what is up everybody my name is gifford
and welcome back to another stock market
video where i try to make money from the
markets
this video today is aimed at the person
who hasn't even started investing
so i'm going to go with you today and
guide you on how you can make
your own portfolio and have a thousand
dollars after one year while there's
many platforms the one we're going to
use
is sharesies so because this is a
beginner video we're not going to talk
about really the fee structure
or anything about the companies and
in-depth analysis
or any metrics so much we're just going
to basically look at the overall plan of
investing
and how to put a plan in place how to
follow that plan and really go after the
goal
of having one thousand dollars and being
able to grow that money
long term so a lot of people might not
think a thousand dollars is a lot of
money but it's all about
figuring out a goal and start your
investing journey so therefore you can
prepare for financial freedom
hit like to support the channel and if
you're interested investing feel free to
hit subscribe what that said let's get
on with this video
one of the reasons i started stock
market investing while i thought it was
risky is actually that the term deposits
that the money that you put
into the bank to then grow is pretty low
as you can see here it's only returning
after one year 1.2 percent
and the crazy thing is while you put
your money into these banks these guys
here are probably investing into the
stock market and getting a much bigger
return so popular fund that people start
investing in when they first get into
the stock market which is really safe
and it's a broad
index fund is the smp 500 and here just
looking at google
um the average return of the s p 500
since its inception from 1926 to
through to 2018 has been approximately
10 to 11
there's a lot of numbers um different
numbers between 8 19 11
but i'm just going to say the average is
10
just to make it simple for this video so
if we're trying to build a 1 000
portfolio for our first year what we
want to do is work backwards because
that's how i find it's a lot easier to
work backwards
so we'll type in 1 000 and we're going
to divide that by 52 weeks
this then gives us 19.23 but we're gonna
round that up to twenty dollars a week
so what we're gonna try to do to build
this amount we need to save twenty
dollars a week and invest it into the
stock market so in the screen here i'll
put in the description is a compound
interest calculator
and basically this is going to be what
motivates you to invest into the stock
market
this is going to show you how money can
grow if you invest
over a long period of time so with
personal finance 101
if you invest your money it can compound
so that money will grow
even if it's a small amount over time as
you get serious about investing you can
then
up that from forty dollars to sixty
dollars to even a hundred dollars one
day if you really wanna start
compounding and growing your money long
term so we're going to be starting with
zero dollars as our initial investment
we're then going to go to monthly
contributions
and we're just going to say four weeks
because that's about a month so that's
eighty dollars so
twenty dollars times four is eighty
dollars and for the length a year we're
just going to put in 1 and our estimated
interest is just going to be
the market average which is 10 so we're
going to leave the interest rate
variance range empty
so we're going to come down and the
compound frequency we're going to leave
that
on annually and hit calculate so we've
now got the result
and we can see here that after one year
we just shy of a thousand dollars which
is fine because it's pretty close
already
and it's showing us 960 dollars so now
through the power of compound interest
this is where the magic starts if you're
a long-term investor
we're going to have a look now when we
extend this to saving from one year to
10 years
again just staying with 20 a week we can
hit calculate and see how much we get
so now after 10 years of investing we
can see here that we could possibly get
15
299 and we can see the compound interest
really starting to work in our favor
with the money that we've put in
and also the interest that we've been
acquiring and you can see
these start pulling apart as the money
that we're putting in and saving
is now making us money so let's just go
into a situation where if we were young
and we were 20 years old and we wanted
to invest for our future
just 20 dollars a week we can see and
change it now to
45 years and see what that looks like to
see the power of compound interest so
here in the results we can see here
after 45 years which is extreme but this
is really just to show you the power of
compound interest
we can see we've got just pretty much
under seven hundred thousand dollars so
with investing your money into the stock
market remember this is only twenty
dollars but it really shows you the
power of compound investing and
long-term stock market investing so if
you're investing just a thousand dollars
i highly recommend just using the
shizzy's platform
there is some fees in there but right
now that's not important it's all about
learning
um how to plan and how to start
investing into the stock market so to
open up an account with shares is
basically just hit up in the top corner
and hit sign up and then it brings you
to the screen and just pick what country
you're in so i live in new zealand so in
this page you're going to have to fill
out some of your personal details and
also you're going to need a form of
identification
we're not going to go over this you can
find some details of how to fill out the
application it's really easy online um
to be able to get you signed up
where she is and if you use my referral
link it'll take you straight here so
we're now into
sharesies and this is what it looks like
this is my portfolio it's just a little
over
two thousand dollars but yours will look
a little different it will probably be
empty so this is not financial advice
but i'm just going to take you through
now how i would invest in the s p
500 to try to get the returns that we
were talking about before
so to do that you come up here and hit
invest
and then you go to etfs and in the
search column you
click in there and type in usf at the
very top of the list it then brings you
to smart shares usf 500 fund so
if you leave click into that it will
then bring you the details of this fund
right here
so at the top this is the fund name
which is the smart shares usf 500 fund
and at the bottom here is the new
zealand stock exchange but right here is
its ticker symbol
i highly recommend that you continue
your learning and then look up videos on
what etfs are and just general stock
market investing videos
to help you on your journey so looking
at a few basic metrics here we can see
that the fund actually it's one year
price change has gone up by 27 percent
but the previous year has been really
good for stock market investing
um as for the future who knows what will
happen because that's just the way the
stock market is and if we look at the
five year graph we can see that the
stock price has been continually
trending up
and obviously there are some dips but if
you keep investing long term into
the fund you're going to be growing your
money and therefore growing your
portfolio and just to add for the extra
detail you can see this big dip here and
that was when the pandemic hit and you
can see that at 9.66
it kind of dropped all the way down but
as usual you don't panic sell
and you can see that it fully recovers
after about a year so you'll just hold
your money in there the stock market is
going to swing up and down but you're
going to do some more learning and you
will see that this is just normal and
this is what happens but it's all about
putting your money in investing for the
long term so that's enough for the video
really basic but it just highlights the
fact why it is really important to start
investing into the stock market and it
is actually a lot safer than what people
say
like all things there is a level of risk
when investing but
the more you learn um the more you'll be
able to get comfortable in the stock
market
and really as you can see that the low
term deposits at the moment
are pretty bad and you can achieve a
much higher return in the stock market
but if you invest over
in the long term then you're going to be
much better off so that's going to be
enough for this video
my name is gifford and i've been sharing
my stock market journey
since i've been youtube for just a
little over a year
if you want to follow and have a look at
what i do i have numerous brokerages and
different accounts and different
strategies i'm also learning as well but
i'm really keen to make a lot of money
in the stock market i'm trying not to be
too risky but i am
investing money that i can afford to
lose because that's one of the rules
for the stock market so feel free to
subscribe to follow my journey and also
to learn a few things
from someone that is starting out from
the beginning as well so may the gains
be with you and also don't forget to do
your own due diligence and the stocks
that you buy
also do a lot of learning and if you
want to hear more from me you can also
follow me on instagram which i'll put up
on the screen right now
with that said thank you and we'll see
you on the next one goodbye
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