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Very few people take advantage of how easy it is to start investing!
Unfortunately, even fewer people ever invest.
In this article we will dive into 3 quick and easy steps to get a foot into the door of the investing world!
And, no, you don’t need to know anything about Wall Street, stock brokers, bonds, or mutual funds!
I’ve been using and recommending some awesome services that literally give you money to start learning how to invest.
Seriously! Free. Money.
We will also talk about some other really important aspects to prep for investing.
Additionally, once you’re ready, I’ve listed out a handful of other articles written for you within this same topic!
- How to Quickly Boost Your Credit Score
- 8 Legit Passive Income Opportunities for Millennials
- How to Pay off Your Debt with Blogging
- 10 Brand New Investing Books You Should Read Right Away!
Ready to learn? When you’re done, scroll down to the comment section and let me know your thoughts!
Step #1: Know Your Money
Net Worth
Do you have any of the following?:
- Student loan debt
- Credit card debt
- Home mortgage
- Investments through a RothIRA or 401k/403b
- Money sitting in your bank
I’d be surprised if the answer wasn’t a yes!
The reason I ask is because it is critical to start following your net worth if you plan to start investing!
Your net worth is essentially all your “money (assets) + all your debts (liabilities)”
The reason you need to start watching your net worth now is to begin understanding your spending habits, so you can make wiser investing decisions in the near future!
My favorite way to track my net worth is through a powerful (and FREE!) money-tracking platform called Personal Capital.
Check out this full review of Personal Capital here!
Credit Scores
You see the ads on TV and have heard these words before.
You may vaguely know what it means, but do you really understand it?
We’re talking about credit scores!
Now, if you are a millennial or young adult, you may have never checked your credit score, and that’s okay!…for now.
But, as you get into investing, as you start getting real about your money, you need to have an idea of what the banks and lenders see you as.
I’ve put together a full article explaining credit scores here, but in quick summary, your credit score is made up by 3 “credit rating agencies”, and this score can range from 300 to 850.
(I’ve always used Credit Karma to check my credit score!)
Since it is free, their company is trusted and reputable, and checking my score through them makes no impact on your credit score!
It’s important to get familiar with this score because of this amazing financial journey you’re embarking on!
If you plan to get into real estate investing, if you plan on buying a home, if you’re using credit cards, if you have student loan debt, you need to know it’s impact on your credit score!
Step #2: Do Your Research!
If you’re a frequent flier over on this blog, you know I love to read!
This is such an important part for beginner investors, because it is NOT OKAY to start throwing money into investments without any knowledge of what you’re doing.
Let me repeat: It isn’t smart to invest without learning about it beforehand!
Therefore, I’ve been accumulating lists of my favorite books as I’ve been going through my financial journey, and I’ve listed out some of my favorite books, authors, and lists that you should consider checking out!
- Total Money Makeover by Dave Ramsey
- The Millionaire Next Door by Thomas Stanley
- Rich Dad Poor Dad by Robert Kiyosaki
If you’re interested in rental properties for passive income, I’ve been loving this book by Bigger Pockets.
Additionally, if you really want a good idea of how stock investing works, Tony Robbin’s Unshakeable is an amazing read!
I always love adding tons of new books to my lists. Let me know your favorite financial books down in the comments!
Step #3: Start SMALL
So, by this point, you have an idea that investing isn’t something you can just jump right into and expect awesome success.
One of the biggest pieces of advice I can provide is to START SMALL.
You may have thousands saved in your banking account, but throwing it all into a stock or a mutual fund can be really, really risky.
Therefore, I love to promote my favorite two apps that helped me learn to invest, and have helped hundreds of my readers!
App #1: Robinhood
Robinhood is an app that gives you a free stock to start learning how to invest!
You don’t need to put any money into it, and the app itself is absolutely free!
Over time, I’ve used Robinhood to learn how stocks react to the news, how the rise and fall of stocks work, and watched my very own free stocks grow.
What’s so innovative about this service is that it never requires some middle-man like a stock broker or financial guru to help you.
They allow you to put money of your own in, to buy stocks, but if you’re interested in just learning to eventually invest, this is an awesome opportunity to take!
If you sign up through my link, a member of ThirtyEight Investing will also get a free stock as well as you! It’s a win-win!
App #2. Acorns
Another really popular way to learn how to invest is through an app called Acorns!
It essentially works by linking to your bank account, and allowing Acorns to put aside the rounded up “cents” portion of your purchases, to invest!
For example, if you buy some coffee for $4.89 this morning, Acorns will set aside $0.11 for you to invest in stocks. You will accumulate money, and when you’re ready, you can choose what to invest in!
Similar to Robinhood, you get $5 for free to invest when you create an account!
This will allow you to learn about investing, start investing with spare change, and be a part of an innovative platform that so many millennials and adults are using to save up for their future.
To check this out, follow the link below!
Let’s Summarize!
My hope with this quick article was to encourage you to do something today to learn about investing!
Whether it is to pick up a financial book at a library, or to download one of the apps and start investing for free, there is something you can do today to get one step closer to early retirement and a financially free life!
I’d love to hear your experience with how you started investing, down in the comments! Let’s help eachother through our financial journeys!
Let’s keep learning!
All advice and opinions provided in this post are reflections on experience and are for educational and entertainment purposes only. Affiliates were used in this article. Please see our disclaimer page details.