I Want To Start Investing. What Do You Suggest I Invest In?

Rachel: First, you need to make sure you’re in a position to start investing. That means you need to make sure your tuition is paid for (in cash), you’re out of debt, and you have a pile of cash in the bank as an emergency fund.

If you have all of that, you’re good to start investing. To start, if you’re working somewhere and they offer a 401(k) or 403(b) with a match, make sure you’re taking advantage of that. Next, I would suggest a good Roth IRA, which is a retirement account. You can invest up to $5,000 a year in that account.

Those accounts are retirement-focused, and it’s never too early to start thinking about retirement—because if you can start now, you’ll be a multi-millionaire by the time you retire!

Now, if you just want to invest outside of retirement accounts, look for a good growth stock mutual fund with a long track record of performing well. Remember, only invest if you can leave that money alone for five years or longer.

So if you know you’ll want to buy a house in 10 years, then a growth stock mutual fund is a good investment to consider. You can put your money in there and let it build over time.

Make sure you find someone who has the heart of a teacher to help you invest, not someone who will just put your money into an account. Make sure you know all the details about the investments before you place your money in them!

Rachel Cruze Growing up as Dave Ramsey's kid, Rachel Cruze learned the basic principles of money at an early age. She travels across the country teaching those same principles, in a personal and passionate message of money and hope, to teens and young adults. To find out more about Rachel, visit www.daveramsey.com/speakers or follow her on Twitter at @RachelCruze.