{"id":15068,"date":"2026-01-23T00:45:00","date_gmt":"2026-01-23T06:45:00","guid":{"rendered":"https:\/\/www.teryrtuytyut.sbs\/online-banking\/banking-topics\/?p=15068"},"modified":"2026-02-06T14:21:17","modified_gmt":"2026-02-06T20:21:17","slug":"how-to-begin-investing","status":"publish","type":"post","link":"https:\/\/www.teryrtuytyut.sbs\/online-banking\/banking-topics\/how-to-begin-investing\/","title":{"rendered":"How to begin investing: The steps to take and terms to know"},"content":{"rendered":"\n<script type=\"application\/ld+json\">\n{\n  \"@context\": \"https:\/\/schema.org\",\n  \"@type\": \"FAQPage\",\n  \"mainEntity\": [{\n    \"@type\": \"Question\",\n    \"name\": \"What are the financial benefits of investing?\",\n    \"acceptedAnswer\": {\n      \"@type\": \"Answer\",\n      \"text\": \"Investing your money wisely can help you preserve and grow your money over time. \u201cThe key benefit of investing is that your money will grow without you having to do any work,\u201d says Jim Wang, founder of WalletHacks.com. \u201cFor decades, wealth has been created through the stock market because it can continue to grow without your direct intervention.\u201d\nHistorically, investing has been a great way to keep ahead of inflation and its effect on your savings. Financial planning software will often factor in about 3-4% annual inflation3-4% annual inflation to align with historical averages, while the S&P 500\u2019s annual return has been about 10% over time. Of course, past performance does not guarantee future gains.\"\n    }\n  },{\n    \"@type\": \"Question\",\n    \"name\": \"When should I start investing?\",\n    \"acceptedAnswer\": {\n      \"@type\": \"Answer\",\n      \"text\": \"Typically, the earlier you start investing, the more potential there is to grow your money, Wang says. For example, if you put away $100 a month and never invested it or earned interest on it, you\u2019d have $12,000 after 10 years. But if you invested that same $100 a month and earned an 8% annual return, you\u2019d end up with $18,000\u2014or 50% more. Over decades, the difference can add up to tens or even hundreds of thousands of dollars. Be aware, however, that markets have their ups and downs, and there\u2019s no guarantee of that kind of growth. (Always consult a financial professional before making investment decisions.)\"\n    }\n  },{\n    \"@type\": \"Question\",\n    \"name\": \"How can you prepare to start investing?\",\n    \"acceptedAnswer\": {\n      \"@type\": \"Answer\",\n      \"text\": \"In addition to growing your income, paying down debt, saving for retirement, and having an emergency fund, investing can be fruitful component of your larger financial strategy as you move through life\"\n    }\n  }]\n}\n<\/script>\n\n\n\n<p>You\u2019ve got big financial goals: a new home, sending your kids to college, and, eventually, retirement. There are a lot of ways to reach those goals, and investing your money is one method to help you get there.<\/p>\n\n\n\n<p>But before you start buying up stocks like a stockbroker you saw in the movies, take a deep breath and make sure you\u2019re ready. (And before you make any investing decisions, consult a financial advisor.) Investing is risky, so first you need a <a href=\"https:\/\/www.teryrtuytyut.sbs\/online-banking\/banking-topics\/what-is-first-step-financial-planning\/\" target=\"_blank\" rel=\"noreferrer noopener\">personal financial plan<\/a> in place, and you should also have a firm understanding of how it all works. So, how do you begin investing?<\/p>\n\n\n\n<p>Even if you\u2019re wondering how to start investing with little money, it takes financial preparation, education, and clear goals to get started.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-are-the-financial-benefits-of-investing\">What are the financial benefits of investing?<\/h2>\n\n\n\n<p>Investing your money wisely can help you preserve and grow your money over time. \u201cThe key benefit of investing is that your money will grow without you having to do any work,\u201d says Jim Wang, founder of a personal finance blog. \u201cFor decades, wealth has been created through the stock market because it can continue to grow without your direct intervention.