How to Start Investing and Build Financial Freedom

Today, I’m drawing on my background in the financial industry (and the degrees that came with it!) to talk about a topic that resonates with many of us: financial freedom. Note–this isn’t financial advice.

Here are some basic practical tips I’ve used that could help you, too.

Start with the Basics

Before diving into investing, make sure your foundation is solid. Here’s how to begin.

1. Open a High-Yield Savings Account

   This is the easiest way to make your money work for you. High-yield accounts, like the one I use with AMEX, pay more interest than standard accounts. For example, AMEX currently offers 3.8% interest with no fees. It’s a no-brainer for your emergency fund.

2. Pay Down High-Interest Debt

   If you have credit card debt with high interest, pay that off first. Think of it as a guaranteed return on investment–you’re saving money by not paying interest.

3. Set an Investment Budget

   Decide how much you can set aside for investing each month. Even $50 or $100 a month is a great start.

Easy Ways to Start Investing

If you’re new to investing, these options are beginner-friendly and don’t require a big upfront investment: 

Index Funds and ETFs

1. Index Funds and ETFs

   These are great for first-time investors because they’re diversified and low-cost. You can invest in funds that track the overall market (like the S&P500), spreading your risk across hundreds of companies.

2. Dividend Stock

   These are stocks that pay you a portion of the company’s earnings (monthly/quarterly/yearly). It’s a great way to build a passive income stream while your investment grows over time.

3. Certificate of Deposit (CDs)

   If you want a safe, low-risk option, CDs offer better interest rates than savings accounts. The catch is you need to leave your money untouched for at least 12 months.

4. Real Estate Crowdfunding

   Apps like Fundrise let you invest in real estate projects with as little as $10. It’s a simple way to diversify your investments without buying property outright.

Add Some Passive Income Streams

Beyond traditional investing, here are a few creative ways to grow your income.

1. Cash-Back and Rewards Programs

   Apps like Bilt let you earn points on everyday purchases, including rent, without fees. It’s not going to make you rich, but every little bit helps.

2. Rental Income

   If you have extra space, rent it out on Airbnb. If you’re able to invest in property, renting can provide steady income.

3. Selling Stock Photos

   If you’re into photography, upload your work to sites like Shutterstock. You’ll earn money every time someone downloads your photos.

4. Content Creation

   Platforms like TikTok and YouTube allow you to turn your creativity into income. Once you build an audience, you can earn through ads or sponsorships.

Use Technology to Your Advantage

Apps and platforms have made investing easier than ever. Here are a few I recommend:

1. Robinhood

   A beginner-friendly app for buying and selling stocks, ETFs, and certain cryptocurrencies (the main ones). It’s very intuitive and has no account minimums.

2. Fidelity

   Like Robinhood but offers more tools and research for people looking to dig deeper into investing.

3. Robo-Advisors

   Platforms like Betterment and Wealthfront do the work for you. Just input your goals, and they’ll create a portfolio tailored to your needs.

4. Crypto Platforms

   If you’re curious about crypto, apps like Coinbase make it easy to get started. Be cautious–it’s a volatile market. 

Stay Consistent

The truth is that investing is a long game. You’re not going to get wealthy overnight, but small and steady steps will pay off in the long term.

• Start Early: The sooner you start, the more time your money has to grow.

• Be Consistent: Automate your monthly investments so it becomes a habit.

• Diversify: Spread your money across different types of investments to reduce risk.

• Keep Learning: Follow financial news, read books, or watch videos to build your knowledge.

You don’t need to be an expert or have a lot of cash to start investing. The key is to begin now, even with small amounts, and stay consistent. Over time, you’ll see the benefits of your efforts. Financial freedom is all about taking control of your money–and your future.