4 Simple Steps to Get Started Investing

Where to start investing

This is what I hear a lot, “I want to invest, but I just don’t know where to start. I don’t even really know how much I need to start investing.”

Let me help you know where to start and how much it will cost you to get started investing.

There’s one assumption I’m making for today’s post and that’s you already know your purpose for investing (this will help determine how much you should be investing). It could be financial freedom, to buy your dream house, fund your child’s education, etc.

You can read my other post here if you’re not clear on your purpose: The Number One Thing to Know Before You Ever Start Investing.

If you’ve already got your purpose, then read on!

Here’s where you start:

1-Know How Much You’ll Be Able to Invest Each Month

Coming up with an amount you’ll be able to invest each month will be super helpful to figure out which investment option will work best for you.

There’s different types of investments, some require a minimum amount and some don’t.

If you don’t have the minimum required to invest then you can immediately cross those off the list.

Even if you just have a lump sum right now then start with that amount.

Take a look at your finances and what would be a reasonable amount to start investing each month.

2-Know Where You Can Put That Investment

Knowing your options for investing will help you narrow down which ones go along with your monthly investment amount.

You can search online for different types of investment options, including, but not limited to, 401k, Roth IRA, IRA, taxable brokerage account.

Research which ones look the best. I like Vanguard for my retirement accounts and Ally Invest for my taxable brokerage account. They both have low fees and great customer service.

3-Know Which Items to Put Inside Your Investment

Being aware of the different investment options within your investing platform helps make it easier to narrow it down to what’s best for you.

There’s investing options like company stocks, ETFs, index funds, REITs, etc.

Some of those options require minimums, which is why we came up with the investment amount in step 1. We can weed out any options that have too high of a minimum to invest.

4-Know How To Keep Your Fees As Low As Possible

Find out the fees related to any investment you’re considering. We want to have the lowest amount of fees so your investment can grow as much as possible over time, especially if we have a limited amount to invest.

Look at expense ratios, commission trade fees, setup fees, etc. Most sites have a pricing or cost section you can look at.

Keeping the fees as low as possible helps us to grow our investment even more because of compounding interest. Compounding interest means we are earning money on our principal amount invested and the interest earned over a period of time. The lower the fees, the more our investment is able to grow over time.

Knowing these 4 items will you help you know where to begin with investing. If you want to make it easier on yourself, I’ve done a lot of the research (and show you how to do the research) in my stock market investing course here.

What’s the first thing you want to invest in? Share in the comments below!

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