Introduction
Growing up, financial struggles were the norm for many of us. Living paycheck to paycheck and constantly worrying about making ends meet is a reality too familiar for some. However, it’s time to change that narrative and break the generational curse of financial instability. In this blog post, we will explore how to start investing in stocks and build eternal wealth, ensuring financial security for generations to come.
Declaring an End to Financial Struggles
Money has always been an issue in my family, and living paycheck to paycheck was the norm for me too. But I declare that the generational curse stops with me. The generational curse stops with you, Michelle. And for everyone listening, the generational curse stops with you. Eternal wealth is our new narrative, and it all starts now with investing financially and spiritually.
Investing: The Key to Financial Freedom
Have you ever wanted to start investing but were unsure where to begin? You might have heard that you need a lot of money to invest or that investing is too complicated. These are just myths that we’re going to bust today. Whether you think you need a lot of skills to understand charts and graphs or you’re stuck in analysis paralysis, you’re in the right place. We’re going to demystify investing and show you how to start building wealth now.
Common Myths About Investing
- You need a lot of money to start investing: This is a common misconception. You can start investing with small amounts and gradually increase your investment as you learn and grow.
- Investing is too complicated: Many people are intimidated by the charts, graphs, and financial jargon. However, investing can be simple with the right guidance and tools.
- You need a lot of skills to invest: While understanding the basics is important, you don’t need to be a financial expert to start investing.
Money Talk: Normalizing Conversations About Money
Talking about money has always been a taboo subject. Growing up, people didn’t talk about money. Friends don’t talk about money. But we need to change that. We need to talk about money if we want to make more of it. By sharing our stories and seeking real help, we can start to make positive changes in our financial lives.
Michelle’s Story: A Journey to Financial Stability
Michelle, a 39-year-old single mom and therapist, shared her story with us. She earns around $85,000 a year with monthly expenses of around $4,000. Living paycheck to paycheck has been a constant struggle for her. Despite working multiple jobs and even securing a high-paying contract position, Michelle found herself back in financial instability once the contract ended.
Michelle’s parents lived paycheck to paycheck, juggling multiple jobs to make ends meet. This cycle continued for Michelle, but she is determined to break the curse. Now, with a more stable job and extra income, she wants to build wealth and ensure a financially secure future for herself and her son.
The Parable of the Talents: A Biblical Perspective on Stewardship
The Parable of the Talents, found in Matthew 25:14-30, offers valuable insights into financial stewardship. The story illustrates the importance of using and growing what we have been entrusted with. Three servants were given different amounts of money by their master. The first two invested their money and doubled their holdings, while the third, out of fear, buried his money and gained nothing.
This story teaches us three key lessons:
- Stewardship: We are responsible for what we are given. It is our duty to manage our resources wisely.
- Growth: We are expected to grow and develop what we have been entrusted with.
- Fear vs. Action: Taking initiative and using our resources wisely is rewarded, while fear and inaction lead to loss.
Getting Started with Investing
To start investing, the first step is to open a brokerage account. A brokerage account is a bank account specifically for buying and selling stocks. Selecting the right brokerage is crucial. Look for one that is easy to use, beginner-friendly, and has the lowest fees.
Choosing the Right Brokerage
When choosing a brokerage, consider the following factors:
- Ease of Use: Ensure the platform is user-friendly, especially if you are a beginner.
- Fees: Look for a brokerage with low fees to maximize your investment returns.
- Educational Resources: Some brokerages offer educational resources to help you learn about investing.
Step 1: Open a Brokerage Account
Opening a brokerage account is your first step towards investing. While there are many options available, my favorite is Vanguard. Why Vanguard? It offers some of the lowest fees in the industry and is user-friendly, making it perfect for beginners. Plus, I’ve done the research for you, ensuring you’re in good hands. Click the link in the description to open your free Vanguard brokerage account today. It’s quick, easy, and free!
Step 2: Set a Budget
One of the most common questions I receive is, “How much should I invest?” The great news is you can start with as little as $1. This method, known as micro-investing, allows you to invest small amounts of money over time. Whether you set aside $5, $10, $20, or more each month, the key is consistency. Treat your investment like a monthly bill—this ensures you prioritize it and stay committed. As you start to see returns, you’ll likely want to increase your investment amounts.
Step 3: Pick One Stock and Buy It
When it comes to choosing stocks, simplicity is key. For beginners, I recommend starting with an index fund, specifically VOO (Vanguard S&P 500 ETF). This index fund contains stocks from the top 500 companies, offering a diversified investment without the need to select individual stocks. Historically, VOO has averaged 10% returns over time, with this year seeing over 20% returns. Investing in VOO allows you to own a piece of major companies like Apple, Microsoft, and Nvidia.
Partner Spotlight: Coachline
Before we move to the next step, let’s talk about our partner, Coachline. They’re offering a free Get Started With Stocks guide, packed with actionable steps to help you understand stocks, set an investing budget, and open a brokerage account. Subscribe to Eternal Wealth and visit shawntonate.com/stockguide to claim your free guide. This resource is a game-changer for new investors!
Recap
Let’s summarize the key points:
- Open a Brokerage Account: Start with Vanguard for low fees and ease of use.
- Set a Budget: Begin with as little as $1 and increase over time. Consistency is crucial.
- Pick One Stock and Buy It: Start with VOO, a beginner-friendly index fund.
By following these steps, you can build a solid investment foundation. Remember, the journey to financial abundance starts with small, consistent actions.
Action of the Week
Your action for the week is to open a brokerage account with Vanguard. It’s simple, straightforward, and can be done in just a few minutes. Let me know in the comments when you’ve opened your account—I’d love to cheer you on!
More Resources
I recorded an entire podcast around this topic. Check out Eternal Wealth Episode #3: Stock Market Investing for Beginners: 3 Steps to Invest TODAY (Even with $20)
YouTube: https://youtu.be/itxwv1_Z4wA
Apple Podcast: https://apple.co/4bNFGtJ
Spotify Podcasts: https://spoti.fi/4bH71xr
Keywords: money, Investing, Money Management, Christian Finance, Bible, Generational Wealth, Financial Freedom, Debt Free, Budgeting, Single Mom, how to invest, investing for beginners, how to start investing, what stocks to buy, index funds, index fund, what is an index fund
