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Investing Basics

Investing for Beginners: Start Building Wealth with Sound Mind Investing's Proven Approach

Are you ready to learn how to invest with confidence and start building wealth? For over 30 years, Sound Mind Investing (SMI) has empowered individuals to become knowledgeable, confident, and successful investors. Whether you're new to investing or simply seeking a trusted, step-by-step approach, you’ve come to the right place!

Think of this as your "Investing 101" guide, designed specifically for beginners who want to understand the essentials of investing in a straightforward, approachable way. When you're ready to begin, our proven investment process and expert guidance will be here to support you every step of the way.

Before diving into the world of investing, it’s crucial to understand these nine essential investment principles that will set you up for success.

1. You Need the Stock Market

Who needs the stock market? You do! That is, if you want to retire some day. Or if you have a future dream/goal/plan that requires more money than you have now.

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2. Time Is Money

One of the most important investing concepts is that of “compounding returns.” And a crucial aspect of compounding is time. In this case, time really is money.

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3. The Ride Can Get Rough

Although the stock market’s long-term trend is upward, its path is neither smooth nor straight. Instead, that path is marked by twists and turns, with scary downturns thrown in for good measure!

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4. You Have Some Control

To invest in the stock market, you must accept risk. But you also need to be able to sleep at night! We’ll show you how to discover the level of portfolio risk that’s appropriate for you.

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5. The Future Is Uncertain

You don’t know the future. Neither do we (and that’s okay!). Successful investing doesn’t require the ability to predict the market. It requires patience.

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6. Objectivity Beats Subjectivity

SMI’s strategies aren’t based on “gut feel” or emotional criteria. They are based on objective, rules-based systems.

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7. You Can Beat the Market

We don’t believe in market timing, but we do believe in outperforming the market over time.

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8. Make Sure You’re Ready

Before you put money in the market, be sure your overall finances are in order and your day-to-day cash flow is running smoothly.

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9. Start Now

If you have a savings reserve and are out of debt (other than a reasonable mortgage), you’re ready to invest. But what if the market is at an all-time high or in a downturn? Is this really the best time to begin? Yes!

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