Investing can feel like learning a new language. The acronyms, the jargon, the risk it’s enough to make most of us put it off for “someday.” I get it. I didn’t start investing until my 30s. No one ever explained IRAs or compounding to me growing up, and I definitely didn’t have a mentor handing me a step-by-step playbook.

Instead, I stumbled into investing after a casual chat with a friend who mentioned retirement accounts. That sent me down a rabbit hole of accounts, terms, and YouTube explainer videos. I got a little overzealous at first (okay, a lot), opening accounts at multiple institutions trying to find the perfect place to park my cash.

So, if you’re at the base of the mountain wondering where to begin or feeling a little lost mid-hike this guide is for you.

Why Even Bother Investing?

Let’s be honest: just saving money in a bank account isn’t going to cut it in the long run. Here’s why investing matters:

  • Outpace inflation: Over time, your money loses value if it’s just sitting in a low-interest account.
  • Build long-term wealth: Compound growth can turn modest, consistent investments into something real over time.
  • Create financial freedom: Investing helps you build future income streams that don’t require clocking in.

You don’t need a finance degree or six-figure salary to start. You just need a plan.

Get Your Safety Net in Place

Before you put a single dollar into the market, make sure you’ve got an emergency fund — ideally 3 to 6 months of expenses — tucked into a high-yield savings account. This buffer keeps you from needing to sell investments during a downturn just to cover car repairs or rent.

It is also ideal to not have credit card debt. Debt like student loans and car loans are often outpaced by the returns on Investment accounts, but credit card debt will siphon away any potential benefits. If you need help with that check out my article on debt payoff strategies

Not sure where to park that cash? Some online banks and brokerages (like Fidelity or SoFi) offer yields around 4%, which beats the 0.01% you might get at a big-name bank.

Know Your Account Options

Different goals call for different kinds of accounts. Here’s a quick cheat sheet:

  • 401(k) / 403(b): Retirement accounts you get through work. Often comes with employer matching — free money!
  • Traditional IRA / Roth IRA: Retirement accounts you open yourself. Roth IRAs let you grow your money tax-free.
  • Taxable Brokerage: More flexible. No tax benefits, but no restrictions either. Great for goals that don’t involve retiring at 65.

I started with a SEP IRA and a taxable brokerage. Later I opened a Roth IRA as a self-employed person. That one was less intuitive, but worth learning about if you’re freelancing or running a business. Alternatively if you like more advantages for a bit more paperwork a solo 401k can be ideal (I learned this in hindsight).

Pro tip: Some brokerages don’t offer fractional ETF purchases, which can be limiting if you’re investing smaller amounts. On the plus side, Schwab does offer fractional shares of individual stocks. Fidelity, though, offers fractional shares and better interest on idle cash.

Start with Index Funds (ETFs)

Here’s where a lot of folks get tripped up — they assume they have to become a stock picker or spend hours analyzing charts. Nope.

Start with index funds. These are bundles of stocks designed to track the market, like the S&P 500.

Why I love them:

  • Diversification without the work
  • Low fees
  • No guesswork or trying to beat the market
  • Solid historical returns

Why I dislike them:

  • Lack of Granularity with who my money is going to.
  • Shift in Assets the stocks the fund are holding can shift in way that may not align with you values.

Note: if you’re curious to learn about investing by your values check out my article on sustainable investing.

If you’re unsure where to begin, I highly recommend checking out the Three-Fund Portfolio strategy from Professor G (Nolan Gouveia on YouTube). His guides helped me find a setup that aligned with my age and risk tolerance — without overwhelming me with options. His videos break it down simply.

That was the backbone of my first portfolio, and it’s still what I default to when I’m not sure what to do.

Invest Consistently (Even A Trickle)

Let’s talk about the not-so-sexy magic of dollar-cost averaging. This just means you invest the same amount of money at regular intervals—weekly, monthly, whatever works. Over time, you’ll buy more shares when prices are low, and fewer when they’re high. It smooths out the highs and the lows, and can help ease the anxiety of is today a good day to buy!?

You don’t need to start with a huge amount. Even $5 a month is better than nothing. The key is starting and keeping it going.

If you can automate it, even better. Whether it’s:

  • a small deduction from your paycheck
  • an auto-transfer from your checking account
  • credit card rewards going straight into a brokerage account.

…automation makes it easy to stay consistent. Eventually, you stop noticing the money leaving, but you absolutely will notice it growing.

Bonus: My Messy Start (So You Can Learn From It)

When I got serious about investing, I kind of went overboard. I opened accounts at multiple places, trying to optimize for everything: returns, perks, flexibility. I landed on Fidelity for their 2% cashback credit card that deposits directly into a brokerage account. Super convenient for lazy investing.

Speaking of lazy investing the friend who got me into the conversation about an IRA and sparked this whole investment jounrey uses a platform called Acorns which has something they call Round-Ups which invests your spare change. I was almost drawn in by their platform, but the monthly cost turned me off. I’m cheap. But I would recommend their platform based on a close friends positive experiences with them.

https://app.impact.com/campaign-promo-signup/Acorns-Invest-Spare-Change.brand?execution=e1s1&#/?viewkey=signUpPreStart

I also opened a SEP IRA, Roth IRA, and brokerage account at Charles Schwab because my friend recommended it. I was a bit unimpressed with the tone of their customer service. I could practically see the finance advisor scoff over the phone, at my paltry sum of starting cash. I feel like their platform is ideal for long term investments, and scalability. As my retirement funds grows I feel like managing on Schwab overall will be a boon.

Moral of this short story: No platform is perfect, but don’t let indecision keep you from starting. Choose what feels intuitive and gets you on your way.

What’s Next?

This post is your warm-up hike. Here’s what we’ll explore in future guides:

  • How to build a low-maintenance, effective portfolio
  • Understanding your personal risk tolerance
  • Making your investments more tax-efficient
  • When (and if) you should consider individual stocks

Start Small. Stay Consistent. Repeat.

You don’t have to be rich to invest. You don’t have to be an expert. You just have to begin and keep showing up.

The most powerful force in investing isn’t the market. It’s your consistency. Even a trickle, if it keeps flowing, can shape a whole landscape.

The hardest part is starting. Once you take that first step whether it’s opening your Roth IRA, automating a small monthly investment, or just learning the difference between an ETF and a mutual fund you’ve already done more than most.

Investing isn’t just for finance bros or spreadsheet nerds. It’s for you. It’s for anyone who wants their money to work a little harder than just sitting in a checking account.

If you’re still feeling stuck, I’ve been there. That’s why Nectar Flow exists to walk through this stuff with you.

Let’s get that flow going.

~ Melon