Making Money Moves

4 Important Money Steps To Ensure You're Ready To Invest

You don't need to be rich to start investing. We're breaking down our 4 important money steps to help you rethink that myth, get your finances in order and get to investing & growing your wealth.

Do I Have To Be Rich To Invest? Do I Have To Be Rich To Invest in Stocks?!?

There’s a huge misconception, especially among women, that you must be rich to start investing.

We want you to know that this is simply NOT TRUE. You don’t need to be rich to start investing.

There may be legitimate reasons holding you back from taking that first step to investing, like not knowing “enough,” feeling anxious or a little overwhelmed, or the industry creating barriers with jargon, but even those of us with modest incomes can still invest.

Before you start, there are four key money steps we believe are important to consider first.


Before doing anything else, like buying that new houseplant you’ve been eyeing, put enough money aside to build up your emergency fund. This amount will be different for everyone. Reena, for example, has enough money to live comfortably for the next 8 months without earning income. Becky has 3 months. These amounts work well for each of us and our needs.

Somewhere between 3 - 9 months means that if you needed or wanted time off you could take it without too much stress. Prioritize getting this emergency fund to a place you're happy with and keep it there.


It’s important to balance risk by keeping some money in a high interest savings account to get a better return on the money you put in there.

This money could be for bigger purchases, such as a car or that dream vacation in Tahiti. It can help to pick a $ goal and aim to keep your savings account at that amount. So, if you spend 12 months saving $5,000 and then spend $500 on a holiday, make sure you spend the next few months after that prioritizing your paycheck so the account goes back up to the $5k mark.


This is your employer retirement fund or 401K in the US. It seems a little rough putting more of your monthly salary away when you think you need that extra bit of $$. But trust us; putting this away now will mean you reap the benefits when it’s time to take a step back from work. Aim to put 5 - 10% of your monthly income in or at the very least the amount your employer will match because - boom, that’s free money!

They’re already not paying you enough so you may as well make them pay for your retirement. Talk to someone at your company to understand what’s on offer and make the right choice for you. And check your retirement account(s) when you move jobs so you can either roll it over into your new provider or into an IRA.  


Once steps 1-3 are taken care of, you can focus on putting a % of your leftover income into other investments. Determine how much of your remaining money you want to start investing. If you want to build wealth, you cannot leave it all in savings (or to your partner or spouse). We aim to invest 5-10% of our leftover income.

Investing does come with risk but so does leaving everything in savings. What’s important is that you educate yourself on the components of investing, determine how you want to invest, diversify, and do a bit of market research (you don’t have to do a ton of research; a little goes a LONG way).

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