On this page you will walk through a simple checklist of five steps to help you decide whether you are ready to start investing and how to do it responsibly.
Five steps to get started
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Have 3 to 6 months of emergency savings
Before you invest, build an emergency fund that can cover three to six months of your essential expenses. This safety net keeps you from being forced to sell investments at a bad time if something unexpected happens.
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Open a brokerage account
You will need a brokerage account to buy ETFs and other investments. Robinhood can be an easy place to start, but you can also search for “commission‑free brokerage accounts” online and choose the platform that looks best to you.
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Set a timeline
As a personal rule, avoid investing money that you plan to use within the next three to five years. No one can predict when the next housing crisis, pandemic, or major geopolitical event will hit, and during those times the entire stock market can drop.
That means you might need to wait months or even years before selling your investments. As long as you avoid selling your ETF below the price you bought it, you should be fine. In fact, those downturns are often some of the best times to buy more.
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Set a budget
Decide how much you will contribute on a regular schedule—weekly, every two weeks, or monthly. If you are nervous, starting with a small amount like a $5 weekly contribution is perfectly fine. As you get more comfortable, you can increase the amount if you want to.
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Start buying ETFs
Consider setting up a recurring purchase of ETFs like VOO (Vanguard S&P 500 ETF) or VTI (Vanguard Total Stock Market ETF). These are examples of low‑cost, diversified ETFs that give you broad exposure to the market. There are many other low‑cost diversified ETFs you can research as well.