3 Steps to Investing for Beginners

Every time I log into Facebook, I see posts by family or friends stating their desire to get ahead in life and get their finances in order. And, that is for good reason as most of these people live in Illinois currently and the financial picture there is pretty bleak. However, this desire to get out of the mud financially is not limited to Illinoisians. Every body wants to put a little bit of cushion between their debt and their next paycheck. 

Most people begin this process by starting up a savings account at their local bank but quickly realize that the interest there is so little that it is barely worth the effort to drive down to the bank. Once this realization hits home, the next step is to begin considering different ways to invest that will generate a better interest rate than the bank. So, you start looking at ways to invest but there is this fear of making bad investments. What if the market turns bad and I lose everything?

While there are definitely some bad investment choices out there, the risk of losing your money is not nearly as great as most people believe to be true. Investing your extra pennies as opposed to burying them in the backyard or putting them in the bank is an excellent way to create a little breathing room for your future.


Dave Ramsey gives us three tips for investment, this week, that can help you to get your foot in the door without feeling like you are about to slam it on your leg. I will list the three tips here but I highly encourage you to click on the link provided for a more detailed breakdown of these items.

How to Start Investing

Start Investing in a 401(k)

Contribute to a Roth IRA

Find a Financial Consultant Who Can Help You Start Investing

And that’s it. You’re probably thinking to yourself, I already have a 401K through my employer. I thought this was about investing. But, that is investing. Your employer sponsored 401K plan is a diverse mixture of numerous stocks and bonds. You might not have even known that you were in the market. Starting with this is important because you probably are not maxed out in your contributions. However, you would be hard pressed to find an investment that will consistently beat the interest rate on your 401K. Put as much money into it as you can afford and go from there.

Life is Strange. Live it Well.

PS: The more money you make, the more you can invest. But, you knew that already.

3 thoughts on “3 Steps to Investing for Beginners

  1. Pingback: This Strange Life

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