Investing can be a daunting topic for beginners, but it doesn’t have to be. Building your wealth through investments is a great way to secure your financial future and there are plenty of simple strategies to get started. Here are five easy ways to begin your investment journey and grow your wealth over time.

First, let’s talk about stocks. Buying stocks means you’re purchasing a small piece, or share, of a company. You become a part-owner and can profit when the company does well and the value of your shares increases. A great way to start investing in stocks is through a practice known as dollar-cost averaging. This means investing a fixed amount of money regularly, say $100 every month, regardless of the share price. Over time, you’ll accumulate shares and build a diverse portfolio.

Another simple way to invest is through your employer. Many companies offer retirement plans such as 401(k)s, which allow you to contribute a portion of your paycheck pre-tax. This lowers your taxable income and the tax you pay on investment gains. Some employers will even match your contributions up to a certain amount, giving you free money to invest!

Robo-advisors are another fantastic option for beginners. These are digital platforms that use algorithms to build and manage your investment portfolio. You answer a few questions about your financial goals and risk tolerance, and the robo-advisor does the rest. They’re a low-cost, easy-to-use option that requires minimal effort.

Exchange-traded funds, or ETFs, are a great way to invest in a diverse range of assets. An ETF is a basket of securities that trade on an exchange like a stock, and they can contain all sorts of investments, from stocks and bonds to commodities and currencies. They offer diversification and low costs, making them a good option for beginners.

Finally, you can consider investing in mutual funds. Mutual funds are professionally managed investment funds that pool money from many investors to purchase stocks, bonds, and other assets. They’re simple because you don’t need to actively pick and choose investments, and mutual funds offer diversification and the potential for solid returns over time.

Now that we’ve covered a few strategies, let’s dive into some more detail to help you get the most out of these approaches.

Stocks offer an exciting opportunity to own a piece of a company you believe in. When you buy stock, you’re generally doing so through a stockbroker or using an online brokerage account. It’s a good idea to open a brokerage account with a reputable firm, and many offer resources to help beginner investors. Dollar-cost averaging, as mentioned earlier, is a fantastic strategy to begin investing in stocks without the pressure of timing the market. By investing regularly, you’ll end up buying more shares when prices are low and fewer when prices are high, averaging out your overall cost.

Robo-advisors are a modern solution for those who want a hands-off approach to investing. They provide a simple, automated way to manage your investments. After providing some initial information, the robo-advisor will create a personalized portfolio for you using low-cost exchange-traded funds (ETFs). It then automatically reinvests dividends and periodically rebalances your portfolio to maintain your desired allocation. It’s an easy, low-maintenance way to invest, and you can often get started with a small initial deposit.

ETFs are a versatile investment option. Because they trade on exchanges, they’re easy to buy and sell throughout the trading day, just like stocks. There are ETFs for almost every type of investment strategy and asset class, offering exposure to various sectors, industries, and regions. For example, you can invest in an S&P 500 ETF, which tracks the performance of the 500 largest US companies, or an international bond ETF for exposure to global fixed-income markets.

Mutual funds are a popular choice for new investors due to their professional management and diversification benefits. When you buy shares of a mutual fund, you’re pooling your money with other investors, and a fund manager invests that money on your behalf. They handle the research, portfolio construction, and trading, taking the burden of investment decisions off your shoulders. Many mutual funds have a relatively low minimum investment, making them accessible to those just starting.

These five strategies offer a solid foundation for beginners to start investing and growing their wealth. Remember, investing is a long-term journey, and it’s important to do your research, understand your risk tolerance, and seek professional advice when needed. With a bit of knowledge and a plan in place, you can begin building your financial future through these simple investment strategies. Happy investing!