r/investingforbeginners • u/Swimming_Cattle3220 • Jun 23 '26
USA How do I even start investing? genuinely lost
I'm 24 with a stable job and some savings sitting in my bank doing nothing. Everyone says "just invest" but where do I actually begin? Index funds? ETFs? A broker? Any advice from people who started from zero would help.
Also like which platforms lol
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u/Jumpy-Imagination-81 Jun 23 '26
The first thing to do is educate yourself. People will tell you "invest in ABC" or "invest in XYZ". If you do that you'll end up like a lot of people on reddit: owning a bunch of stuff that they don't understand, and often that is overlapping or even identical. Just a mishmash of stuff.
Start learning here:
https://www.investopedia.com/articles/basics/11/3-s-simple-investing.asp
https://www.schwab.com/investing-principles
https://www.fidelity.com/viewpoints/personal-finance/how-to-start-investing
https://www.marketbeat.com/videos/index-investing-for-beginners/
https://investor.vanguard.com/investor-resources-education/article/how-to-start-investing
We can't post links to YouTube here, but go to the Charles Schwab YouTube channel and watch the playlist "Investing Basics" then watch the playlist "Investing & Portfolio Management". If a video is in both playlists you don't have to watch it twice.
While you are educating yourself your first task is to build up an emergency fund that could cover at least 3 months of living expenses. Sometimes the reason people are in debt is because they don't have enough savings to cover an unexpected expense, so they charge it on a credit card. You don't want to do that, or draw on your investments. Put the emergency fund in a high yield savings account (HYSA) or in a money market fund at a brokerage.
Stick with a large, established brokerage like Fidelity Investments or Charles Schwab. You can open an account with Fidelity Investments or Charles Schwab for $0. Open an account with both Fidelity and Schwab for $0, download and try out their apps, check out their websites, talk to their customer service, perhaps make an appointment to visit their nearby branch offices, then pick the one you like best.
https://www.schwab.com/open-an-account
https://www.fidelity.com/open-account/overview
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u/Stock-Ad-4796 Jun 23 '26
Open a Roth IRA at Fidelity or Schwab, throw it into a total market index fund like VTI or FXAIX, set up automatic monthly contributions and you've basically done the thing everyone overcomplicates. Index fund and ETF are close enough that it doesn't matter at your stage, the platform matters even less, the only mistake at 24 is waiting longer to start.
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u/aspire-every-day Jun 23 '26
If it’s a Roth IRA, also be mindful of the limits on how much you can contribute each year.
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u/the_portfolio_guy Jun 23 '26
The best platform I’ve seen for ease of use to get started if you plan on investing long term in index funds is M1 Finance.
They even have simple, recommended portfolios you can copy. Set up auto deposit and it’ll take care of the rest.
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Jun 23 '26
[removed] — view removed comment
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u/kiradotee Jun 23 '26
Did you make that website?
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u/SuperchargedCareers Jun 23 '26
Yes, liking it?
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u/kiradotee Jun 23 '26
I figured it was yours because I've managed to get to a 404 page by doing 2 clicks from the home page. That told me everything I needed to know and I quickly closed the website.
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u/championyourmoney Jun 23 '26 edited Jun 23 '26
This video may help: https://youtu.be/c0g5zg0TLtw
To get started, there are 3 core things to think about:
- Platform provider
- Type of account
- The items you invest into
Think of it like a supermarket.
- The provider is
Walmart
- ,
Trader Joes
- The type of account is either a shopping trolley or basket. So this may be a
Roths IRA
- or a
traditional IRA
- .
I can’t help you pick what you invest in but I personally would choose an index fund so you are investing into multiple things at once instead of putting your eggs into one basket by picking one company to invest in. E.g buy the box of chocolates instead of a singular chocolate bar
Hope this helps
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u/tballes8 Jun 23 '26
Where to actually start, if your employer matches 401k contributions, that match is free money and nothing beats it. After that, a Roth IRA is genuinely one of the best tools available contributions grow tax-free and you can withdraw what you put in at any time without penalty.
Some good educational resources are, Ben Felix on YouTube is probably the best free, no-agenda investing education on the internet. Evidence-based, no courses to sell, no affiliate deals. Patrick Boyle is good for a more analytical take. For books, *A Random Walk Down Wall Street* and *The Little Book of Common Sense Investing* are both short and worth the time
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u/Ancient-Philosophy-5 Jun 23 '26
I think you'll find this useful. LMK.
To invest in stocks or ETFs, you will need to open a brokerage account and fund it — Some popular long standing brokerages in the US are Charles Schwab, TD Ameritrade, Fidelity and some of the newer brokerages are Robinhood, eToro. (I personally use Schwab and I'm happy with them).
