How to Invest Money:  5 Steps to Start Investing w/Little Money

Investing is a discipline which plays not only on astute analysis and remarkable luck but also on people’s behavioral responses.

First, Invest in Yourself

Regardless of investing style, time frame, or philosophy, these great investors all have discipline, transact based on logical, informed thinking and do not let emotions drive their decision-making. 

How to Start Investing Your Money: Develop Your Investing Approach

Short of a formal education in finance, my five high-level steps for gaining familiarity with investing in the stock market are as follows:

1. Read a Lot About the Stock Market

As you read more, I really suggest approaching every article with a heavy dose of skepticism.

2. Start Looking into Individual Companies

Naturally, you will come across individual companies. You should identify companies consistently performing well or making strides to improve.

3. Consider Investing in Index Funds and Mutual Funds

Another strategy is to invest in index funds like exchange traded funds (ETFs), mutual funds or some combination of the best target date funds.

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