Do you want to invest but just don’t know how to start?
Do you find the idea of investing daunting, and want an easy, step-by-step guide you can follow?
You’ve come to the right place! In this video, I’ll show you how you can start investing today in 7 easy steps!
1. Decide the Investment Amount
You don’t need a lot of money to start investing – even $50 a month can go a long way!
Look at your budget (or create one) and see where you can cut down your spending. Work hard to find all discretionary expenses you can reduce, so you can start investing that money.
2. Figure Out the Right Investment Account
There are many different types of accounts you can use to invest, like brokerage accounts, retirement accounts, college savings accounts, and more! Based on your needs, choose the account that’s right for you.
For example, if you are investing for retirement, a 401k account or an IRA would be a good option.
If you’re investing for your kids’ education, a 529 account is the right choice.
When investing for other long term goals, a regular brokerage account might make the most sense.
3. Open an Investment Account
Once you know what type of investment account you need, the next step is to actually open that account.
Look for an account that offers a good selection of investment options, has no minimum balance requirements, no monthly fees, and low – or no – commissions.
The actual process of opening an account is very simple, and can be done in just a few minutes online or by visiting a branch of the brokerage firm you chose.
4. Fund Your Account
Once you open an account, you would need to transfer money into it to start investing. You can do this by depositing a check, or by making an online transfer into it from your bank account.
Ideally, you should transfer a fixed amount into it every month consistently, so that you can continue making investments. This can easily be done by setting up automatic ACH transfers.
5. Figure Out What to Invest In
There are many factors that influence your investment choices. For example, your age, your risk tolerance, and the time you are investing for, all play a part in deciding what to invest in.
The kind of account you have might also impact your decision. For example, 401k and 529 accounts usually have a predetermined set of investment options.
Chances are when you are just starting out, you want to go with a safer choice. In that case, it is best not to invest in individual stocks, but rather in a passively managed Index Fund or Exchange Traded Fund (ETF). A great choice for new investors is a low cost index fund that tracks the S&P 500.
6. Choose an Investment Strategy and Set Up Automatic Investing
Once you know what to invest in, you need to choose an investment strategy.
A good strategy for new investors is Dollar Cost Averaging – this is where you automatically invest a certain amount of money every month. This way, you invest consistently and don’t buy or sell investments impulsively based on emotions.
Just like automating money transfers from your bank account into your brokerage account, you can easily automate this monthly investment in your brokerage account for hassle-free investing.
7. Invest and Forget
Don’t be intimidated by complicated or fancy investing strategies you hear from experts, and don’t fall for get-rich-quick schemes.
Although it is not exciting, long-term buy-and-hold investing has proven time and time again to give consistently good returns.
Remember, investing is not a sprint but a marathon, and you are in it for the long haul.
Conclusion
So what are you waiting for? Start investing already!
Don’t procrastinate – the sooner you start investing, the exponentially higher your returns will be! Use the steps in this video to start investing today!
Download Transcript: Ideal for Use by Teachers in their Lesson Plan to Teach Kids and Teens
Podcast: Start Investing in 7 Easy Steps: A Guide to Begin Investing Today for Kids & Beginners
Fun, informative and concise episodes by a 10-year old, breaking down complex financial concepts in a way that kids and beginners can understand. Episodes cover personal finance topics like saving, investing, banking, credit cards, insurance, real estate, mortgage, retirement planning, 401k, stocks, bonds, income tax, and more, and are in the form of a conversation between a cowboy (a finance novice) and his friend, a stock broker. Making finance your friend, only at Easy Peasy Finance.
A little bit about me: I have been fascinated with the world of personal finance since I was 6! I love to read personal finance books, and keep myself updated on the latest by reading various personal finance magazines. My friends often ask me questions about finance because they find it complex and intimidating. That’s what inspired me to start my YouTube channel called Easy Peasy Finance when I was 8, and this podcast 2 years later.
Want to start investing, but don’t know how to? Here are seven simple, actionable steps to start investing.
Show notes and transcript at: https://www.easypeasyfinance.com/beginners-guide-to-start-investing-kids/