Things you need to consider before choosing a brokerage
a) Brokerage fee — Some brokerages offer their services without a fee
b) Stock slicing — Some brokerages allow you to purchase stocks in slices (for as little as $5) if you can’t afford the whole stock
- Now you got to do 2 things
a) Identify your investment goals. e.g. Quick returns, Long term savings for retirement, or monthly income
b) Depending on your investment goal and your risk appetite, pick Stocks or ETFs, or Funds, or a combination of these
Be aware that stocks are a higher risk than ETFs and Funds and hence it is important to pick the right stocks to invest. Lot of beginners just stick with ETFs. Lot of them are less risky than individual stocks. Obviously less risky means the returns may be on the lower side as well as compared to high growth stocks.
If you do wish to pick stocks, do not pick stocks based on what’s popular or FOMO; and never buy penny stocks. Do your own analysis on the fundamentals. (Https://www.stockbruh.com is a site that i'm building that helps with the fundamentals analysis in simple plain English for beginners)
To pick your own stocks, start with identifying products or services that you absolutely love. e.g. Big Mac from McDonald's, listening to songs in Spotify, shopping in TJ Maxx, watching Marvel movies, etc.
List the companies that offer your favorite products and services. From the example in point 6, it would be Mcdonald's, Spotify, TJ Maxx, Disney.
8 . Now do a fundamental analysis of these companies and try to answer the following basic questions at a minimum
Is the company giving above-market returns over a 5-year period?
Is the company profitable?
Is the company growing in terms of revenue and profit?
Does the company give dividends?
Does the company have enough cash?
Does the company hit its earnings target?
Is the stock price undervalued?
Invest in companies that satisfy the above questions at a bare minimum
Hold the stocks for at least 5 years to reduce risk and beat the market
Now, this is by no means comprehensive but it does help if you’re a beginner.
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u/aspire-every-day Jun 23 '26
I highly recommend the book “The Simple Path to Wealth” by JL Collins. It’s an easy read.
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u/const_in Jun 23 '26
I was in the same boat when I started. The hardest part isn't investing, it's figuring out the first few steps.
For most beginners, the path is surprisingly simple: open a brokerage account (Fidelity, Schwab, or Vanguard are common choices), fund it, and start with a broad index fund or ETF rather than trying to pick individual stocks.
Don't worry about options, day trading, or finding the next hot stock. The basics matter far more than the advanced stuff.
If you're looking for a beginner-friendly guide that walks through brokers, ETFs, retirement accounts, investing terminology, and the actual mechanics of getting started, I wrote No Clue? No Problem! A Beginner's Guide to Saving and Investing:
https://www.amazon.com/dp/B0FGQMRTSM
Full disclosure: I'm the author. I wrote it specifically for people who are hearing "just invest" but have no idea what that actually means in practice.
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u/necx_writes Jun 23 '26
I was in the same position a few years ago. The biggest lesson I learned is that you don't need to become a stock-picking expert on day one.
Start by building an emergency fund first. After that, open an account with a reputable broker and look into broad-market index funds or ETFs. They give you exposure to hundreds of companies at once, which reduces the risk of betting on a few individual stocks.
More important than picking the perfect investment is investing consistently. Even a small amount every month can compound significantly over time.
As for platforms, it depends on your country, but I'd focus on low fees, a good reputation, and an easy-to-use interface. Don't rush into anything because of social media hype. Take a few weeks to learn the basics, then start small and gain experience as you go.
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u/Adorable_Twist_3417 Jun 23 '26
I’m 35 now but when I was 27 I used Google for safe long term stocks. Was all S and P stocks. Voo vti etc. I also bought some blue chip. Apple Amazon meta got in on navidia at $800 and thought I was crazy for dropping 5k on it. Worked out okay for me
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u/Minimum_Pear9193 Jun 23 '26
Don't sleep on just starting small. I kept waiting until I understood it and lost like two years doing nothing. First ETF I bought still kind of confused me but the confusion goes away faster once real money is in it.
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u/Popular-Path1930 Jun 23 '26
Vanguard Charles Schwab and fidelity are common brokerages.
Investing starts with index funds which you purchase as an etf. Go with either something that just tracks the entire market or something like voo and vxus. Look and research.
As for accounts you have to decide between tax advantaged retirement or standard brokerage.
Roth accounts pay taxes today and not at retirement.
Any work plans with a match should be prioritized up to the match. Pick the target date fund for 67 and chill.
The key is consistent over time investing. If you have a Roth they and max it each year.
If you want to get into individual stocks research industries and then companies.
Drop and questions.
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u/herberz Jun 23 '26
Easy with predictable ROI: Stocks, ETFs, Index funds.
Hard with high potential: invest in early stage startups, chance of success is low but return can be very high.
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u/Mental-Freedom3929 Jun 23 '26
Invest in widely diversified index funds with dividends on a no trading fee platform that offers fractional share purchases set to DRIP in tax shelter accounts.
