How to Start to Invest My Money

Step 1

Write down your goals. The National Endowment for Financial Education recommends beginning your investment plan with a detailed list, including the time frame and amount needed to reach each goal. This will help you narrow the huge number of investment options into a smaller pool of choices that have historically helped others meet goals similar to yours.

Step 2

Keep emergency funds. If the market drops and your car breaks down at the same time, you won’t want to tap into depressed investment assets to repair a muffler. The Securities and Exchange Commission recommends beginning a savings account to cover six months of expenses. This will give your new investment portfolio a buffer as you begin picking investments to meet your longer-term goals.

Step 3

Decide on the tax structure of your investments. If you’re going to save for retirement, ask your human resource people at work about a 401k or similar plan. This will allow you to save money on taxes while you invest. If you aren’t eligible for a workplace plan, research traditional and Roth IRA plans. Some of these plans allow you to contribute as little as $50 per month to an eligible mutual fund if you sign up for automatic monthly investments.

Step 4

Find appropriate investments for your goals. Many beginner investors start with mutual funds. Mutual funds will allow you to pool money with many different investors to buy diversified investments. The Investment Company Institute offers a free online guide to mutual funds that can help you understand how to choose a good fund for your portfolio.

Step 5

Open and fund your accounts. If you enjoy working alone, an online brokerage firm may be your best option because fees are considerably lower on investment trades than a full-service brokerage house. Full-service brokers may cost more, but you’ll have an investment professional who has passed tests required to help people find suitable investments for their goals. Because not all brokers are created equal, ask friends for referrals and check the BrokerCheck tool on the Financial Industry Regulatory Authority’s website to make sure your potential broker has a clean track record.

Merge Your Money

Checking

Start by listing out all current checking accounts with balances to determine which ones (if any) you’d like to merge into one account.

If You Decide to Merge Accounts:

• Transfer any automatic payments from canceled account to new account
• Visit bank office to cancel one account and add spouse to other account
• Order new checks with joint account information

If You Decide to Keep Separate Accounts:

• Decide if you want to allow each other access to both accounts
• Visit the bank office to add each other to your accounts
• Switch any automatic payments that need to be rerouted

Savings & Investments

Start by listing out all current accounts with balances and decide whether to merge accounts or allow joint access.

If You Decide to Merge Accounts:

• Visit bank office to set up any new access or accounts
• Contemplate new investments

If You Decide to Keep Separate Accounts:

• Look over your retirement accounts together, even though you won't be able to merge them
• Change any beneficiary information to your spouse

Credit Cards

List all credit cards and balances and decide which cards you’d like to keep. Also, decide if you want to add each other on as designated users of each other’s cards.

If You Decide to Get a Card for Joint Purchases:

• Open a new account
• Decide on parameters for purchases
• Set up a schedule for paying bills

Insurance

Car

• Pick the better car insurance plan and adjust your rate for a married couple

Health

• Compare health insurance plans and choose the better option

Life

• Decide how much life insurance you need and purchase a plan
• Insure your home/belongings as a married couple
• Investigate long-term care insurance policies
• Change any beneficiary information to your spouse

Loans

• List all student loans, car loans, mortgages, and other liabilities
• Talk to lending institutions about consolidating payments
• Discuss adding each other to the titles of cars, property, and other assets

Services

Compare cell phone plans and pick your provider

If you have two Internet service accounts, see how much you'd save if you combined

Get rid of any duplicate accounts for cable, phone, etc.

If you belong to different gyms, see if one offers a joint rate