top of page
  • lukeparsons5

3 Steps To Make Passive Investing SUPER EASY

Investing doesn't have to be hard work if you don't want it to be. Passive investing is the most accessible long-term strategy to build wealth slowly over time, and it is much easier than you think.

In this article, I will share three simple steps on how to make the start of your investing journey super easy!

Use A Practice Account

If you are not familiar with trading apps, it's probably a good idea to use a practice account to get used to the layout.

All those charts and numbers can look a bit daunting if you're not used to that sort of thing. But if you start off with "fake money" on a practice account, it will help you get more comfortable with how it works. The last thing you need is to make a mistake at the beginning and discourage yourself.

Most brokers have a practice account, however the one I'd recommend is Trading212 as that is the one I use.

Practice for a week, then start using the real one!

Set Up Automated Payments

Setting up automated payments will make it a lot easier for you to invest consistently, as it will take out all of the admin for you.

You can set up a standing order from your bank to your broker account, and you can then automate your trades as well if you are buying the same funds/stocks every time!

This is the definition of passive investing!

Forget Stocks, Just Buy Funds

The beauty of Index Funds & ETF's is that they expose you to a vast amount of companies and industries, without ever having to look at a balance sheet.

Pick a popular fund, such as one that tracks the S&P 500 or the FTSE 100, point your automated payments there and watch your wealth build over time. It really can be that simple!

You wouldn't ever have to worry about analysing or researching individual stocks, just sit back and let compound interest & the stock market do its thing!

These Are The Baby Steps To Financial Freedom

The first steps into something new are always tentative, you probably won't feel 100% comfortable to start with and that is ok, I was also sceptical at the beginning!

I had built up a lot of money that was gathering dust in a savings account, and I didn't want to lose it. You'll probably feel the same, which is why you should do as much research as possible to give you the confidence to dive in!

Over time you will see you aren't losing loads of money and the world isn't going to end!

Passive investing truly is for everyone, and your destination of financial freedom is now three steps closer!

If this article helped you in any way, please consider buying me a coffee on Ko-Fi. All coffee's will be reinvested back into the website and not used for latte art.


bottom of page