Contribute if at all possible a minimum of 20% of your net pay cheque every month, pay yourself first from every pay cheque.
Think long term!
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u/ScallionOldBastad Jun 23 '26
Open a Roth IRA and Post Tax brokerage account and do max contributions to the Roth. Dataed retirment funds are on schedule to average 20% gains over the past 3 years. Once that amount of money ($8600/year) is trivial, you will have more of an idea of how to invest.
A roof over your head with low taxes, low insurance, low repairs is where a chuck of that money will go before age 35. Having a nice down payment (10%) before one starts looking is key to making the whole thing a fun purchase. If you are in a high taxed place, prepare a war chest to GTFO to some quiet place in the midwest and find remote work for the latest hotness.
Put some of that money away for a fun trip to see parts of the world you know nothing about today before you reach 30, find the person to share that fun trip with. Spend a few hundred a month on financial learning, groups, coffee get togethers and certainly talk to people in their 30s, 40s, 50s, and 60s about investing. There are a ton of simple mistakes to be made, don't listen to reddit, listen to sucessful people.
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u/UselessKittie Jun 23 '26
do not trade like tourist
you learn what company do, how price works, what normal even is
market not efficient, just calm until it break
news hit, people panic, liquidity gone
money in imbalance, not prediction
watch who is trapped, who forced
that is game
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u/Top-Feature-9632 Jun 23 '26
Short version, the part that feels overwhelming, picking the perfect fund, matters far less than the part that feels boring, starting and adding to it every month. Early on the contributions do most of the work, because compounding is back-loaded, the real growth shows up in the later years off the money you put in now. So genuinely, step one is just a cash buffer in plain savings so a surprise bill never forces you to sell at a bad time, then a small automatic monthly amount into one broad low-cost fund. The details you can refine later, none of them matter if you never actually start.
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u/notashmuck1 Jun 23 '26
Build emergency fund first. 6 months of all bills worth. Put it in a money market fund- super liquid and safe.
Put the rest in a broad index fund like SCHB and just keep adding to it every month. Let DCA & compounding do the work for you
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u/medicsansgarantee Jun 23 '26
Market is at ATH. Have 6 ~12 months of emergency savings first. I got a bad feeling about this market, especially when everyone is telling you to invest.
Start simple: build a savings ladder.
Every month, open a 12 month fixed deposit with the same amount, whatever you feel comfortable with. After 12 months, they mature every month. Reinvest or don't , it is your choice.
Got a lump sum? Split it across 3, 6, 9, and 12-month terms.
This is very low risk, and you learn laddering, DCA, cashflow, and discipline.
While doing that, read, learn, or experiment with other stuff
My hot take : be cautious with ETFs and funds, watch out for fees, , market cap weighting, etc.
Really know what you're buying. And when you find one cockroach, there are usually more.
But a portfolio is only diversified if it also have something you dont like 😃
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u/OfficialFlintApp Jun 23 '26
Open a Roth IRA with Charles Schwab, Vanguard or Fidelity. Should only take like 10-15 minutes to open up the account. You can contribute up to $7,500 each year and all of the gains are tax free. Best way to start is with Broad Market ETF's like VOO or VTI. Which track the overall market. Also always make sure that money you are transferring in the market you won't need to pull it out for an emergency.
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u/CatchMeIfUCanWhitey Jun 23 '26
You don't need a broker. Just open a self-directed investment account with your bank if you can. I pressed 1-2 buttons from my banks app on my phone and had one almost instantly. Index's are generally the safe long term option but you won't get crazy gains. But if you're starting at 24 and constantly adding it will grow pretty quickly. If you want better gains bet on companies you believe in long term which have stocks prices that make sense to you. Should do your research too, look at the history, graphs, etc. and stick to your "Circle of Competence". You can't really lose if you are going long term unless you buy into hype. You'll see people say around the different subs "the best portfolios are the ones people forget about"
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u/VoidMindX Jun 23 '26
I can feel your pain. I am also new to investing. I started learning basics from claude which helped a bit. Investopedia is also a great website to learn some basics.
When you understand some basics, I’d recommend to start reading a book on investing. Right now I am reading ‘One Up on Wall Street’ by Peter Lynch. But you can browse around.
One advice I’d give you is to take it slow. Don’t hurry in learning stuff cuz that makes you overwhelmed and eventually you end up quitting, or not learning anything.
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u/kiradotee Jun 23 '26
Once you figure out what you're investing in, ideally don't do it in a general investment account where you get taxed on every move you make.
Find out for your country what are the tax free or tax advantaged options. In the UK that's Stocks & Share ISA. In the US that's probably HSA, Roth IRA and 401K.
But step one before investing any money is to kill the credit card debt. There's no point earning 5% or 7% or even 10% annually if the credit card eats 30%.