\u201d<\/p>\n\n\n\n<p>Historically, investing has been a great way to keep ahead of<a href=\"https:\/\/www.teryrtuytyut.sbs\/online-banking\/banking-topics\/how-does-inflation-affect-savings\/\"> <\/a><a href=\"https:\/\/www.teryrtuytyut.sbs\/online-banking\/banking-topics\/how-does-inflation-affect-savings\/\" target=\"_blank\" rel=\"noreferrer noopener\">inflation and its effect on your savings<\/a>. Financial planning software will often factor in about 3%-4% annual inflation to align with historical averages, while the <a href=\"https:\/\/www.bankrate.com\/investing\/what-is-sp-500\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">S&amp;P 500\u2019s annual return<\/a> has been about 10% over time, according to Bankrate. Of course, past performance does not guarantee future gains.<\/p>\n\n\n\n<p>It\u2019s a good idea to know how to begin investing, because investing can also come with tax benefits\u2014especially if you\u2019re <a href=\"https:\/\/www.teryrtuytyut.sbs\/online-banking\/banking-topics\/a-lifetime-of-investing-how-to-get-started\/\">investi<\/a><a href=\"https:\/\/www.teryrtuytyut.sbs\/online-banking\/banking-topics\/a-lifetime-of-investing-how-to-get-started\/\" target=\"_blank\" rel=\"noreferrer noopener\">ng for retirement<\/a>. If your retirement savings are invested within an IRA, there are tax advantages whether it\u2019s a Traditional IRA or Roth IRA. A Traditional IRA allows you to deduct your IRA contributions from your current taxable income, and you pay taxes on any gains in retirement. A Roth IRA works the other way: You pay taxes on your contributions now, but you won\u2019t be taxed on your gains in retirement.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">When should I start investing?<\/h2>\n\n\n\n<p>Typically, the earlier you start investing, the more potential there is to grow your money, Wang says. For example, if you put away $100 a month and never invested it or earned interest on it, you\u2019d have $12,000 after 10 years. But if you invested that same $100 a month and earned an 8% annual return, you\u2019d end up with $18,000\u2014or 50% more. Over decades, the difference can add up to tens or even hundreds of thousands of dollars. Be aware, however, that markets have their ups and downs, and there\u2019s no guarantee of that kind of growth. (Always consult a financial professional before making investment decisions.)<\/p>\n\n\n\n<p>While many people want to know how to start investing with little money, Wang advises not to rush into it. Before you start investing, he says to make sure you\u2019ve already paid off your high-interest debt, are saving for retirement, and have an<a href=\"https:\/\/www.teryrtuytyut.sbs\/online-banking\/banking-topics\/how-much-should-i-have-in-savings\/\"> <\/a><a href=\"https:\/\/www.teryrtuytyut.sbs\/online-banking\/banking-topics\/why-you-need-an-emergency-fund\/\" target=\"_blank\" rel=\"noreferrer noopener\">emergency fund<\/a> to cover unexpected expenses that you wouldn\u2019t be able to pay for with your regular income. If you\u2019re looking for extra money to put toward your investment account, you might want to <a href=\"https:\/\/www.teryrtuytyut.sbs\/online-banking\/banking-topics\/how-to-turn-your-side-hustle-into-your-dream-job\/\" target=\"_blank\" rel=\"noreferrer noopener\">find a side hustle<\/a> or look for <a href=\"https:\/\/www.teryrtuytyut.sbs\/online-banking\/banking-topics\/easy-ways-to-save-money\/\" target=\"_blank\" rel=\"noreferrer noopener\">easy ways to save money<\/a> to boost your savings.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"2451\" height=\"1004\" src=\"https:\/\/www.teryrtuytyut.sbs\/online-banking\/banking-topics\/wp-content\/uploads\/2026\/01\/How-to-Begin-Investing-The-Steps-to-Take-and-Terms_1-InArticle-scaled-e1678137949651-1.jpg\" alt=\"A man and woman hold mugs of coffee and smile while sitting on grass in front of a pitched tent.