How To Invest for Beginners (Step by Step)

#66: Jeremy Schneider, founder of Personal Finance Club, has doubled his net worth by reinvesting since he retired at age 36. Think of this episode as an Investing 101 course, where Jeremy and Erika guide us through the basics of investing. It’s completely beginner-friendly, even if you’ve never invested! We cover the most common questions you have about investing, including:
- what is a stock?
- what is an index fund?
- ⁠what should I invest in?
- what is Compounding Interest?
- The 50-30-20 rule for investing

Follow the podcast @erikataughtme across platforms. 

Timestamps:
00:00 - Intro
02:01 - Jeremy's Money Philosophy
07:19 - How to start investing with $10 a month
14:01 - What is a Stock?
18:42 - What Stocks should I buy?
26:28 - What is S&P 500?
31:22 - After understanding index funds, what's next?
36:13 - Which index funds should people be buying?
43:17 - One common mistake of people in investing
44:54 - Sins when it comes to investing
53:59 - The best time to invest
55:06 - Jeremy Taught Me

[Erika]

if you liked this video please leave a comment :) It'll help the algorithm know to show it to more people - I really think this is the video that can help so many people!

[HugoBergmann-lund]

I admire your dedication to educating your audience. We all aim for financial stability and a better life. Achieving this is possible through wise investments, frugal living, and careful budgeting. I'm grateful that I learned the importance of working hard for financial freedom at a young age.

[shellylofgren]

Recently bought some recommended stocks and now they are just penny stocks. There seems to be more negative portfolios in 2024 with the markets tumbling, soaring inflation, and banks going out of business. My concern is how can the rapid interest-rate hike be of favor to a value investor, or is it better avoiding stocks for a while?

[williamyejun]

My portfolio doesn’t just cater to dividend stocks. I hold $VFIAX (S&P 500 index fund) in my Roth IRA and $VTI (Total Stock Market ETF) in my taxable brokerage account. Two of my largest holdings. The individual dividend stock positions all complement the index holdings.

[wilsonkrusk]

Still with Tesla stock, investors can never be sure what will happen next, bearish periods ultimately establish a new set of stocks to buy and watch while setting the stage for a robust new uptrend. I have been reading articles of people that grossed profits up to $250k during this crash, what are the best stocks to buy now or put on a watchlist?

[ericmendels]

Just discovered your channel with this video -- I was able to think about my situation and I'm curious to know best how people split their pay, how much of it goes into savings, spendings or investments, I earn around $90K per year but nothing to show for it yet.

[PotBellyPete]

What's the best approach to capitalize on the current market conditions? I'm deliberating on whether to diversify my $200k stocks portfolio.what strategies should I employ?

[leemolnar]

Loved Erika’s (cart metaphors) visual. And Jeremy’s 2 Rules:
1. Live Below Your Means
2. Invest Early and Often

[yaquelynelizethgodinez]

Great video. Im a huge Blcktken300 fan and love your videos on it.

[gautamvishwanatham]

i like the way host (although knowledgeable) is asking very basic questions to guest with example and the guest explaining everything, perfect for those new or not new to investing to learn

[PBlueturtle]

I have another illustration besides the one that Erika mentions at 25:10. Individual stocks are like one dish on a plate, like steak or a baked potato. If you only buy one individual stock, it’s like only getting a baked potato to eat. On the other hand, Index Funds are like a sampler plate where you get a little bit of everything to try out. This makes it easier for me to understand the whole thing.

[Justyouraverageguy]

The how to start investing with $10 a month really hit home and makes it so doable and practical for me since lack of money is always a problem. Really gives me hope instead of despair instead of “wishing that one day when I have enough money I can invest then if at all”

[kylebhiro]

can easily say, out of any piece of information i have read in my life regarding investing, or ANYTHING, i can already tell this episode with Jeremy has single handedly impacted my life so much. THANK YOU.

[TiffanieMangArt]

this is the BEST explanation of investing for beginners i have ever heard

[ItsAWildLife]

My question is, at first he talked about buying investments that pay you, in addition to increasing value. But then he talked about buying index funds. These don’t pay dividends, correct?

[aramispadilla]

You should do a new video about Blcktken300 ! I really like you’re mellow delivery and you seem like you’re very knowledgeable. I watch lots of influencers and you always seem very calculated and know exactly what you’re talking about and understand it. You’re better at explaining complicated things simply, than any other person on youtube keep it up brother!

[tayla]

This video was great and in-depth, I sent it to some family! Thank you for explaining the difference between mutual/index funds vs individual stock. That’s where I’ve gone wrong in the past and I’ve avoided investing because I was afraid to lock in on one company.

[lizziee]

Wow this episode gave me so much Intel and made things more simple. Very well explained and definitely doable. I really enjoyed how everything was explained literally a 101 lesson makes me really understand investing better. Thank You Erika for this interview 🙏

[niasteadley]

Love Jeremy! I couldn’t click on this podcast quick enough. Erika - You so wonderfully illustrated all of the points Jeremy was making - what a dream team! I love that y’all are making investing more understandable and therefore more attainable for more people. Great episode!

[richardbpuffert]

This is the best description of simple investing that i have seen. Thank you!