Start Growing Your Money with Smart Investments
Even if you’re new, you can begin building wealth today. Learn the basics of investing, explore calculators, and discover the tools to get started.
Benefits of Investing
- Build financial security
Create passive income
Reach long-term goals like retirement or homeownership
What to Know Before You Start
Every smart investor keeps these basics in mind before putting money in the market:
Risk vs. Reward – Higher reward usually means higher risk
Fees – Watch for account or fund fees; they eat into returns
Diversification – Spread money across different investments
Time Horizon – The longer you invest, the more risk you can manage
Liquidity – How easily can you access your money if needed
Taxes – Know how interest, dividends, and gains are taxed
Stocks
What Are Stocks?
Stocks represent ownership in a company. If that company grows, your stock’s value may rise, and you may earn dividends (company profit payouts).
How to Buy Stocks:
Open a brokerage account
Fund your account
Search for a stock ticker (e.g., “AAPL”)
Choose how many shares or fractional shares
Place a market or limit order
Hold long term and reinvest dividends
Beginner-Friendly Investment Apps:
Robinhood – Easy to use, free stock trading
Webull – Fractional shares, great charting tools
Fidelity – Trusted, low-fee investing for beginners
Vanguard – Ideal for long-term index fund investors
What to Look For Before Buying a Stock:
Strong competitive advantage
Low debt levels
Fair valuation (P/E ratio, price-to-book)
Quality leadership
Positive trends
| Term | What It Means (Simple) | What’s Good or Normal |
|---|---|---|
| Previous Close | The last price the stock was at before today. | Compare it to today’s open, if it’s higher, people were more confident overnight. |
| Open | The price when the market first opened today. | It can jump or drop based on news or earnings. |
| Bid | The highest price buyers are willing to pay right now. | The smaller the gap between bid and ask, the better. It means lots of trading activity. |
| Ask | The lowest price sellers will accept right now. | Should be close to the bid for a healthy stock market. |
| Day’s Range | The lowest and highest prices today. | A small range = stable day. A large range = lots of movement (volatility). |
| 52 Week Range | The lowest and highest prices in the past year. | Near the high = strong growth. Near the low = might be undervalued (but research why). |
| Volume | The number of shares traded today. | High volume = lots of investor interest. |
| Average Volume | The usual number of shares traded per day. | If today’s volume is above average, something important may have happened. |
| Market Cap | The company’s total value (price × shares). | Small Cap: under $2B = higher risk. Mid Cap: $2–10B = moderate. Large Cap: $10B+ = safer. Apple is $4T = mega company. |
| Beta | How much the stock moves compared to the overall market. | 1.0 = average. Below 1 = stable. Above 1 = more up-and-down movement. |
| P/E Ratio | How much investors pay for $1 of company earnings. | Under 15 = value stock. 15–30 = average. 30+ = growth stock. |
| EPS (Earnings per Share) | Company profit per share in the last year. | Higher EPS = more profitable. |
| Earnings Date | When the company reports results. | Stock prices often move up or down after this date. |
| Dividend & Yield | What the company pays you for owning the stock. | 0–1% = growth company. 2–5% = income stock. |
| Ex-Dividend Date | You must own the stock before this date to get paid the dividend. | Hold before this date if you want the payout. |
| 1-Year Target | Analysts’ average guess for the stock’s price in one year. | It’s just an estimate not a guarantee. |
Why Invest in The Stock Market?
When you invest, your money grows with the company.
Example:
John buys 100 shares of Apple at $1 each ($100 total).
Later, the price rises to $2 per share now his shares are worth $200.
He just doubled his money without lifting a finger.
Why Buy Stocks with Dividend & Yield?
PRO TIP: BUY STOCKS THAT PROMISE “DIVIDEND & YIELD”.
Example:
Sarah owns 50 shares of Apple, and Apple pays $1 per share each year in dividends.
That means Sarah earns $50 a year, even if the stock price doesn’t change.
It’s like getting a small bonus for being an investor and if she keeps reinvesting those dividends, her money can grow even faster.
Bonds
What Are Bonds?
Bonds are loans you give to governments or companies. They pay you interest (called a coupon) and return your money at maturity.
What to Look For in a Bond:
Credit rating (AAA, AA, etc.)
Coupon rate and yield to maturity
Maturity date
Tax advantages (especially municipal bonds)
Whether it’s callable (can end early)
Where to Buy Bonds:
TreasuryDirect.gov – For U.S. savings bonds and Treasury bills
Brokerage Platforms – Fidelity, Schwab, or Vanguard offer corporate or municipal bonds
Bond ETFs or Funds – Great for beginners who want easy diversification
Mutual Funds
A mutual fund is an investment that pools money from many people to buy a mix of assets like stocks, bonds, and other securities. Instead of picking individual companies to invest in, you buy shares of the fund, and a professional fund manager handles the investing for you.