\" class=\"wp-image-22976\" srcset=\"https:\/\/www.teryrtuytyut.sbs\/online-banking\/banking-topics\/wp-content\/uploads\/2026\/01\/How-to-Begin-Investing-The-Steps-to-Take-and-Terms_1-InArticle-scaled-e1678137949651-1.jpg 2451w, https:\/\/www.teryrtuytyut.sbs\/online-banking\/banking-topics\/wp-content\/uploads\/2026\/01\/How-to-Begin-Investing-The-Steps-to-Take-and-Terms_1-InArticle-scaled-e1678137949651-1-300x123.jpg 300w, https:\/\/www.teryrtuytyut.sbs\/online-banking\/banking-topics\/wp-content\/uploads\/2026\/01\/How-to-Begin-Investing-The-Steps-to-Take-and-Terms_1-InArticle-scaled-e1678137949651-1-780x320.jpg 780w, https:\/\/www.teryrtuytyut.sbs\/online-banking\/banking-topics\/wp-content\/uploads\/2026\/01\/How-to-Begin-Investing-The-Steps-to-Take-and-Terms_1-InArticle-scaled-e1678137949651-1-768x315.jpg 768w, https:\/\/www.teryrtuytyut.sbs\/online-banking\/banking-topics\/wp-content\/uploads\/2026\/01\/How-to-Begin-Investing-The-Steps-to-Take-and-Terms_1-InArticle-scaled-e1678137949651-1-1536x629.jpg 1536w, https:\/\/www.teryrtuytyut.sbs\/online-banking\/banking-topics\/wp-content\/uploads\/2026\/01\/How-to-Begin-Investing-The-Steps-to-Take-and-Terms_1-InArticle-scaled-e1678137949651-1-2048x839.jpg 2048w\" sizes=\"auto, (max-width: 2451px) 100vw, 2451px\" \/><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<p>Looking for a place to put your emergency fund before you start investing? Consider a high interest rate savings account. It\u2019s safe and easy to access, and can earn a competitive rate to help your money grow.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What concepts and terms are important to know before investing?<\/h2>\n\n\n\n<p>Before you start investing, Wang says it\u2019s important to understand some basic concepts and terms that can help you develop your long-term investment strategy and reach your financial goals. Because you should always consult a financial advisor before you begin investing, understanding these terms can help those conversations be more productive.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Diversified portfolio<\/h3>\n\n\n\n<p>As you learn how to begin investing, you\u2019ll notice that a guiding principle is to minimize risk. To do that, Wang says it\u2019s important to maintain a diversified portfolio of investments. \u201cThis is a portfolio of investments that includes a mix of stocks and bonds,\u201d Wang says. \u201cWithin those two groups, you can be geographically diversified if you have both U.S. and international assets. You can also diversify across other asset classes, like real estate, so that your portfolio isn&#8217;t subject to the risk of any one asset class.\u201d Wang recommends spreading your investments across different industry sectors, too\u2014such as technology, health care, and finance.<\/p>\n\n\n\n<p>When your portfolio is diversified, it isn\u2019t overly exposed to the risk inherent in any one asset class or industry, Wang says. That means it\u2019s less likely to experience big swings in value, which can help keep you on track toward your goals.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Investment automation<\/h3>\n\n\n\n<p>Eliciting feelings from fear to euphoria, investing money can be an emotional rollercoaster. These emotions can derail your investment strategy, Wang says, because they can lead to irrational buying and selling. Similar to <a href=\"https:\/\/www.teryrtuytyut.sbs\/online-banking\/banking-topics\/automate-your-savings\/\" target=\"_blank\" rel=\"noreferrer noopener\">savings automation<\/a>, investment automation can remove emotions from the equation and keep your investing on track to reach your financial goals.<\/p>\n\n\n\n<p>With your <a href=\"https:\/\/www.teryrtuytyut.sbs\/online-banking\/banking-topics\/what-is-first-step-financial-planning\/\" target=\"_blank\" rel=\"noreferrer noopener\">financial plan<\/a> in mind, you can automate your investment contributions by establishing regular transfers into your investment account from your paycheck or a bank account. \u201cInvestment automation can also include using robo-advisors, which can help you invest in a balanced portfolio of funds that matches up with your goals, risk profile, and needs,\u201d Wang says. The regularity of investment automation can also help you take advantage of \u201cdollar cost averaging,\u201d he says. \u201cWhen you make investments at regular intervals, you smooth out the cost basis of your investments,\u201d Wang says. \u201cIf you\u2019re buying at both high and low prices, the cost of your investments will average out over time.\u201d<\/p>\n\n\n<\/div>\n\n\n<div class=\"mx-auto block-quote block-quote--yellow-circles bg-fixed bg-center bg-no-repeat bg-cover z-0\">\n    <div class=\"block-quote__glow\"><\/div>\n    <blockquote class=\"post--constrain-large\">\n        <p>&#8220;A time horizon is extremely important because you need your investments to match your goals and your risk tolerance.