Growing up, I figured investing was something super rich people did because they had money to burn.
It intimidated me, but I figured Id never have to worry about it.
Taking your first college midterm.
Riding the subway in New York.
Investing is another overwhelming task thats not as hard as it seems.
It does get complicated, though.
Its one thing toread a guide on how to get started with investingwe need those guides.
In practice, though, investing usually happens gradually.
At least in my experience, you dont jump in all at once.
Its more like a cautious dip into the pool, and youlearn a lot about it as you go.
Like a lot of people, I assumed investing was too risky.
I thought it was like playing the lottery.
These are commonmisconceptions when you dont know much about investing.
Really, though, this was an excuse.
There are so many streets, so many stops and transfers.
Its really something for fancy city folks.
Except that its not.
It might take a few rides, but youll figure it out.
I Wanted Free Money
I got lucky.
Its free money, they told me.
It was probably something like50% of my contributions up to 6% of my salarya common scenario.
Should I invest in my companys 401(k)?
People have a hunch its a good deal, even if theyre not sure why.
People have a hunch its a good deal, even if theyre not sure why.
401(k)s get a lot of crap, but theyre actually pretty awesome.
Even though my coworkers compared it to free money, I was still reluctant to get started.
I wanted all of my money!
Youll never even miss it, a coworker told me.
Just set aside 10%, and youll never even know its gone.
Oddly enough, I didnt.
(Its also helpful that 401(k) contributions are pre-tax).
And this helped assuage my fear that investing was too risky.
I had no idea what that meant or what I was doing, but hey, I got started.
One day, I got a statement from our companys new investment firm.
I had something like $7,000 in my 401(k).
I had no idea Id accumulated that much money over the past few yearsmoney I didnt even think about.
Granted, there was something bittersweet about it.
I mean, I couldnt blow this cash on sushi and fancy camera equipment or anything.
Still, it wasmine.For the first time ever, I had anactual net worth.
Most importantly, it was my first real taste that investing really could pay off.
I started looking at the data.
I started learning what a return and capital gain meant and figuring outall the complicated investing terms.
Sure, Id read aboutportfoliosanddividendsand stuff; I knew their definitions.
I wanted to save for travel, and I wanted to save for a move.
Soon after, though, it was time to optimize.
When youre ready to dig into your investing, the jargon and rules arent that overwhelming.
They make more sense when you could experience them first-hand.
Thats just me, thougha start to finish investing guidemight very well help someone go from zero to sixty.
I dont think it works out that neatly for most investors, though.
Like most obstacles, it starts with a single step.
Whatever it is, you dont have to figure it out all at once.
Illustration by Sam Woolley.
