Millennial couples, start building wealth with this 4-step investing process
A while back I received a call from someone named Dave. He’s 34 years old, married with one kid, living in Sacramento. This was his situation,
“My wife and I have been saving for a while. All our savings are in a bank savings account — earning nothing. I’ve thought about the stock market, but I want to make sure I’m doing the right thing. Any helpful advice will be greatly appreciated.”
If this sounds like your situation, this post will be perfect for you.
If you’re putting all your savings into a bank savings account, you’re like one of the servants addressed in the Parable of the Talents. In this story, Jesus tells of a master who went on a journey and left three of his servants to manage some of his money. To one of his servants he gave five talents. To another he gave two talents. To one servant he gave one talent.
The servant that had received one talent went out and buried it because he was afraid. When the master came back, he was disappointed with that servant because he didn’t go out and grow his resources. That’s what happens when you take all your savings and put it into a bank savings account.
You’re not growing the resources that God has blessed you with.
If you want to start growing your money, I want to make sure I give you the tools to do it with wisdom. There are a lot of risks out there, and you want to make sure you’re not putting your hard-earned money through unnecessary risk.
I like to break investing down into four simple steps, and that’s exactly what I’m going to walk you through here in this post.
Before You Start Investing
Before you ever start investing, you need to make sure you have at least one month’s worth of expenses saved in a bank savings account. This is in case you run into an emergency, or want to spend on an unexpected expense. You don’t want to resort to a credit card. This savings account will act as your credit card. That’s why I like to call it a “credit card savings account.”
If you have a pretty volatile job, your income is volatile, or if you’re nervous about seeing your money go up and down in the stock market, then you want to make sure you have a little more money saved up. This can be as much as three months’ worth of expenses.
I don’t recommend you keeping any more than three months’ worth of savings sitting in a bank savings account.
Alright, now that that’s out of the way, let’s talk about the four simple steps to investing.
1. Get Your Employer 401k Match
The first step is to get the 401k match from your employer. If your employer pays you to contribute to your 401k by matching your contributions, whatever percentage it is, make sure you’re getting that free money.
Let me be very clear when it comes to your 401K, you do not need to max out your 401k. All you need to do is contribute enough to max out your company match.
2. Max Out IRA Contributions (if income allows)
Step two is to max out an IRA account. You can open an IRA account with most brokers. If you’re confused about where to start with opening an IRA account you can reach out to my firm. We’re a Registered Investment Advisor. We’d be happy to help you.
An IRA is great because you can deduct your contributions to the IRA, plus your money that grows in this account grows tax-free.
Please note, depending on your income, not everyone qualifies to put money into an IRA. You need to make sure you talk to your accountant before trying to contribute to an IRA. If you don’t qualify, you can be penalized for contributing to that account.
3. Open an Online Brokerage Account
The third step is to open an online brokerage account and start investing in good companies. There are countless online brokers out there. I think the coolest one for beginning investors is the M1 Investing app.
The M1 investing app is cool because it allows you to buy fractional shares. This means you can start investing in expensive stocks with as little as $5. If you want to learn more, or open an account, you can use this link: https://mbsy.co/sRPSJ. If you use that link to open your account, you’ll get a little extra money put into your account.
4. Buy a Rental Property
The fourth step in the process is to buy a rental property. Once you’ve used the stock market to save up some money. You now have enough capital to start buying a rental property. Rental property is great because you can make extra income, and pay absolutely no taxes. In addition to making extra money, you’ll also be diversifying your assets.
The Bible tells us in Ecclesiastes 11:2 that diversity is very important when it comes to investing. This Bible verse tells us, Invest in seven ventures, yes in eight, because you don’t know what disaster may lie ahead.
There you have it — four simple steps to start investing wisely.
Make sure you have your saving set up before you start investing. Then get your company match in your 401k. After that set up an IRA — if you qualify. Then open an online brokerage account and start buying stocks. Finally, once you’ve built up some capital, you can start investing in rental property.
Pick The Best Stocks And Invest With Just $5
I hope you found this post helpful. If you want to learn how to make money in the stock market check out my free masterclass, the $5, 5-Minute Investing Plan. I’ll show you how to pick the best stocks, and how to set up your account in as little as five minutes.
Here is a link to the free masterclass: https://financialseeds.net/5-dollar-5-minute/
Let Me Help You Develop Your Personal Investing Strategy
If you want to develop an investment plan that’s based on your unique situation, visit my website https://greenfinancialsolutions.net/investment-management-advice/. My Registered Investment Advisory firm will examine your 401k, help you set up an IRA, set up the best online brokerage account – with the best stocks, develop a rental property investing strategy, and much more.
If you know someone that needs to hear this, please share this post with them, and together, we may be a blessing to someone else.
Thank you for taking the time to check out this post. May God bless you on your financial journey.