Investing beginners that are new to investing understanding some basics can help get you started in the right direction even if you don’t feel ready yet.
Get rid of your debt first! It is very difficult to get wealthy with debt (99% of debt is the wrong kind of debt).
- Put together a budget you can follow. Learn to live off of less and save more.
- Create an emergency savings account with a minimum of 6 months of living expenses.
- Sign up for your company’s 401k plan and max it out (especially if your employer provides matching).
- Read the basics about an IRA and Roth IRA account at IRS.gov.
- Sign up for an IRA or Roth IRA account.
- Contribute annually to your accounts as permitted by the IRS.
For investing beginners new to investing this all can be a lot to absorb, but the sooner you learn about these wealth building tools the sooner you will get to retirement. Planning, budgeting, and investing properly is a skill. You have to learn how to do it. Even if you start small don’t wait, so you can put it on auto pilot. Smart investing beginners live debt free and take advantage of tax deductions or tax deferred benefits as one key aspect to building wealth.
