1) Build a base first
Before any stock picking, make sure you’ve got:
- Emergency cash (3–6 months)
- High-interest debt under control
- A steady monthly surplus
This creates a base that keeps you from making emotional decisions later.
2) Start with index funds
Index funds give you broad market exposure without needing to choose individual stocks.
A simple starting allocation:
- 70–90% in a broad stock index like SPY or QQQ
- 10-30% in individual stocks
It’s the foundation that compounds quietly over time.
If you don’t have a brokerage account yet, start here: Brokerage Accounts.
3) Add a starter allocation
If you want to learn stocks, keep it small.
- 5–10% max to start
- 1–3 positions you actually understand
- Time horizon of years, not weeks
Your goal is learning and discipline with a low activity level. Allocation can increase as you gain more experience with the market.
4) Automate contributions
Consistency matters more than timing. Automate a bi-weekly deposit so you’re investing even when you’re busy.
5) Review infrequently
Daily noise trains bad behavior. A weekly or monthly check-in is enough for most people.
The bottom line
Investing is about building a simple system that can compound for a long time.
Start small. Stay consistent. Let time do the heavy lifting.