📈 How to Start Investing with Robinhood

Mayor Veals 💎
Apr 4
4 min read

Let’s be real — nobody taught us how to invest in high school. They taught us the Pythagorean Theorem but not how to build generational wealth. 😤

So let’s fix that. This is your no-fluff, step-by-step guide to getting started with Robinhood, one of the easiest apps for investing in stocks and crypto.

We’re breaking this down like you’re sitting next to your big cousin who actually wants to see you win. 💯

🥇 Step 1: What Is Robinhood, and Why Should I Care?

Robinhood is a free investing app that lets you buy stocks, ETFs, and even crypto (like Bitcoin). You can start with as little as $1. That’s less than what you spend at the corner store.

Before Robinhood came out, folks had to pay $5–$10 just to make a trade. Now it’s free — which means people like us can actually get in the game. That’s called the Robinhood Effect.

📲 Step 2: How to Set Up Your Robinhood Account (Takes 5 Minutes)

Go to Robinhood.com or download the Robinhood app on your phone.
Hit “Sign Up” — you’ll create a username and password.
Enter your info: name, address, birthday, Social Security number (yes, they need this for taxes).
Answer some quick questions about your job and investing experience (you can be honest and still get in).
Link your bank account or debit card using Plaid (it’s secure). You can even use Apple Pay.

🎁 Bonus: You get a free stock just for signing up. Could be worth up to $200.

💸 Step 3: Deposit a Few Dollars (Yes, That’s All You Need)

Even if you just start with $10 or $20 — it’s about building the habit.

Open the app and hit the “person” icon in the bottom right.
Tap “Transfers” and link your bank or debit card.
Tap “Deposit Funds” and choose how much to send.
Robinhood gives you instant buying power (so even if your money hasn’t landed yet, you can invest now).

💡 Pro Tip: Make sure the money is actually in your bank account, or your deposit could bounce.

🧠 Step 4: Learn How the Money Is Made

There are 2 main ways you make money investing:

Asset appreciation (the stock goes up over time)
Dividends (some companies pay you just for owning their stock)

📈 Example: If you buy into a company like Microsoft at $100 and it grows to $150 — you made $50. Simple. And if they pay dividends, you’ll get a little extra on top.

🔥 Step 5: Start with the S&P 500 (This is the GOAT Move)

If you don’t know what company to pick, invest in the S&P 500 — it’s like owning a little piece of 500 of the biggest companies in the U.S., all at once.

Robinhood makes this easy with a fund called VOO (Vanguard S&P 500 ETF):

Tap the search icon.
Type “VOO” or “S&P 500”.
Tap Trade → Buy.
Type in the dollar amount (e.g., $25) and swipe up to confirm.

📊 Bonus: Historically, the S&P 500 returns about 10% a year on average. That’s better than any savings account.

🏗️ Step 6: Set It and Forget It

If you want to build real wealth, don’t just invest once — make it a habit.

Use Recurring Investments to automatically invest $5, $10, or whatever each week.

Go to the stock or fund you want.
Hit Buy → Recurring Investment.
Pick how often: weekly, monthly, etc.
Set your amount.

That’s called Dollar-Cost Averaging — it smooths out the highs and lows of the market over time.

🧾 Step 7: Track Your Progress (Like a Boss)

You can track your:

Total Return: how much profit you’ve made
Daily Changes: how it’s moving today
Dividend Reinvestments: turn dividends into more investments automatically (enable this in settings)