How to Start Investing

Gain confidence, start small, build the habit

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The Short Answer

Open a brokerage account. Set up a $10/month automatic investment into an all-world ETF. Set a calendar reminder for one year. Don't check it before then.

That's it. You'll learn more from doing this than from reading another 50 articles about investing theory. The mechanics take 15 minutes. The hard part is deciding to start.

If you want to understand the "why" behind this strategy, read our guide on where to invest. If you want to just start, keep reading.

Why Most People Never Start

You probably already know you should be investing. So why haven't you?

Fear of doing it wrong. What if you pick the wrong fund? What if you invest at the wrong time? What if you lose everything? These fears feel reasonable, but they're overblown. With a simple index fund strategy, there's almost nothing you can "do wrong" except not starting.

Analysis paralysis. There's so much information. So many opinions. So many products. It feels like you need to understand everything before you can do anything. You don't. The basics fit on an index card.

"I'll start when I have more money." This is the trap. There's never a "right" amount. If you can't invest $50 now, you won't invest $500 later. The habit matters more than the amount.

The real cost of waiting: Every year you delay is compound growth you'll never get back. Someone who invests $200/month starting at 25 will have roughly twice as much at 65 as someone who invests $200/month starting at 35. Ten years of delay, half the outcome. Time is the one resource you can't buy more of.

Here's the uncomfortable question: Why wouldn't you do this if you can save even $10?

If you have $10 left over after expenses, what's the alternative? It sits in a checking account losing value to inflation. Or you spend it on something forgettable. Or you could put it somewhere it grows. The choice seems obvious once you actually look at it.

The Security Argument

Forget about getting rich. Forget about early retirement. Let's talk about something more fundamental: not being vulnerable.

Life throws curveballs. Job losses. Medical emergencies. Economic downturns. Family crises. The difference between weathering these storms and being devastated by them often comes down to having money saved.

This isn't about luxury. It's about security.

Money doesn't buy happiness, but lack of money buys a lot of stress. Every dollar you invest is a small brick in a wall between you and financial disaster.

You're not investing to get rich. You're investing because it gives you goddamn security. Options when you need them. Breathing room when life gets hard.

Why wouldn't you want that?

Your First Investment: Step by Step

Here's exactly what to do. Total time: about 15 minutes, plus a few days waiting for account approval.

Step 1: Choose a Broker

You need a brokerage account—a place to buy and hold investments. See our full broker recommendations, but here's the quick version:

Don't overthink this. They're all fine. Pick whichever has the nicest website.

Step 2: Open the Account

Go to the broker's website. Click "Open Account" or similar. You'll need:

The process takes 5-10 minutes. They'll verify your identity, which can take a few hours to a few days.

Step 3: Set Up Automatic Transfer

Once your account is approved, set up a recurring transfer from your bank account. This is the most important step—automation removes willpower from the equation.

Pick an amount you won't miss. Seriously. Start embarrassingly small if you need to.

The amount matters less than the consistency. You can increase it later. For now, pick something sustainable and set it up to happen automatically on payday.

Step 4: Buy One All-World ETF

With money in your account, buy an all-world index fund:

Most brokers let you set up automatic purchases—every time money arrives, it buys more of this fund. Set that up if available. If not, just make it a habit to log in monthly and click buy.

Why these funds? We explain the reasoning here.

Step 5: Set a Calendar Reminder for 1 Year

This sounds strange, but it's important: don't check your investments for a year.

Not because something bad will happen, but because frequent checking leads to emotional decisions. The market will go down sometimes. If you're watching daily, you'll panic. If you check yearly, you'll see growth.

Set a calendar reminder for 12 months from now: "Check investments." Then close the app and live your life.

The $10/Month Experiment

If you're still hesitating, try this: Invest $10/month for one year.

That's $120 total. Less than a nice dinner out. Less than most monthly subscriptions. An amount that won't hurt if you somehow lose it all (you won't, but your anxious brain doesn't know that yet).

What you'll learn in that year:

After a year, you'll have around $120-130 (depending on market performance) and—more importantly—zero fear. You'll have done the thing. The mystery will be gone.

Then you can decide: increase to $50/month? $200? Whatever feels right. But you'll be deciding from experience, not from fear.

The habit matters more than the amount. Someone investing $10/month consistently will end up wealthier than someone who plans to invest $500/month "when the time is right" but never starts.

Common Questions

What if I need the money back?

You can sell your investments and withdraw money anytime—there's no lock-in period for regular brokerage accounts. However, if you sell during a market dip, you might get back less than you invested. That's why you should keep 3-6 months of expenses in a regular savings account as an emergency fund. Your investments are for long-term growth, not short-term emergencies.

Should I pay off debt first?

It depends on the interest rate. High-interest debt (credit cards, personal loans over 7%): Yes, pay these off first. The guaranteed return from eliminating a 20% interest rate beats any investment return. Low-interest debt (mortgages, student loans under 5%): These can coexist with investing. The math often favors investing while making minimum payments, because long-term investment returns typically exceed 5%.

What about an emergency fund?

The textbook advice is 3-6 months of expenses in a savings account before investing. But here's a practical approach: build a small emergency fund first—even $1,000-2,000 provides basic protection against most surprises. Then invest while continuing to build toward the full 3-6 months. Don't let perfect be the enemy of good. Do both in parallel.

Is it really that simple?

Yes. The financial industry profits from making it seem complex—complex products mean higher fees. But decades of research show that simple, low-cost index fund investing beats most professional strategies. The hard part isn't the mechanics. The hard part is starting, staying consistent, and not panicking when markets drop. The strategy is simple. The psychology is hard.

What if the market crashes right after I start?

Then you'll get to buy more shares at lower prices with your next monthly investment. Crashes feel scary but are actually gifts to long-term investors. The people who lose money in crashes are those who panic sell. If you're investing automatically and not checking obsessively, you'll barely notice. In 10 years, that crash will be a blip on your chart.

You've read enough. You know what to do. The only question is whether you'll do it.

Open a brokerage account today. Set up automatic investing. Start with whatever amount you can. Then come back in a year and see how it feels.

Future you will be grateful you started now.

Once you've started, track your progress toward FI. Watching those numbers grow is surprisingly motivating.

→ Where to invest: ETFs and brokerages
→ Calculate your FIRE number
→ See how your money could grow