How To Invest: Getting Started for Beginners

How To Invest: Getting Started for Beginners

This video is dedicated for those who are are just starting out with investing or are beginners. I discuss a fast approach and slow approach to investing, where I show you what I mean. The fast approach is literally how to buy a stock on a brokerage website as to one how to invest example. The slow approach involves laying the knowledge and account setup foundations so that you can invest.

The slow approach involves getting to know yourself and asking yourself questions like: what is my current financial state of affairs, where do I want to go in life financially, how do I want my investments to turn out at the end of my life?

It’s generally a good idea to equip ourselves with knowledge before we do something, and investing should require that we learn as much as we can before we jump in and just buy or sell stocks or other assets.

Forgive yourself for the mistakes your future self will make because making mistakes in investing is inevitable. None of us can ever know enough about investing, not even Warren Buffett or Charlie Munger, so we try to do the best we can with what we learn. It’s important for us to try to make prudent decisions with a calm, collected mind. And then we should also try to stay aware of the effects of our actions and allow this to guide our learning and how we can continue to improve as investors.

I welcome you on this journey as I take us through a financial/investing take on psychologist Abraham Maslow’s Hierarchy of Needs, and I’d encourage us to ask what is our current financial state, and do we think we’re in a stage of crisis, surviving, safe, growing, thriving, or FIRE: Financial Independence, Retire Early?

I also share a series of questions we should all ask ourselves when it comes to our financial and investing ideas and plans for ourselves and those (like family members) who could be affected by our actions.

One way to think about our investment and savings goals is in the form of an exponential growth graph where I illustrate the amazing, magical effect of compounding a combination of our savings and investments. By investing our saved money, we can create a beautiful nest egg through consistent investing someday.

When it comes to starting your investing approach, I liken it to an analogy of building a house. We need a solid foundation, framing, and installations of various house components to set ourselves up for building a solid path toward investing.

I share my opinion about what I think are the minimum financial and investing accounts single individuals in the US should have. I discuss how you could choose a few approaches to brokerage accounts when it comes to retirement or individual accounts, and potential investing style approaches in the form of self-directed or robo-advisor styles.

After we’ve set up this foundation, it’s time to get to learning even more (even before we buy our first stock)! I encourage us to invest like Warren Buffett and Charlie Munger. I happen to really enjoy “Invested” by Danielle Town and Phil Town. Danielle started out as a beginner investor and I think her book provides many helpful lessons we can all learn from. This book also provides practical investing criteria how to steps.

The journey towards FIRE (Financial Independence, Retire Early) is one filled with much gratitude and enlightenment, and I look forward to making more investor friends. Let’s follow each other on my Instagram @ michellemarki!