Are you interested in investing, but not sure how to get started? Our guide breaks down the basics, showing you how anyone – even beginners with modest budgets – can start building wealth for their future.
Think investing is only for “finance people” or folks with tons of money? Nope. Investing today can be simple, approachable, and totally doable – even if you’re just getting started.
Whether your goal is "future you" freedom, a dream trip, or just not stressing about money later, here’s a guide to help you start investing with confidence.
Before you start investing
Before putting money into the market, make sure your financial foundation is solid so you can set yourself up for success.
1. Pay off high-interest debt first
Credit cards and high‑interest loans can grow faster than investments. Knocking these out first gives you a guaranteed “return.”
2. Build an emergency fund
Aim for 3–6 months of living expenses in a savings account. This keeps you from pulling money out of investments when life happens.
3. Invest in retirement first (Future You will thank you)
A good rule of thumb is to invest about 15% of your income into retirement accounts like a 401(k) or IRA. If your employer offers a match, don't skip it. That’s free money.
Guide to Investing Basics
Learn about the market
You don’t need a finance degree – just a little curiosity.
Easy ways to learn:
- Follow beginner-friendly investing podcasts or social creators
- Read simple investing books or blogs
- Take an intro investing course online
You’ll start to understand:
- How the stock market works
- Common investing terms
- Different investing styles and strategies
Arizona Financial members have access to the financial advisors at Arizona Financial Investment Solutions.1 Call 602-683-1000 to make an appointment today!
Investing Terms to Know
Here are some quick and simple investing terms to know.
- Stock – Ownership in a company
- Bond – A loan you give to a company or government that pays you back with interest
- ETF (Exchange‑Traded Fund) – A bundle of investments in one place (great for beginners)
- Mutual fund – A professionally managed pool of investments
- Dividend – Money paid to you from certain investments
- Capital gains – Profit when you sell an investment for more than you paid
- Diversification – Spreading money across investments to reduce risk
- Risk tolerance – How comfortable you are with ups and downs
Types of investing styles: Growth vs. Value Investing
There’s no “right” choice for investing styles – just different approaches. Many investors use a mix of both.
Growth-style investing
- Focuses on innovative companies
- Higher potential growth
- Can be more volatile
Value-style investing
- Focuses on established companies
- Slower, steadier growth
- Often less risky
The real cost of investing
Investing isn’t totally free, but it’s manageable when you understand it.
Costs may include:
- Taxes on dividends and long-term gains
- Fees from brokers or fund managers
Tip: Many modern investing platforms offer low-cost or no-fee options - especially for beginners.
Know your risk tolerance
Ask yourself:
- Time frame: Long‑term goals can usually handle more risk
- Risk capital: The more you can afford to leave invested, the more flexibility you have
- Goals: Short‑term goals usually need safer options
Your comfort level matters – investing shouldn’t keep you up at night.
How your investments can be managed
You’ve got options:
- Financial advisor: Personalized help, usually higher cost
- Robo‑advisor: Uses algorithms to build a portfolio for you
- Hybrid: Automated investing + access to a real advisor
Choose what fits your budget and comfort level.
Investing apps
With beginner-friendly apps and platforms, investing today can feel more like a habit than a hassle.
Fun, beginner‑friendly ways people invest:
- Round‑ups: Apps like Acorns invest your spare change from daily purchases
- Set‑and‑forget investing: Automatic weekly or monthly deposits
- Goal‑based investing: Separate funds for travel, a home, or future plans
Other popular beginner platforms include:
- Apps that offer fractional shares (you don’t need hundreds to start)
- Tools that combine banking, investing, and budgeting in one place
Small, consistent moves add up.
Investment options to get started
Common beginner‑friendly choices include:
- ETFs: Instant diversification across sectors like tech, real estate, or energy
- Money Market Funds: Lower risk, short‑term investments
- Mutual Funds: Professionally managed portfolios
- Stocks: Higher growth potential with higher risk
- Bonds: More stable, income‑focused investments
Diversify Your Portfolio
Smart diversification looks like:
- Investing across industries, company sizes, and styles
- Mixing stocks, bonds, and index funds
- Adding money consistently over time
This helps smooth out market ups and downs.
Start small, stay consistent
You don’t need perfect timing, tons of money, or expert knowledge to start investing. Learn a little, invest consistently, and give your money time to grow. Future you is already cheering you on.
1 Investment and insurance products and services are offered through Osaic Institutions Inc. Arizona Financial Investment Solutions is a trade name of Arizona Financial Credit Union. Osaic Institutions and Arizona Financial Credit Union are not affiliated. Products and services made available through Osaic Institutions are not insured by the NCUA or any other agency of the United States and are not deposits or obligations of nor guaranteed or insured by any credit union or credit union affiliate. These products are subject to investment risk, including the possible loss of value.
