Financial Baddie 101: Beginner's guide on how to start investing your money.
Updated: Sep 14
Y'all grow up with folks saying, "Find yourself a rich man. " Years later little did we know, we are the rich man! You are more than capable sis, to have the bank account you desire. Generational wealth starts with you, whoever your partner will be will have to match!
You a financial baddie, let's get it! 💰
Living an intentional lifestyle means making our money work for us, even while we sleep!
Let's dive into investing, where we'll learn how to grow our wealth and reach our financial goals.
Investing with Intention:
As intentional minimalists, we believe in aligning our financial choices with our values and long-term goals. Before we start investing, take a moment to envision what you want to achieve financially. Whether saving for a home, planning for retirement, or pursuing financial independence, identifying your goals will guide your investment strategy and keep you focused on what truly matters.
If you're new to investing, fear not! We all start somewhere, and the resources available can help you navigate this exciting world. Educate yourself about different investment options, such as stocks, bonds, mutual funds, and real estate. Websites like Investopedia, The Motley Fool, and Yahoo Finance offer valuable educational resources to build knowledge and confidence.
Building Your Financial Foundation:
Before diving headfirst into investing, it's essential to establish a solid financial foundation. Start by setting up an emergency fund to cover unexpected expenses like car repairs or medical bills. Aim to save at least three to six months of living expenses. This safety net will provide peace of mind, ensuring you can handle any financial challenges that come your way.
Budgeting and Saving:
Mindful spending is at the heart of minimalism. Take a closer look at your budget and identify areas to eliminate unnecessary expenses. Redirect the money you save towards investments, accelerating your journey toward financial freedom. Consider exploring high-yield savings accounts offered by online banks like Ally Bank, Marcus by Goldman Sachs, and Discover Bank. These accounts offer higher interest rates, allowing your money to grow. Setting up automatic transfers from your checking account to your high-yield savings account will effortlessly cultivate a savings habit.
Employer-Sponsored Retirement Accounts:
401(k) and Roth 401(k):
If your employer offers a 401(k) retirement plan, take full advantage! A traditional 401(k) allows you to contribute pre-tax income, reducing your taxable income for the year. The funds grow tax-deferred until you withdraw them in retirement. Some employers may also offer a Roth 401(k) option, where you contribute after-tax income, but qualified withdrawals are tax-free. Aim to contribute at least enough to receive the entire employer match – it's free money!
Individual Retirement Accounts (IRAs):
Supplement your savings or explore retirement options further by opening an Individual Retirement Account (IRA). Traditional IRAs allow you to contribute pre-tax income, while Roth IRAs involve after-tax contributions. Choose the option that aligns with your current financial situation and long-term goals. Institutions like Vanguard, Fidelity, or Charles Schwab offer IRA accounts.
Exploring the World of Stocks:
Ah, stocks – the thrilling playground of the investment world! Investing in stocks can potentially yield significant returns over time. If you're interested in diving into stocks, consider these steps:
Best Apps to start investing in Stocks:
Charles Schwab - Best app for beginners
Charles Schwab is the go-to app for beginner investors, offering an array of resources and educational content to help you navigate the world of investing and personal finance. With no minimum balance requirement and zero fees, it's an excellent choice to kickstart your investment journey.
Resources and education for new investors
Minimum balance required: $0 to join but $50 to receive the first time investor perks
Betterment - Best App for Automated Investing
Betterment simplifies investing with professionally managed portfolios tailored to your risk tolerance. Whether you're interested in traditional investing or socially responsible options, Betterment has got you covered. Start with no minimum balance for their digital service and enjoy a transparent management fee structure.
Professionally managed portfolios
Socially responsible investing options
Minimum balance required: $0 for digital service; $100,000 for premium service
Fees: Management fee of $4 a month or 0.25% annually
Invstr - Best app for education
Invstr combines learning, real-life investing, and a vibrant community to provide a unique app for beginners. Engage in a fantasy stock game, access investors' thoughts on stocks, and learn while having fun. Plus, it's free to get started with no minimum balance required.
