I get the question of what should I invest in so often I decided it was about time just to create Investing 101 Blueprint. This post will not be the end all be all. I think I will make this part of a Step-by-Step Blueprint Series. I’m not a financial advisor everyone must do their own research.
Words To The Wise
If you have ANY debt that is not a Mortgage, you should consider tackling that depending on the interest rate before investing. Why? Because mathematically, it makes no sense. Check out my Debt 101 Blueprint to smash all your debt. The goal of your investment strategy should be to build wealth, not diminish it. This will be a basic step-by-step Investing 101 Blueprint guide.
Investments
IRA’s, 401K’s, Taxable Accounts, ETF’s and Index Funds.
Step One
Look at contributing to your employers 401K at least up to the match. There is no reason to leave free money sitting on the table.
Step Two
Consider opening up a Roth IRA or Traditional IRA with Vanguard.
Step Three
Open up a taxable account with Vanguard.
Step Four
Choosing funds will depend on how much money you have to start investing. If you have $3,000 I would go with VTSAX. If you have less than $3,000 go with the ETF version VTI.
Step Five
Set your investing on autopilot by automating your investing. This can be done weekly, bi-weekly, or monthly.
Step Six
Buy And Hold these investments. Invest as much as you can as often as you can.
Step Seven
Don’t lose your shirt. Stay the course with this simple Investing 101 Blueprint guide until you have built a good wealth foundation and are ready for the next level.
Step Eight
Don’t listen to the news, influencers, gurus, or day traders. You will eventually see your stocks go down in value. Literally don’t touch your investments instead stick to this Investing 101 Blueprint and keep repeating. Your investments will trend upward over time if you follow this blueprint.
Thoughts
Everyone must do their own research on investing and funds. This Investing 101 Blueprint will get you on the right wealth-building path to reach Financial Independence.
______________________________________________________________________________
This was a really helpful and clear post. I’m a big advocate of people starting investing!
That makes two of us.
Great post – to the point! I think this is a helpful overview for many people.
I actually just wrote a post on this the other day (not live yet, I’ve got a backlog of posts to publish) but I call it When to Invest Versus Paying off Debts: My 7% Rule! I believe that time in the market is SO valuable that you should almost always be investing unless your debts are greater than 7%, which is about the return on the markets (adjusted for inflation and taxes). But things like consumer debt with high APRs, like you say when it mathematically doesn’t make sense – definitely important to pay those off as quickly as possible!
Steps 7 + 8: so important! And probably the most difficult for new investors.
Thank you for the kind words! I also use the 7% rule. I can’t wait to see your post published.
Hi,
Your post is very good, really want to follow your advice.
However seems all these accounts are only available for USA.
Can you make some reccomdations for UK investing accounts.
I’m a complete dummie when it comes to investing.