This Is How To Become A Millionaire: Index Fund Investing for Beginners

hi guys it's mark so did if you save two hundred dollars per month at an eight percent annual return then in 45 years you would have over wait for it one million dollars to be honest when someone first explained this was

possible by investing in index funds i hardly understood a word they were saying it was like they would speak in a different language today i thought it was about time that i made the video that i wish i'd seen when i was younger and explain everything step by step and because i like people that

practice what they preach i'm gonna be investing ten thousand dollars of my own money during this video so you can see exactly how it's done just a quick disclaimer though i'm not a financial advisor i'm a businessman and this is just some of the real life strategies that have worked for me personally i

always thought of index funds as my backup plan if my businesses hadn't been successful then i would have become a millionaire anyway through these investments just remember if you like the video then smash the like button as it really helps push this video out to more people and also consider subscribing if you want to grow your

wealth part one uncovering the lies so let's cut to the chase you've been put a major disadvantage people have been telling you lies about investing all of your life for instance at school when i was growing up i remember asking my teachers about investing and they always

said it's just for rich people as they can afford to hire professionals to do it for them for the longest time i believed investing wasn't for me because i wasn't a pro and i didn't have much money and i thought i wouldn't stand a chance then we got friends one of mine said i'd have to look at all the

financial newspapers learn how to read the charts and according to him it just wasn't worth my time and on top of this every time i mentioned investing to my family they seemed so scared because they thought it's the most risky thing in the world and not for normal people my dad even said if i started investing

i'd lose all my money can you believe that these lies are exactly what the experts want you to believe as they know that index fund investing is extremely easy to do you don't need much money to start the risks are pretty low and on average it will make you more money in

the long term the dark truth is that the average actively managed fund returns two percent less a year than the market in general this means that professionals on average are doing worse than index funds and even if they end up losing you money they still charge you fees no

matter what now according to my favorite film the matrix you have now taken the red pill and you've woken up to the truth it's now time to move on to part two understanding the game i know when i first started investing i felt like i was going to make so many mistakes but

once you understand their language it all becomes so much easier and that's what we're going to be talking about in this part so i've been banging on about index funds in many of my videos so i think it's about time i explained what they are and why they're so cool i'm a big football fan and if you have ever

followed any sports you'll be familiar with a league table like this the better your team performs the higher up they'll be on the list but on the other hand if they do really badly they might be removed from the league entirely this is almost exactly the same as an index all

you have to do is switch out the teams for companies let's take the s p 500 for example this is a list of the 500 best performing public companies in the usa the big dogs being amazon google apple

and more recently tesla and just like a league table if a company doesn't perform well they're at risk of being removed from the list hasta la vista baby the idea of an index fund is to be a little bit sneaky as it allows you to invest in every single company on the list with just

one click it's a bit like a friend of mine who picks a different football team each year he just wants to pick the winner every time so investing in index funds means that even if a few companies do terribly then it's balanced out by the companies that are doing extremely

well the average return on the s p 500 over the last 10 years has been 13.6 now that is higher than usual but get this no one has ever lost any money if they've bought and held an s p 500 index fund for more than 20 years so if

this is so foolproof then why do people still buy individual stocks well personally i like to do this just for a bit of fun i also think that some companies are currently working on awesome technology for the future but aren't making a lot of money at the moment so they won't make the cut into

the popular index funds so now and again i like to invest some extra money into these up and coming companies so i don't miss out and that reminds me we bought currently giving away four free individual stocks if you want to pick them up i'll leave the link in the description and for everyone that's