you see fit the last thing - and this is An incredibly important piece of advice for investing is, if you're planning to put money into investing. It is not really going to be very beneficial by just doing a one-off investment of 100 pounds or a thousand pounds or, however much you want to put into it and then just sitting there waiting for something to happen in the future. The way that you will be able to build and grow your wealth over time is essentially by continuing to do that, investment on a regular basis.

So you need to commit to some kind of schedule where, whenever you come into surplus money or whenever your budget permits you to do it, hopefully every month, if not, whenever there's a bonus payout or some other event, where you can come across money that you want To then put into investments, you need to go and continue adding the money to your investment account, because without adding more money over time, the growth you're going to experience is going to be relatively slow if you're planning to invest for the long term. The idea here is that, whenever you do have incremental funds that you want to go and put in your investment account, you need to go and move them yourself and make sure that they're invested properly in things that you want to invest them into. I hope you guys found this really useful if you have make sure you leave a comment below and tell me what you thought. I'd be really interested to hear from people who are just getting into the investment world for the very first time.

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