The first time I was told to invest was when I was in college.

Back then, it seemed so scary. Like something only the “tech bros” were into. After all, it was always a man who told me “you should start investing in the market, apple stock is worth so much” blah blah.

Meanwhile, I had no idea what the word “stock market” even meant, and I didn’t want to put money into something that seemed so much like a gamble. I had no funds to lose, no spare money, and worst of all no brain energy left to research which companies would be doing well or not.

Fast forward to current day me, and oh how I wish I had listened to their advice. But here’s the catch – not ALL of it. only the “invest now” part. But before we get into how to start investing, there are 2 misconceptions we need to clear.

My biggest pet peeve with the financial industry is how much Gatekeeping there seems to be.
The verbiage is unnecessarily complicated, pedantic, and high-key confusing to the average joe who’s just trying to grow their money.
No wonder people find it hard to start investing.

But the truth is, it’s actually much simpler than the gatekeepers want you to know.

First off, I must say that Investing is not a get rich quick scheme. I also don’t promote gambling with the market such as day trading – rather, a passive method to consistently grow your money.

The biggest point to remember: time in the market is more important than amount invested in the market. Even if you’re only investing $10 every month, doing that for a longer period of time gets you those compounding returns. And you can always invest more as you earn more in the future.

1. Lay the Financial Foundation
   • Create a simple budget by tracking your spending for 2 weeks. Income – Expenses – Savings/Investments – Wants. Knowing the flow of your money is the first step to financial success.
   • Have any major debt? Pay it off first before moving on to investing. This would be debt with a >7% interest rate.
2. Start with Retirement Accounts
   • If your employer provides a 401(k) match, max it out – you don’t want to lose out on “free” money. Consider opening a Roth IRA or HSA for extra tax advantages.
3. Build an Emergency Fund
   • Slowly contribute to a High-Yield Savings account for long-term emergency expenses. The guidelines I recommend are saving up to 3-6 months of living expenses.
4. Figure out your Investing Goals
   • Is your goal to retire early? Save for a big expense (ex. house, wedding)? Clarity on investing goals will help you decide how much to invest.
   • Decide on your risk tolerance. Factors such as age, investment goals, and personal money mindset all play a factor.
     • For example, higher risk tolerance may mean investing in more stocks versus bonds.
5. Begin Investing!
   • Open a brokerage account (E-trade, Fidelity, Schwab etc.)
   • Build a portfolio based on your investing goals and personal risk tolerance.
   • Invest in Index Funds/ETFs for diversification with low fees.
   • Automate the investments – set up weekly/monthly transfers from your bank account to the portfolio so you invest consistently.

If you’d like more clarification on the steps above, including a full breakdown of investing terminology and a PERSONALIZED investment plan based on your goals and risk tolerance, consider signing up for my investing coaching!

A one-on-one coach can provide you with guidance and accountability to finally begin investing with ease. I’ve done all the leg work so you don’t have to.