Investing as a beginner: 10 Steps to Success

The smell of coffee filled the office, exam papers were piled up on the desks and ten voices vied for attention. And then, through the chatter – “I cashed out my stocks for the down payment”.  

I was floored. I always thought investing was for the rich or the knowledgeable. People reinvesting generational wealth, financial advisors who took a cut of your profits, property developers – that sort of thing. I paid my rent on time, I was paying off my loan each month and I had a savings account that I drained every 3 months to go on holidays. I was doing ok, right? Or, at least, I was doing the same as everyone else around me…  

I couldn’t have been more wrong. It turned out numerous colleagues were investing for their futures, privately managing their own money. They weren’t financial advisors or investment bankers, they were normal teachers, earning an average salary, just like me. And while they quietly got on with building wealth, I was completely reliant on my salary – and getting left behind.   

Investing as a beginner…10 Steps to Success

Money is not something to keep quiet about, nor is it something to be afraid of. There’s no point regretting my financial mistakes of the past, as long as I reflect and learn from them. But that doesn’t mean you need to make those same mistakes – read on to find the 10 Steps to Success as a beginner investor so that instead of getting left behind, you lead the way when it comes to financial success.   

1. Define your goal  

Take time to work out what you really want. Do you want the capital to start your own fearless business, or do you want to take a break from work and travel? Maybe you’ve decided the grind just isn’t for you and you want to retire early so you can drink from a coconut on a beach everyday. Whatever your goal is, set a number.   

2. Make a plan  

You wouldn’t start driving somewhere you had never been without using a map, and investing is exactly the same. Your goal is the destination, but you need a roadmap to get there. Take a few hours for yourself, go to a coffee shop or somewhere that brings you peace and take the time to work out exactly what you need to do to meet your goal. If you are struggling to structure your plan, click here to get a plan that does the work for you.   

3. Expect the unexpected   

There is absolutely no point in throwing all of your money into your investment account and leaving nothing for yourself in case of emergencies. Before you invest, establish an emergency fund of approximately 3 months basic expenses. Having a safety net will give you peace of mind in case of disaster like vet bills, car problems or even losing your job.  

4. Pay yourself first  

Whether your money comes in through a consistent salary or commission only, you should be saving before you do anything else. Whatever stage you are at in your journey, set up automatic transfers for your emergency fund or investment account. Do it right now – I’ll wait.   

Paying yourself is as much a form of self-care as getting your hair or nails done. After all, by making saving and investing a priority, you are looking after your long-term health.   

5. Know your risk tolerance  

Risk tolerance is extremely personal and I am not going to tell you how much or how little risk you should take with your finances.  To know your risk tolerance, you have to be brutally honest with yourself. Are you going to panic when the market dips, and sell your assets? Are you an adrenaline junkie who will gamble on risky commodities? The main thing to remember is that even though there may be dips of a month, a year or even a decade, the market always rebalances. Most women tend to take a more cautious approach to investing, but it is essential to find a balance that allows for growth while managing risk effectively – that’s the Fearless Girl way.   

6. Get straight in there – don’t try to time the market.  

The best time to start investing is now. It doesn’t matter whether your asset costs a dollar more this week than it did last week, or whether someone heard a rumour that the price is going to fall. It is the time you spend in the market that is going to earn you compound interest, not how you time your entry into the market. If you have a lump sum and it gives you the scaries to invest it all in one go, consider dollar-cost averaging by breaking it into chunks and investing it over a 6 month period.   

7. Minimise the cost to you  

Money management costs money and that’s the sad truth of it. Whether you use ETFs or active funds, there will be a price to pay. Be vigilant about potential fees that may eat into your portfolio. The difference between a fund that costs 0.5% to manage and a fund that costs 1% may sound minimal but remember that compound interest will turn that into a huge loss of money in your pocket over time. Another thing to be wary of is a financial advisor who takes their fee as a percentage of your portfolio – if you really want to use one, try to find a reputable advisor who charges their fees upfront.   

8. Separate your eggs   

Picture this: you’re at the races, and a horse with a beautiful mane catches your eye. You place your bet on it – after all, it looks magnificent so it should perform magnificently, right? But at the starting gun, your horse stumbles and never recovers. That is exactly the same as choosing one stock option and throwing your money behind it. Your horse may come in first or it may fall. In the investment world, spreading your assets wisely reduces the risk to you. Embrace diversity by choosing a global ETF which tracks thousands of companies.   

9. Set it and forget it  

Every month, I pay myself first into my investment account. Every 3 months, I log into that investment account and spend 80% of that ‘unsettled cash’ on my choice of global ETF and 20% on my choice of global bond. I then log back out and forget about it for the next three months.  I ignore the noise around me about prices and market crashes, and you should do the same. By now you should have created a solid strategy – trust yourself and follow it.   

10. Patience is a virtue  

You’ve set your goal, created your plan, and made your first investment so the hard part is done, right? Wrong. Being patient and allowing your investments time to grow is the hardest part of the process. Resist the urge to react to short-term market fluctuations and stay invested. After all, it is about the time you spend in the market, not about timing the market.   

Fearless Girls know that taking charge of your financial future through investing is not just about accumulating wealth; it’s about gaining independence, security, and the ability to turn your dreams into reality. Define your goals, manage risks with confidence, and remember that every step you take today is contributing to a more empowered financial future – and those coconuts on the beach.  

Will you be following the 10 steps to successfully investing as a beginner? Let us know in the comments or tag us on Instagram @fearlessgirlfinance_