2. Not Sure What To Do? Diversify

“Diversification is the best tool used to combat uncertainty,” according to Erica Nicole Grundza, financial planner at Betterment.

Diversification is the investing equivalent of not putting all your eggs in one basket. To diversify, invest in stocks and bonds across different industries and geographies. You can do this easily with funds or by owning at least 20 individual stocks alongside a bond fund.

An easy beginner’s approach is the two-fund portfolio, consisting of an S&P 500 fund and a U.S. Treasuries fund. An S&P 500 fund like SPDR S&P 500 ETF Trust (SPY) holds 500 of the largest and most successful U.S. companies. A bond fund like iShares U.S. Treasury Bond ETF (GOVT) invests in U.S. government debt securities with various maturities.

A bond’s maturity is the length of time the bond is outstanding before it gets repaid. Short-term maturities, ranging from one year to four years, are the least risky. Long-term maturities, expiring in 10 years or more, are the riskiest.

For more ETF investing ideas, see 6 best ETFs to buy for 2025.

3. Learn By Doing

“One of the best ways to learn is to get in the game and follow your investment,” according toPatrick Kilbane, partner and wealth advisor at Ullmann Wealth Partners.

Tracking an investment’s headlines and movements can help you gain confidence to invest more, says Kilbane. Or, you might learn you would prefer the guidance of a professional. Either way, you’ll know more about your best path forward.

4. The Strategy That Works Is The One You Follow

“Your ideal investing plan is one you really follow,” according to Georgi Todorov, founder and CEO of Create & Grow. “If you cannot be consistent, fancy plans have little use,” Todorov continues.

You can build wealth simply through consistency. If you are short on time and money, set up an automated investment into a two-fund portfolio for $50 or $100 monthly. Raise the amount whenever you get a pay increase. In 10 years, you should be pleasantly surprised by your account’s value.

An easy program like this will always produce better results than a strategic stock-picking plan you never implement.

5. Timing Is Everything

Nicole Romito, partner at Private Vista LLC says, “Investing in any part of the market is a recommended strategy for anyone with at least a five-year time frame before they need access to their money.”

You need five years of leeway to plan for the market’s normal ups and downs. The longer your timeline, the more flexibility you have to wait out a downturn—rather than selling when stock prices are at their lowest.

If you can’t leave your money invested for five years, Romito recommends a high-yield, FDIC-insured savings account instead. Rates in these accounts are currently ranging from 3.7% to 4.3%.

6. Plan For Losing So You Can Win

Lukendric Washington, owner of Manifest Wealth Management, says, “A common mistake I see is people jumping to invest without having an earmarked emergency fund.”

Cash savings are your first line of defense against financial emergencies. Without a cash safety net, you may have to reach into your investment account to fund an insurance deductible or an unexpected health procedure. If stock prices happen to be down, this move undermines your returns.

Many experts recommend an emergency account balance large enough to cover three to six months of your living expenses. You can keep the funds in a high-yield savings account to maximize returns.

7. Focus On The Escalator, Not The Yo-Yo

Ben Loughery, founder and CEO at Lock Wealth Management, describes investing as “riding an escalator while holding a yo-yo.” Loughery explains, “The stock market moves up over time like an escalator, and daily price swings mimic a yo-yo moving up and down.”

Focus on the escalator. The long-term average growth of the stock market is about 7%, net of inflation. This 7% average includes the yo-yo of short-term volatility, which can introduce price changes of 30% to 50%. In other words, you can stay invested through these short-term price swings and still generate 7% annual returns over time. You won’t gain 7% every year, but the good years should more than offset the bad ones.

8. Tune Out The Noise

Gloria S. Garcia Cisneros, CFP and wealth manager at LourdMurray, offers this advice: “Don’t let headlines or your emotions dictate your investing decisions.”

Stock prices rise and fall. Headlines can position these normal cycles as world-ending or life-changing. They’re not. The lengthiest stock market downturns have remedied themselves in 15 years or less. Most are resolved within five years.

Cisneros notes that “your behavior can impact returns more than the ups and downs of the stock market.” For example, selling during a market crash can lock in losses and prevent you from experiencing any gains when stock prices start rising again.

The better approach is to stay calm and do nothing when stock prices fall. The market will eventually recover and return to growth. Once your unrealized losses reverse, the downturn becomes irrelevant. Note that unrealized losses are negative positions on stocks you still own. The losses are not realized—that is, made permanent—unless you sell the stocks for less than you paid.

9. Aim For Average

“In investments, particularly in the stock market, achieving average performance can make you rich,” according to Robert R. Johnson, Professor of Finance at Heider College of Business, Creighton University. Johnson continues, “This is the entire premise of passive stock market index funds.”

You don’t need to beat the market or buy into your neighbor’s hot stock tip. You can get rich through consistent, ongoing market-level performance. The numbers prove it. You can amass about $570,000 by investing $500 monthly for 30 years. Increase the timeline to 35 years, and the ending balance rises to about $835,000. Both figures assume a stock market average annual return of 7%.

10. Not Investing Costs You More

“Not investing is costing you more than investing,” says Elizabeth Ralph, wealth strategist and intuitive investor at The Spiritual Investor.

“You don’t need a lot of money to start,” Ralph explains. “If you invest small amounts consistently, it can grow into significant wealth over time.” On the other hand, if you choose not to invest, you are missing wealth opportunities with each passing day.

11. Time Starts Now

Technically, “time starts now,” is a quote from “Chopped” host Ted Allen. But the phrase captures the urgency of investing sooner rather than later. Ty Powell, financial advisor with Florida Financial Advisors agrees. In Powell’s words, “Start investing now. Don’t wait.”

The urgency relates to how compounding works. You start investing with a base amount, and then earn gains on top. The gains then produce more gains. The more you let this cycle repeat, the more wealth you can create—even if you never invest another dollar after the base amount.

The thing is, compounding takes time. Your results can be good in 10 years, impressive in 20 years, and incredible in 40 years. But if you don’t invest today or this year, your opportunity shrinks—because your timeline gets shorter.

Start Now And Stick With It

Learning how to invest shouldn’t delay your wealth program. Save to an emergency fund and start investing soon, even if your budget is small. A simple two-fund portfolio that delivers average results is enough. Invest regularly and stay in the market for the long haul—that’s the simple secret to incredible wealth creation.