\u201d<\/p>\n                    <footer class=\"block-quote__source\">Jim Wang, Founder of a personal finance blog<\/footer>\n            <\/blockquote>\n<\/div>\n\n\n    <div class=\"post__content\">\n\n\n\n\n<h3 class=\"wp-block-heading\">Index funds<\/h3>\n\n\n\n<p>\u201cIndex funds are mutual funds or ETFs [exchange traded funds] that track a particular index, such as the S&amp;P 500,\u201d Wang says. You can buy shares of index fund ETFs just like a stock, but they move up and down based on the performance of many different underlying assets. For that reason, index funds offer investors a simple way to stay diversified.<\/p>\n\n\n\n<p>For example, in addition to an index fund that tracks the performance of the S&amp;P 500 (which is made up of 500 of the largest companies in the United States), Wang says you could also buy an ETF that tracks the price of gold or one that tracks the performance of European tech companies. He points out that while many <em>actively managed<\/em> mutual funds and ETFs charge fees for managing the underlying assets, index funds are typically cheaper, because they are passively managed. Just keep in mind that while index funds have certain benefits, they still carry risks. Always consult a financial advisor before making investment decisions.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">How should I set my financial goals for my investments?<\/h2>\n\n\n\n<p>Wang stresses the importance of having a concrete plan to help keep you on track and increase your chances of reaching your financial goals. So before you can answer the question \u201cWhen should I start investing?\u201d you need to do these three things first.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Decide what you want to achieve with your investments<\/h3>\n\n\n\n<p>Are you looking to grow wealth? Or is your focus on preserving what you already have? These are great questions to ask yourself, Wang says, as you determine what you\u2019re investing for. When starting investing, make sure your goals are specific, achievable, and measurable. That way, you can track your progress and you\u2019ll know when you\u2019ve reached your goal.<\/p>\n\n\n\n\n\n\n<h3 class=\"wp-block-heading\">Determine a time horizon for your investments<\/h3>\n\n\n\n<p>Investing for retirement is typically a long-term goal, perhaps decades in the future. But investing for college might be a mid-term goal of 10 or 15 years. Growing your money to afford a home renovation might be a short-term goal of one to three years. \u201cA time horizon is extremely important because you need your investments to match your goals and your risk tolerance,\u201d Wang says. \u201cThe longer your time horizon, the riskier you can be with your investments because you have time to outlast any market volatility.\u201d<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"2560\" height=\"1049\" src=\"https:\/\/www.teryrtuytyut.sbs\/online-banking\/banking-topics\/wp-content\/uploads\/2026\/01\/How-to-Begin-Investing-The-Steps-to-Take-and-Terms_2-InArticle-scaled-e1678138009347.jpg\" alt=\"A man and two women smile and drink coffee at an outdoor table, with plants in the background.\" class=\"wp-image-22973\" srcset=\"https:\/\/www.teryrtuytyut.sbs\/online-banking\/banking-topics\/wp-content\/uploads\/2026\/01\/How-to-Begin-Investing-The-Steps-to-Take-and-Terms_2-InArticle-scaled-e1678138009347.jpg 2560w, https:\/\/www.teryrtuytyut.sbs\/online-banking\/banking-topics\/wp-content\/uploads\/2026\/01\/How-to-Begin-Investing-The-Steps-to-Take-and-Terms_2-InArticle-scaled-e1678138009347-300x123.jpg 300w, https:\/\/www.teryrtuytyut.sbs\/online-banking\/banking-topics\/wp-content\/uploads\/2026\/01\/How-to-Begin-Investing-The-Steps-to-Take-and-Terms_2-InArticle-scaled-e1678138009347-780x320.jpg 780w, https:\/\/www.teryrtuytyut.sbs\/online-banking\/banking-topics\/wp-content\/uploads\/2026\/01\/How-to-Begin-Investing-The-Steps-to-Take-and-Terms_2-InArticle-scaled-e1678138009347-768x315.jpg 768w, https:\/\/www.teryrtuytyut.sbs\/online-banking\/banking-topics\/wp-content\/uploads\/2026\/01\/How-to-Begin-Investing-The-Steps-to-Take-and-Terms_2-InArticle-scaled-e1678138009347-1536x629.jpg 