6 Basic Steps on How to Invest Money for Beginners
This post was originally published on The Money Mix.
So … you’d like to learn how to invest your money, but are afraid the concept is out of your reach. Indulge me here for this next one — because you may be surprised!
You have a great job and make a good income. Your student loans are long gone, and you’ve even obliterated all of your credit card debt. Now you’re ready to save and invest.
But you’re not quite sure how to invest your money.
Well, I have good news. Because I’m going to introduce you to six simple steps on how to invest your money. It’ll be unlike many of the other “how to” articles on investing. In fact, this might just be your favorite one, because it’ll be so super-easy to follow and then implement.
But wait —
Before you even think about investing a dime, we need to set the foundation. Because without that, it’ll be somewhat difficult (if not totally impossible) to have a successful investment strategy.
So first I’ll list out the basic steps of investing, and then we’ll get into further detail to help you work through each one.
Here are the 6 steps:
- Work from your budget
- Determine how much you can save
- Decide on the best accounts to start with – taxable vs. tax-deferred
- Find the best investment options
- Monitor and rebalance
Okay, so some of the above terms may seem a bit — intimidating.
I get it. I’m not exactly a financial wizard either.
I mean, someone throws out a phrase like “index funds“, and my eyes immediately start to glaze over.
But have faith. Because there’s a method to the madness. This stuff can totally be learned — even if you don’t have a Masters degree in Finance. You just need a little bit of background, and some explanation using simple, everyday language.
So here we go.
Let’s get into the juicy details to get you started on your investing journey.