Learn How To Invest

Welcome. This is where you’ll begin to learn how to invest. But first, and even more basic, you must learn how to save. . . .

The first principle is that you must live below your means—otherwise you have nothing to invest, just debt. Yes, learn how to invest. Become comfortable with the time-proven principles about investing. But for a long time, your savings rate (percentage of your paycheck) will be much more important than your investment rate of return. Start early. Save religiously. Invest wisely.

This page will help you learn what we call common sense investing. It’s not hard—in the sense that it is remarkably straight-forward. It may not be easy—in the sense that is is somewhat counter-intuitive. We’re constantly bombarded with messages from people trying to sell us something, and many of us get tempted with a dangerous dose of greed.

A quick glance at commonly asked questions and answers might also be helpful:

Select Video Tutorials to help you Learn How To Invest

Start with these, then explore others on this site. All are excellent videos. The transcripts can help you make best use of your time.

Thumbnail
Quality,
Length
Title
Description
Video thumbnail for youtube video Introduction to Ten Rules for Financing Life - FinancingLife.org
5-star rating (1:56)
Learn the Ten Rules of Investing For Beginners: start saving early, diversify your investments, minimize costs, stick to your plan!
ABCs of Common Sense Investing
5-star rating (03:08)
The ABCs of Investing For Beginners using the alphabet as a tool to help you remember. A fun intro to investing.
Develop a plan, an investment policy statement
4-star rating (6:17)
Develop a plan, an investment policy statement. Don’t strive for perfection. Put it in writing. It will improve.
Video thumbnail for youtube video Rule #2: Invest Early And Often - FinancingLife.org
4-star rating (2:10)
The secret to harnessing the miracle of compound interest is to invest early and often: automatic payroll investing.
Video thumbnail for youtube video Rule #3: Never Bear Too Much Risk, or Too Little - FinancingLife.org
4-star rating (4:59)
Stocks are volatile, but you can control investment risk with asset allocation. It’s your most important decision.
Video thumbnail for youtube video Rule #4: Diversify Stocks, and Diversify Stocks With Bonds! - FinancingLife.org
4-star rating (4:59)
Investing 101 is to Diversify! Diversify! The market does not compensate you for risk that can be diversified away.
Video thumbnail for youtube video Rule #5: Never Try To Time The Market - FinancingLife.org
4-star rating (4:58)
Don’t attempt market timing. Nobody can consistently win . That’s a loser’s game. It’s speculating, not investing.
Video thumbnail for youtube video Rule #6: Use Index Funds - FinancingLife.org
4-star rating (5:05)
Use index funds. Your goal is extreme diversification for lowest possible cost. So use passive funds (index funds).
Video thumbnail for youtube video Rule #7: Keep Costs Low - FinancingLife.org
4-star rating (4:58)
Keep costs low! Use low cost index funds. Mutual Fund costs are the big reason investor returns are below average.
Video thumbnail for youtube video Rule #8: Minimize Taxes - FinancingLife.org
4-star rating (5:00)
Investing for dummies: use tax-advantaged accounts. Defer taxable gains. Avoid high turnover funds.
Video thumbnail for youtube video Rule #9: Keep It Simple - FinancingLife.org
4-star rating (4:59)
Keep it simple. Investing is important, but it doesn’t need to be complicated. Ten rules help you keep it simple.
Video thumbnail for youtube video Rule #10: Stay The Course - FinancingLife.org
4-star rating (4:53)
Stay the course. Choose the appropriate mix of stocks/bonds for your situation, then invest for the long haul.