Michael Ralby on Getting Started in Investing

Investing early and wisely is the key to a comfortable life down the road, but knowing how to begin the process might be a bit daunting for anyone largely unfamiliar with the financial industry. Worse yet, many young professionals might not have a lot of money to begin the process with.

Fortunately, a lot of disposable income isn’t required in order to do so. Even $50 a month can get you started. Consider these suggestions if you, too, want to start investing but feel overwhelmed with all of your options:

The Cookie Jar Approach
Saving money and investing money are actually very closely entwined. Investing money requires having money, and saving enough to use towards investment will likely take less time than you think it will. For those who have never been big savers before, try putting aside $10 each week into an envelope, small safe, or, as the name might suggest, a cookie jar. Over the course of the year, this simple action will save you more than $500, which is plenty of money to invest.

If you don’t want to work with physical money, consider setting up an online savings account, and have part of your paycheck automatically transferred there each month. This account should not be linked to your debit card, though the money can be withdrawn in two business days if you do need it for whatever reason.

Explore Your Employer’s Offerings
No matter your budget, you should take advantage of any retirement plans your company offers. This mostly comes in the form of a 401(k). You can contribute an amount so small that you won’t even notice it coming out of your paycheck. Although 1% might not seem like a lot, it will get you started in the program, and you will be able to increase the percentage over time.

Check to see if your company provides a matching contribution, too, which will make your 401(k) even more attractive.

Use an Investment Software
Almost everyone has a smartphone these days, so you might as well use it! Take advantage of all of the apps available that make investing easy and low-maintenance. There are also software platforms available via computers, too, such as Betterment. Platforms such as Betterment handle the investing for you all for a small fee. Other popular online investing options include: Robinhood, E-Trade, and Ameritrade, but there are no shortage of applications available and cater to investors of all levels of familiarity.

Originally posted at MichaelRalby.com