Building wealth is one of the most important steps toward financial freedom, and one of the best ways to do that is through investing. However, investing often comes with a lot of jargon and complex advice that can feel overwhelming if you’re just getting your feet wet.
The good news is you don’t need to be an expert to begin — in fact, the below five simple steps are enough to get your money working for you.
1. Have a solid starting pad
Before you start investing, make sure your financial foundation is solid. Ask yourself:
Do I have an emergency fund to cover three to six months of expenses?
Do I have high-interest debt (i.e. credit card debt) that should be paid off first?
Can I comfortably set aside money to invest without risking my day-to-day needs?
It’s important that your immediate financial needs are covered before putting money into the market. This also makes it easier to determine how much you can comfortably set aside for investing. One way to organize your finances as you try to reach a solid standing is by using a budgeting app like Monarch Money. The app’s user-friendly platform lets you customize your dashboard, so you always see what’s most important to you first. It comes with a fee, but you can test it with the 7-day free trial.
Monarch
Cost
$8.33/month (billed $99.99 annually); $14.99/month (billed monthly) – get 50% off your first year with code CNBC50
Free trial
7-day free trial is available before subscribing
Standout features
Net worth tracker, investment portfolio tracking, goal creation and progress tracking, budgeting and expense tracking
Categorizes your expenses
Yes, but users can modify
Links to accounts
Yes, bank and credit cards, as well as IRAs, 401(k)s, mortgages and loans
Availability
Offered in both the App Store (for iOS) and on Google Play (for Android); web version also offered
Security features
Utilizes industry-leading security practices, according to Monarch’s website
Terms apply.
Pros
Easy-to-navigate money-tracking dashboard, including a net-worth tracker
Easily syncs to your bank, credit cards and other financial accounts
Users can add collaborators for free
Seven-day free trial
Cons
Subscription is pricier than competitors
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