So i've personally been using the Robinhood app for about four years now and honestly i feel like
they're a really great trading app to use but the problem in the past was that you had to do
everything manually meaning if you wanted to make a trade you had to get on the app or the desktop
and actually make it happen now the cool thing is is that they finally have automatic investments
and that's what we're going to be going over in this video i'm going to teach you how to make
those automatic investments happen and why you want to do it so stick around because this is a
really good feature that robinhood now offers so one of the features that robinhood has always had
is the ability to make automatic deposits from your bank account to your robinhood cash account
now this is just fine for instance if you wanted to have 500 bucks a month go from your bank to
your robinhood account but the problem is is that money just sits in your cash account until you do
something about it so you have to manually make those trades in order for that money to be working
for you but the cool thing about the automatic investing feature is that now you can actually
go through your individual companies that you own and you can set up recurring investments for those
to happen every single day every week bi-weekly or even monthly and then you also get to set exactly
how much money you want invested in those specific companies so this is really good for the type of
person who wants hands-off investing where you can just set it and then you really can forget it and
you don't really have to do much about it now as far as i can tell you do have to manually set up
each company that you want to have as a recurring investment so for instance if you had a hundred
different companies in your portfolio and you wanted all of those to be set up as a recurring
investment then you're going to have to go into each of those different companies and you're going
to have to manually set up how much you want to have taken out when you want that to happen so
for instance every week every month and then where you want that money to pull from in order for that
feature to be working on all of those shares that you own in that portfolio and obviously setting
that up for a hundred different companies would be pretty tedious but the point here is that most of
us aren't going to be doing that most of us are probably going to set up recurring investments
on just a few different companies or etfs inside of our portfolio so for instance if i just wanted
to have a hundred bucks a month go into an etf like for an s p 500 index then i would set that
up so that just a hundred dollars would go into that specific company or that etf and that's all
that i would be doing everything else would still be manual so as far as automatic investments go
the real reasons why you'd want to be doing this are very simple the first one just has to do with
having a more hands-off approach to the robin hood app so for instance if you just want to set it and
forget it then you can do that using the recurring investments now the other reason why you'd want to
set up these automatic investments is because of something called dollar cost averaging now
all this means is that for instance if you have a thousand dollars to go into the stock market
instead of just putting that money into the stock market tomorrow the market can go up or down and
it can fluctuate quite a bit now with dollar cost averaging what you do is you take that thousand
dollars and you'd average it out over a period of time so for instance if you did a hundred dollars
a month then for ten months you could stick in a hundred dollars into the stock market and that
would be dollar cost averaging to hopefully help you with some of the storms that could happen so
for instance if the market goes down it goes up obviously up is a good thing but mainly if there's
a correction in the market meaning there is a downturn then that dollar cost averaging can help
you and that's why these recurring investments are a good idea on that end as well now let's
just hop on my phone and i'll show you guys exactly how you can set up recurring investments
using the robinhood app okay so if you want to set up automatic investing through the robinhood app
there's a few different ways that you can access it now the first one this one happens to be right
here in the banner and this is just obvious but right in the middle of my screen you can see
automate your investing to make your money work for you that's the automatic investing so if you
just click that you'll go right into the main page where you can start setting up those recurring
investments now obviously the banner might not always be there so the other way you can do it
if you want to look up individual companies is you just go back into the main menu here and you
scroll down any of the different companies that you want to set up recurring investments with
so let's just pretend that i want to do this with god which is the second one down in the list
just click that and then as soon as you're inside of it just scroll down
until you see recurring investments and just click on that and that is how you can set that
up for that individual company now if you want to find access to all of them again you can
just go back into the main menu here and on the bottom right if you just click that little person
and then go into your main account settings and from here if you just click the investing tab
where it says balances drip and gold just click on that and then you're going to scroll down until
you see recurring investments which obviously we have zero right now so inside of here you just
click on it and this will give you access once again to all of the different companies that
you own so that you can set those up so at this point let's set up a recurring investment we're
just going to click the green tab at the bottom here and then once we're inside we're going to
have access to all of the different companies that we own so for instance if i wanted to set up
recurring investing for costco i'm just going to click on that here and now is when we actually set
it up so what we're going to do is we're going to start it let's go right into here and we're going
to select 2021 and we're going to go to january let's say the 15th and we're going to click done
and then from here let's say that we want to just do it every single month on the 15th of
every month now the reason it's saying the 15th is because we've already identified that january 15th
is when we want to start it so if it's monthly that's just obvious when that's going to happen so
we're going to click monthly here and we're going to hit continue now before we hit continue just
keep in mind right here where it says orders are processed between 10 am and market close and if an
order falls on the day that the market's closed it's going to be placed on the next trading day
so it's just going to trade that exact day that it hits unless the market's closed so we're going
to hit continue now and at this point i'm going to have to block out the different banks that i have
associated with my account but that's where you're going to see them here now i do have robinhood
buying power so let's just pretend that i want to use that cash account we're going to add that
to this recurring investment we're going to hit continue and then at this point we're gonna select
how much money we actually want to go into costco on that recurring investment so for instance if
i wanted to do a hundred dollars a month we'll just set that up and then we're gonna hit review
obviously it's going to be a hundred dollars per month because that's what we told it to do
now because robin hood allows us to buy fractional shares you don't have to buy a
full share of costco every single month when you're making those recurring investments
because that would require you to be paying over three hundred dollars because that's how much they
are per share and that's what's awesome about fractional shares is that it's a lot easier to
get into these companies like for instance amazon right now is over three thousand dollars a share
most of us don't have that much money to even buy one share so buying fractionally this makes it a
lot easier so at this point we're just going to swipe up to submit and that is all we have to do
i've now got a recurring investment for costco that's going to happen on the 15th of every month
and i've selected it to start on january 15th and that is exactly how you do it now once you're done
and you've set it up you can always cancel it or you can modify it so don't worry if you guys are
worried about anything like that you can always cancel or modify your recurring investments
anything like that so that you're not stuck with something that you don't want happening
now if you are new to the robinhood app i do have an affiliate link in the description below where
they'll actually give you a free share just for signing up so check them out if you guys do have
an interest now if you just found this channel i'm jason with honest finance and i make a lot
of videos on different topics that'll give your life and your finances more value so feel free to
subscribe if you guys are interested in that type of content but for now i will leave more robin
hood videos over here that you guys can watch but thank you for watching this video have a great day