How to Start Investing: a 9-Step Guide for Beginner

Learning how to start investing can feel confusing to new investors. Failed attempts to translate investment jargon and seeing ticker symbols run across your screen as you watch the morning news is enough to keep potential investors out of the investing game for good.

Setting goals should always be the first step in any significant financial changes you're looking to make. Whether investing, buying a house, or working to increase your income, think of your goals as a roadmap to take you from Point A (where you are now) to Point B (where you want to go).

1. Set Financial Goal

If your financial goals are your road map, then consider your budget the vehicle that's transporting you along your journey. Often overlooked, your budget is your foundation to financial success. Having a solid grasp of how you spend and save is essential to the beginning investor. 

2. Live on a Budget

And if your budget is the vehicle to take you where you want to go, financially speaking, then an emergency fund is like your AAA membership (American Automobile Association). When you own a car, you expect it to have issues or need maintenance at some point.

3. Build an Emergency Fund

Once you have built an emergency fund, look at your debt profile. Are you in debt? If your answer is “yes,” what types of debt do you owe? Since debts carry different interest rates, accounts like mortgages and student loans often have lower interest rates. In comparison, credit cards and personal loans are typically considered high-interest debt.

4. Get Out of Debt

It's perfectly normal to feel scared of something you don't understand. Investing-related terms such as real estate investment trusts (REITs), exchange commission, and market conditions can sound like a foreign language to would-be investors. 

5. Educate Yourself

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