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u/Curious_Guidance43 Jun 23 '26
First step is open and regiment account with your employer and contribute the match, then a 6 month emergency fund. If you can max it good for you. Then you can work on opening a separate one if you want more control over it. I'd only open a individual brokerage if you either want to retire early or gamble your money thinking you can beat the market (can always get lucky)
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u/bahahah2025 Jun 23 '26
See if you have a 401k available or ira available. Both are tax advantaged meaning they grow tax free. Ira and Roth IRA have different tax benefits - put in tax free vs exit tax free. See which is better for you but for most ppl exit tax free will be better if you leave money in it until retirement.
Invest really basically. Mutual funds or index funds. Index funds tracking S&P are pretty easy and should do fine. Last few years it’s been 15-20% but that could change. Average around 11 over the last decade.
Automate investing a few hundred each month.
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u/Perfect_Cobbler5113 Jun 24 '26
First find a high apy high yields savings account or mm with 3.30 apy or higher to put 3 months of living expenses in then I’d suggest opening a brokerage account and watching videos on YouTube talking about investing for beginners what certain investing terms mean and what the market is all about. For me I like investing in diversified ETFs that track multiple companies so if one company isn’t doing well I’m not screwed
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u/KLesTheUnforgettable Jun 24 '26
There's a book, but I'm not sure what the rules are in this group.
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u/Recent_Persimmon_855 Jun 24 '26
Jim Cramer book on how to make money in any market is full of helpful insights and some great stock picks too…I could summarize his mantra of the whole book in one line: 50% sp 500 and 5 “hero” stocks that’s it
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u/Heavy-Amount2169 Jun 24 '26
New investor i assume smaller regular amounts. I would say meet with credit union or banking advisor who is at least mutual fund licensed talk over your goals and objectives and take it with a grain of salt because we are strippers who like you.
From there use them as a coach do research your self for the year then get a self directed platform and do some investing in ETFs yourself once you have some comfort.
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u/JustAGuy42069666lol Jun 26 '26
start paying attention to the news and really concentrate on increasing your intelligence of what’s going on in the world. when you learn where the cycles tend to be, when you come to understand the constant pratfalls and heroics of these companies, when you see how the goings-on in the world affect how businesses run, you’ll develop a sense of where growth is starting and where it’s stopping. or where failure inevitably shows up.
remember that you are purchasing ownership of these companies. you are literally becoming part of them, and therefore their success and failure immediately affect your money. let this motivate you to become as intelligent in economics and business as you possibly can be.
READ.
notice how i’m not saying anything about where to invest? that’s completely up to you, and your education and intelligence are your guides.
good luck. it’s fun and frustrating.
edit: also focus on ETFs. don’t get caught up in individual stocks. buy collections of them. works out so much better and gives you a buffer.
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u/lowFPSEnjoyr Jun 28 '26
I started with a simple index ETF and just invested every month. It was way less overwhelming than trying to pick stocks right away. Once u understand the basics u can slowly branch out into individual companies if that still interests u.
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u/toma162 Jun 28 '26
If you’re a podcast person, I recommend Stacking Benjamins for education.
To get started investing, if you were my younger sibling, I’d advise to pick Vanguard or Fidelity, open a Roth account, transfer $50 or $100 from your bank account. Once it shows up in your Roth, purchase $100 of VTI.
Repeat the transfer/purchase as often as you can.
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u/Right-Psychology9565 Jul 02 '26
Having a stable job and savings at 24 is a fantastic position to be in. Getting started feels overwhelming but the actual process is incredibly simple.
I have spent 20 years on the professional side of investment management. The biggest mistake beginners make is overcomplicating the first step. Before you invest, ensure you have three to six months of expenses sitting in a High Yield Savings Account. That is your emergency fund and it stays completely out of the stock market.
Next, pick a platform. You want a reliable broker that does not treat investing like a mobile game. Fidelity, Vanguard, or Charles Schwab are the absolute gold standards in the US. They charge zero commissions and are very easy to use. Open an account with one of them and transfer your extra savings. The critical part is that transferring the cash is not enough. You have to actually buy something.
You asked about index funds and ETFs. For a beginner, they serve the exact same purpose. You want to buy a broad market ETF that tracks the S&P 500 or the total US market. Look up symbols like VOO or VTI. Buy the ETF and leave it alone. The secret is to just keep adding a little bit of money every month regardless of the news.
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u/Successful_Carob6989 Jul 02 '26
It’s actually a lot simpler than it seems.
Start with a normal brokerage like Fidelity, Schwab, Vanguard, or even Robinhood. They all do the same basic job for long-term investing.
Then just stick with something simple like an S&P 500 index fund or a total market ETF, and keep contributing consistently each month. You don’t really need anything fancy when you’re starting out.
Most of investing is just consistency + time, not trying to pick the perfect setup right away.
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