Hello, beautiful people from across the lands! This by far is my most thought stretching post I have created thus far. I have shied away from talking about investing due to my lack of knowledge and just intimidation with the subject. But we know scared money don’t make no money! But seriously after doing some research, listening to Podcasts, and following the market, I feel comfortable sharing what I have learned thus far. Again this personal finance blog is a real-time journey for me and I’m just taking you along the ride. Buckle up!

Start With The Basics

Invest in Retirement Plan At Your Job

This is the easiest way to get started with investing. If your job offers this of course. Some jobs even offer a company match. Meaning for every deposit you make into your retirement they will match by a certain percent. That is FREE MONEY just for investing in your retirement plan. If you are unsure if your job offers this just check in with the HR department and opt-in. 

Consider Opening an IRA Account 

What is an IRA account and why should you consider one? First, an Individual Retirement Account (IRA) is a tax-deferred or tax-free retirement account that you can open on your own separate from your job. Now there are different types of IRA accounts like Traditional, Roth, and a few others. I recommend reading this article as it breaks it down in easy to understand the terminology.

There are a few reasons to consider opening an IRA. One is that working people can open up this account with either a bank or a Broker. Unlike the retirement accounts offered through your job, you have often have to be full-time to qualify for benefits. If that is not an option for you, opening an IRA on your own will help position for retirement. If only I have known this as a teenager when I first started working! No worries better late than never. The other reason is an IRA gives you the flexibility to invest in stocks and bonds within the account that traditional 401k’s do not. 

Research Brokerage Accounts 

When looking to invest you will need to set up a brokerage account. If you have a retirement plan with your job then you already have one. I would still encourage researching others out there to learn about their benefits and fees. These are three reputable brokerage accounts that are commonly mentioned in the finance world. Check out their websites, give their customer service a call to learn more about them. 

Identify Long Term & Short Term Investment Goals

There are ways to invest to gain quick wins and then there are ways that are more long term. Look at your financial situation and determine how you want to get started. I will say the idea in investing is a fundamental way to build wealth and create a legacy for others to benefit from after you. Below are some common terminology in different ways to start investing. 

  • Stock– fractional ownership of a corporation entitling the owner to the assets and profits
  • Bonds– a loan to a company or government that pays investors a fixed rate over a specific timeframe
  • Index Funds– mutual fund or exchange-traded fund complied with stocks or bonds design to mimic the financial performance of the market (in other words gives you ownership in multiple corporations versus purchasing individual stocks)

Explore Beginner Investing Apps

The best way to learn something is by exposure. There are reputable beginner-friendly investment apps that you can get started with today to get your feet wet. These apps offer the opportunity to purchase individual stock from corporations you are attracted to. These are two common apps to sign up for and get started.

Action Steps to Take NOW

1st Step: Identify at least one brokerage account you would like to open

2nd Step: Open the account and budget how much you can contribute to this account

3rd Step: Choose a form of investment (stock, bond, index fund, or a mixture of all three)

Conclusion 

I know this may be a lot of information to consume in one post but do not let that stop you. Learn piece by piece and take one action step at a time. You are not alone, this is a journey for me as well. Debt freedom is just the beginning but financial independence is the goal. To reach FI investing definitely has to be in the mix.

Until next time dream, believe, and achieve. 

What ways are investing today?