Benefits of Investing in Mutual Funds
Diversification: Your money is spread across many investments, lowering your overall risk.
Professional Management: Experts research and make the investing decisions for you.
Affordability: You can start with a small amount and still own pieces of large companies.
Easy to Buy and Sell: You can invest through most banks, brokerages, or investment apps.
Reinvesting Growth: Dividends and profits can automatically be reinvested, helping your money compound faster.
How To Get Started (Even with little money)
You don’t need thousands to start investing in mutual funds.
Here’s how to begin smartly:
Choose a Platform: Start with trusted apps like Fidelity, Vanguard, or Charles Schwab. They offer low or no minimums for beginners.
Pick a Type of Fund:
Index Funds – track the market and have low fees (great for beginners).
Target-Date Funds – automatically adjust based on your future goals (like retirement).
Start Small and Consistent: Even $25–$50 a month adds up over time.
Reinvest Automatically: Let dividends and earnings reinvest to compound your growth.
How mutual funds can grow over time
| Year | Amount Invested (Monthly $50) | Total Contributed | Estimated Value (7% annual return) |
|---|---|---|---|
| 1 | $600 | $600 | $643 |
| 5 | $3,000 | $3,000 | $3,581 |
| 10 | $6,000 | $6,000 | $8,626 |
| 20 | $12,000 | $12,000 | $24,489 |
| 30 | $18,000 | $18,000 | $56,436 |
Things to Watch Out For!
High Fees: Avoid funds with expense ratios over 1%; look for low-cost options.
Short-Term Thinking: Mutual funds are best for long-term growth, not quick profits.
Market Fluctuations: Your balance will rise and fall that’s normal. Pick a mutual fund that has shown a steady trend upward over the course of several years. Stay consistent.
Recommended Mutual Fund Brokers.
Fidelity Investments – These funds have no management fees and no minimum investment, which makes them ideal for students and beginners. SIPC-insured up to $500,000.
Charles Schwab – Massive mutual fund lineup with no-load, no-fee funds. SIPC-insured up to $500,000.
ETFs
A Exchange‑Traded Fund (ETF) is a pooled investment vehicle that trades on a stock exchange like a regular stock, but holds a portfolio of assets (stocks, bonds, commodities etc). When you buy an ETF share you gain exposure to the underlying portfolio of that fund, rather than buying each security individually. ETFs combine some of the characteristics of mutual funds (diversification, professional management) and stocks (intraday trading).
Benefits of ETFs
Diversification — With one ETF you can access hundreds or thousands of underlying securities, reducing “single-stock” risk.
Lower costs — Many ETFs have lower expense ratios than actively managed mutual funds because many are passively managed (index funds).
Trading flexibility & liquidity — They are traded during market hours on exchanges, you can buy/sell throughout the day.
Transparency — Many ETFs report their holdings regularly (often daily).
Tax efficiency — Generally, due to the creation/redemption mechanism, ETFs may generate fewer capital gains distributions than mutual funds.
Broad access — You can find ETFs covering many asset classes: stocks, bonds, commodities, international markets.
Disadvantages
They still carry market risk — if the underlying assets decline, the ETF will too.
Tracking error — Some ETFs may not perfectly match the index they aim to replicate, leading to performance deviations.
Liquidity & bid-ask spreads — Especially for niche or thematic ETFs with lower trading volume, the cost of entering/exiting may be higher.
Complexity risk — Some ETFs use leverage, derivatives, or very narrow themes which can increase risk and may not be suitable for everyone.
Costs still matter — Even though expense ratios are lower, fees, trading commissions, and other costs (especially for frequent trading) can add up.
How to Invest in ETFs
Open and fund a brokerage account that allows ETF trading.
Define your investment goals, risk tolerance, time horizon. This helps determine what kind of ETFs make sense (broad market, sector, bonds, international, etc).
Research specific ETFs: look at the fund’s objective, what it holds, its size, age, expense ratio, tracking error, liquidity.
Place the trade (buy the ETF ticker) similar to buying a stock. ETFs are bought and sold during trading hours.
Monitor periodically: check that the ETF still fits your portfolio and goals.
Understand exit strategy: you might hold long term for growth, or adjust allocation if your goals or market conditions change.
Recommended ETF Brokers
Fidelity – Low costs, no commissions on stock or ETF trades. SIPC-insured up to $500,000.