1536w, https:\/\/www.teryrtuytyut.sbs\/online-banking\/banking-topics\/wp-content\/uploads\/2026\/01\/How-to-Begin-Investing-The-Steps-to-Take-and-Terms_2-InArticle-scaled-e1678138009347-2048x839.jpg 2048w\" sizes=\"auto, (max-width: 2560px) 100vw, 2560px\" \/><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Consult a financial advisor before investing<\/h3>\n\n\n\n<p>Investing in your future can be overwhelming, but a financial advisor can help, Wang says. Financial advisors can determine which investments are the best fit for your time horizon and goals. They can also help you with tax strategy and other aspects of your financial journey.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">How can you prepare to start investing?<\/h2>\n\n\n\n<p>In addition to growing your income, paying down debt, saving for retirement, and having an emergency fund, investing can be a fruitful component of your larger financial strategy as you move through life. Are you ready to start investing, or do you have some more work to do on your financial foundation first?<\/p>\n\n\n\n<p>Many people still need to build up an emergency fund in case of any unexpected expenses like medical bills or home repairs. Sound familiar? Before you start investing, begin <a href=\"https:\/\/www.teryrtuytyut.sbs\/online-banking\/banking-topics\/4-steps-to-start-an-emergency-fund\/?ICMPGN=OS-BK-ARTCTA\" target=\"_blank\" rel=\"noreferrer noopener\">building an emergency fund<\/a> today.<\/p>\n\n\n\n<p class=\"disclaimer\">Articles may contain information from third parties. The inclusion of such information does not imply an affiliation with the bank or bank sponsorship, endorsement, or verification regarding the third party or information.<\/p>\n\n\n\n<p class=\"disclaimer\">The information provided herein is for informational purposes only and is not intended to be construed as professional advice. Nothing contained in this article shall give rise to, or be construed to give rise to, any obligation or liability whatsoever on the part of Discover, a division of Capital One, N.A., or its affiliates.<\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Investing can be an effective part of your financial strategy. But before you start, make sure you\u2019re ready. <\/p>\n","protected":false},"author":15,"featured_media":22978,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[7,5,89,91],"tags":[114,112,117,37,55,111,131,30,130,110,39,27],"class_list":["post-15068","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-retirement","category-saving","category-saving-for-retirement","category-goals","tag-401k","tag-cd","tag-compound-interest","tag-emergency-fund","tag-financial-goals","tag-financial-plan","tag-high-interest-rate-accounts","tag-ira","tag-long-term-saving","tag-retirement-planning","tag-saving","tag-saving-for-retirement"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.teryrtuytyut.sbs\/online-banking\/banking-topics\/wp-json\/wp\/v2\/posts\/15068","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.teryrtuytyut.sbs\/online-banking\/banking-topics\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.teryrtuytyut.sbs\/online-banking\/banking-topics\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.teryrtuytyut.sbs\/online-banking\/banking-topics\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.teryrtuytyut.sbs\/online-banking\/banking-topics\/wp-json\/wp\/v2\/comments?post=15068"}],"version-history":[{"count":21,"href":"https:\/\/www.teryrtuytyut.sbs\/online-banking\/banking-topics\/wp-json\/wp\/v2\/posts\/15068\/revisions"}],"predecessor-version":[{"id":22977,"href":"https:\/\/www.teryrtuytyut.sbs\/online-banking\/banking-topics\/wp-json\/wp\/v2\/posts\/15068\/revisions\/22977"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.teryrtuytyut.sbs\/online-banking\/banking-topics\/wp-json\/wp\/v2\/media\/22978"}],"wp:attachment":[{"href":"https:\/\/www.teryrtuytyut.sbs\/online-banking\/banking-topics\/wp-json\/wp\/v2\/media?parent=15068"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.teryrtuytyut.sbs\/online-banking\/banking-topics\/wp-json\/wp\/v2\/categories?post=15068"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.teryrtuytyut.sbs\/online-banking\/banking-topics\/wp-json\/wp\/v2\/tags?post=15068"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}