Access to investors' thoughts on stocks
Minimum balance required: $0
Fees: $0, $3.99 for Invstr Pro
Acorns - Best app for saving
Acorns simplifies saving and investing with its user-friendly interface. Set it up, and it will automatically invest your spare change, making saving effortless. No minimum balance is required for the savings account, and the fees are minimal, making it perfect for busy minimalists.
Easy-to-use savings app
No need to constantly monitor
Minimum balance required: $0 for savings account
Fees: $3 or $5 per month depending on the service tier
Wealthfront - Best app for portfolio management
Wealthfront is a leading robo-advisor that manages your investments with ease. With a minimum balance requirement of $500, they offer professional management for taxable accounts and IRAs. Their transparent and competitive management fee ensures your portfolio is in good hands.
Large independent robo-advisor
Manage taxable accounts and IRAs
Minimum balance required: $500
Fees: Management fee of 0.25 percent of assets annually
Fidelity Investments - Best app for managing money all-in-one
Fidelity Investments offers a comprehensive suite of financial services, allowing you to manage your entire financial life in one place. From investment accounts to checking accounts, IRAs, and more, Fidelity provides a top-notch integrated experience. Plus, many services have no fees, and there's no minimum balance requirement to get started.
Comprehensive financial services in one place
Investment accounts, checking accounts, IRAs, and more
Minimum balance required: $0
Fees: $0 for stock/ETF trades, $0.65 per contract on options
Robinhood - Best app for active trading
Robinhood is the ultimate app for active traders who value a sleek interface and commission-free trades. Whether you're interested in stocks, ETFs, options, or cryptocurrencies, Robinhood offers a seamless mobile experience. Start trading with no minimum balance and enjoy the freedom from trading commissions.
Smooth interface with no trading commissions
Trade stocks, ETFs, options, and cryptocurrency
Minimum balance required: $0
Fees: No commissions for stock, ETF, options, or crypto trades
Public - Best app for learning about companies
Public is an excellent trading app that focuses on education and community engagement. Explore stocks, ETFs, and cryptocurrencies while accessing educational content, "town hall" meetings, and a social feed to discuss stock picks with other investors. Enjoy commission-free trades and dive deeper into the world of investing.
Trading app with educational content
"Town hall" meetings and podcast for learning
Minimum balance required: $0
Fees: Commission-free stock and ETF trades; $5 inactivity semiannual fee for accounts less than $20
Resources to Boost Your Investing Knowledge:
"Earn Your Leisure" - This popular podcast explores the world of finance, investing, and entrepreneurship through engaging interviews and discussions. Hosted by Rashad Bilal and Troy Millings, it provides valuable insights and stories from industry experts. Rashad and Troy created the first ever financial convention for black and brown communities to flourish. ✊🏽
"Jumpin' Off the Porch"- Created by renowned investor and educator, the Wallstreet Trapper's Jumpin' Off the Porch is a comprehensive resource that covers how to decide which style Of investing Best Fits You & How To Set Up A Portfolio
MyWallSt, owned by John and Emmet, is an exceptional YouTube channel dedicated to empowering beginner investors. With their expertise and passion for simplifying complex investment concepts, John and Emmet provide invaluable educational content. They break down topics into digestible bits, covering stock market basics, investment strategies, and more. Their focus on long-term investing and practical case studies enhances viewers' understanding and confidence. The friendly community fostered on MyWallSt creates a supportive environment for learning and growth. If you're a beginner investor looking to make informed decisions and achieve financial success, MyWallSt is an invaluable resource worth exploring.
These resources will complement your learning journey, providing valuable information and perspectives from experts in the field. Remember to always do your research and critically evaluate the information you come across to make informed investment decisions.
Remember, investing is a journey that requires continuous learning, adaptation, and patience. Enjoy the process, stay informed, and embrace the power of mindful investing.
Financial freedom is closer than you think!
Love and prayer,