Vanguard – Pioneer of low-cost index funds and ETFs. Ideal for long-term, buy-and-hold investors. SIPC-insured up to $500,000.
Charles Schwab – Schwab offers its own line of ETFs with some of the lowest expense ratios in the industry, many as low as 0.03%–0.06%. SPIC-insured up to $500,000.
Real Estate
Builds wealth through rent income and property value growth
Start with: buying rental properties, REITs (Real Estate Investment Trusts), or crowdfunding (Fundrise, RealtyMogul)
ETFs & Index Funds
Simple, diversified, beginner-friendly
Look for: low expense ratio (<0.10%), strong tracking index (like S&P 500), and good liquidity
Buy through any brokerage like a stock
CDs & High Yield Savings
Great for low-risk investors
Look for: best available interest rate, term length that fits your timeline, minimal withdrawal penalties
Open directly through banks like Ally, Capital One, or Discover
Investment Calculators
Use our free tools to plan and project your financial goals.
Recommended Products
Real Estate
Builds wealth through rent income and property value growth
Start with: buying rental properties, REITs (Real Estate Investment Trusts), or crowdfunding (Fundrise, RealtyMogul)
ETFs & Index Funds
Simple, diversified, beginner-friendly
Look for: low expense ratio (<0.10%), strong tracking index (like S&P 500), and good liquidity
Buy through any brokerage like a stock
CDs & High Yield Savings
Great for low-risk investors
Look for: best available interest rate, term length that fits your timeline, minimal withdrawal penalties
Open directly through banks like Ally, Capital One, or Discover
FAQ
Is investing risky?
All investing involves risk, but diversification and patience help reduce it.
Should I invest if I still have debt?
Pay off high-interest debt first, then begin investing for your future.
What’s the difference between saving and investing?
Saving is short-term and safe; investing is long-term with higher growth potential.
How do I learn more?
Start with free guides like Rexburg Money Guide and books like The Simple Path to Wealth.
How much money do I need to start investing?
You can start with as little as $5 thanks to fractional shares on many platforms.
Investment Glossary
- 401(k): A retirement savings plan offered by employers where your money can grow tax-deferred.
- Callable Bond: A bond that can be paid back early by the issuer.
- Compound Growth / Compound Interest: When your money earns interest, and that interest also earns interest over time. Money making money on top of money.
- Competitive Advantage: Something a company has that helps it stay ahead of others, like brand loyalty or unique technology.
- Credit Rating: A grade showing how likely a borrower (company or government) is to pay back a loan.
- Crowdfunding (in investing): Pooling money with other people to invest in a project, like a property.
- CD (Certificate of Deposit): A bank account where you leave money for a set time to earn a higher interest rate.
- Debt Levels: How much money a company owes compared to what it owns.
- Diversification: Spreading your money across different investments so you don’t lose it all if one thing goes down.
- Dividend: Payments a company makes to its shareholders from its profits.
- ETF (Exchange-Traded Fund): A mix of stocks or bonds you can buy like a single stock.
- Earnings & Revenue Growth: Earnings = profit a company makes; Revenue = total sales. Growth means the company is making more over time.
- Expense Ratio: The percentage of your investment taken as fees each year by a fund.
- Fractional Shares: Buying just a piece of a stock instead of a whole share.
- High-Yield Savings: A savings account that pays more interest than normal.
- Index Fund: A fund that copies a whole market index, like the S&P 500, instead of picking individual stocks.
- Inflation: When prices go up over time, meaning your money buys less if it doesn’t grow.
- Liquidity: How quickly you can turn an investment into cash without losing value.
- Limit Order: Buying or selling a stock only at a price you choose.
- Market Order: Buying or selling a stock immediately at the current price.
- Municipal Bonds: Bonds issued by cities or towns, often with tax advantages.
- P/E Ratio / Price-to-Book: Ways to see if a stock is cheap or expensive. P/E = price ÷ earnings; Price-to-Book = price ÷ assets.
- REIT (Real Estate Investment Trust): A company that owns real estate and lets people invest in it without buying property themselves.
- Risk vs. Reward: Investments that can make more money usually also have a higher chance of losing money.
- ROI (Return on Investment): How much money you make compared to how much you put in.
- Stock Ticker: A short code that represents a company on the stock market, like AAPL for Apple.
- Time Horizon: How long you plan to keep your money invested before needing it.
- Valuation: Ways to see if a stock is cheap or expensive, including P/E ratio or price-to-book.
- Yield to Maturity: The total return you’d get if you hold a bond until it’s fully paid off.