How to Start Investing Money For Beginners

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Investing money feels so adult, right? Because of which, oftentimes, there’s a daunting connotation associated with the subject. But hey, if indeed you are an adult and haven’t looked into investing yet… it’s time to step up!

Whether you feel investing is a foreign language or your financial status leaves much to be desired, today’s ONE major tip will make the whole process far easier than you could’ve ever imagined.

One Tip To Make Investing Money Simple For the Beginner

So, there’s three major stock indexes you need to know (eventually): 

  • Dow
  • NASDAQ
  • S&P 500 

But we’re only going to focus on the S&P 500. Why?

94% of all professional stock pickers can’t beat the S&P 500 index fund over a 15 year period.

Yeah, sure, these pros might be able to beat it for one year, maybe even two years. However, in the long run —  and that’s what we’re in this game for, the long run — the S&P 500 index fund can’t be topped. Nope, it’s just not going to happen. 

Think about that for a minute. Here are all of these guys and gals getting their MBAs in finance. They study this stuff and know these companies and these stocks like you know the back of your hand. This is literally their job — what they wake up and do 9 to 5, 365 days a year. And yet, 94% can’t beat the S&P over a duration of 15 years. Wow!

What is The S&P 500?

It’s a market index that measures the stock performance of the 500 largest companies in the United States. So, anything outside of the U.S. doesn’t apply. 

It works like this…

You choose an individual stock, like:

  • Apple
  • Google
  • Netflix
  • Amazon
The S&P 500 Index Fund Is Great For Investing Your Money

Instead of putting $400 in Amazon alone, you would put $400 in the S&P 500. Now, right off the bat, your money is completely diversified because it has a little portion of every one of those stocks. Hence, it’s so much safer and way more conservative. And it’s definitely more diverse than putting all your eggs in one basket — or even, say, 5 or 6 different stocks. 

Why is this important to you? 

Because you’re not investing for 1, 2, or 3 years. You’re investing for the long haul. For your retirement.

Warren Buffet, who is arguably one of the smartest investors / wealthiest men in the world, agrees. Or, I should say, I agree with him! His recommendation — for the beginning investor — is to invest money in an S&P index fund because you don’t have to worry about anything.

Seriously, though. Waking up every day and wondering if the stock market is going to crash or if Amazon is doing well or if Apple somehow took a nosedive in production… won’t even be a concern!

Investing in the S&P 500 will Alleviate Your Worries

But how do you get started exactly?

Well, for that juicy bit of detail, plus:

  • Terms you need to know in the financial industry
  • Bret’s (my husband) suggestion for investment management companies
  • Why Mutual Funds aren’t a good fit for a newbie investor
  • What is and why you need to know about Diversification

And, legit, so much more, then you need to check out The Chalene Show podcast below. This particular episode happened to release the very same day there was a big stock market crash and I can’t even tell you the thousands of DMs I got from people thanking me for this show. It’s a real game changer for you and your future!

Don’t forget to subscribe to TCS for weekly tips and tricks that’ll help you get your WHOLE life right, from finances to habits to sleep to personal development to relationships to you name it!

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