What Is Investing? A Beginner’s Guide to Building Wealth Over Time

If you’ve ever heard someone say they’re “investing in the stock market” or “making their money work for them,” you might wonder:
What exactly does that mean? And how do I get started?

Investing can feel intimidating at first—but at its core, it’s simply about growing your money over time. The earlier you start, the more time your money has to grow, and the more confident you’ll feel about your financial future.

Let’s break it down.

What Is Investing, Really?

Investing is the process of putting your money into assets—like stocks, bonds, real estate, or mutual funds—with the goal of increasing its value over time.

Instead of just saving money in a bank account (where growth is limited), investing gives your dollars the opportunity to grow faster through compound returns.

That means:

• Your money earns returns (growth)

• Those returns earn returns (compounding)

• Over years or decades, that growth becomes exponential

Why Should You Start Investing Early?

Time is your greatest asset when it comes to investing. Even if you start with just $50/month, the long-term impact is massive thanks to compound growth.

Here’s a quick example:

Starting early gives your money more years to grow. Even small amounts add up when you’re consistent.

Common Investment Types to Know

You don’t need to be an expert to begin, but understanding the basics helps you feel more in control.

Here are a few types of investments you might start with:

• Stocks: Owning a small piece of a company. Higher risk, higher reward.

• Bonds: Lending your money to a company or government in exchange for interest. Lower risk, lower reward.

• Mutual Funds & ETFs: Bundles of stocks or bonds that help you diversify.

• Index Funds: A type of mutual fund that tracks the overall market (like the S&P 500) with low fees.

• Roth IRA/401(k): Tax-advantaged accounts for retirement investing.

If that list feels overwhelming, don’t worry. You don’t need to know everything—just enough to get started wisely.

Is Investing Risky?

All investments come with some level of risk—which means the value can go up or down.

But here’s the key:

The longer you stay invested, the less risky it becomes.

Short-term market dips happen, but over time, the market has historically grown. That’s why investing is a long game—not a get-rich-quick scheme.

You can reduce your risk by:

• Starting early (more time = more resilience)

• Diversifying your investments (not putting all your eggs in one basket)

• Staying consistent even when the market gets bumpy

How to Start Investing in 5 Simple Steps

1. Set a goal: Are you investing for retirement? A future home? Financial freedom?

2. Build an emergency fund first: Before investing, make sure you have 3–6 months of expenses saved.

3. Pick the right account: Consider a Roth IRA or a beginner-friendly brokerage account.

4. Choose diversified investments: Index funds or ETFs are great for beginners.

5. Automate it: Set up recurring contributions so investing becomes a habit, not a chore.

Beginner Tips to Keep in Mind

• You don’t need thousands to begin. Many platforms let you start with $5–$50.

• Don’t try to “time the market.” Stay consistent, even during downturns.

• Fees matter. Look for low-cost investments like index funds.

• Learn as you go. You don’t need to know it all on day one.

Final Thought: Start Small, Think Big

You don’t have to be rich to invest—but investing is how many people become financially secure over time.

Even if you’re still in high school or just landed your first job, building the habit now will pay off in ways future-you will thank you for.

Need help getting started?

Let’s talk about what accounts or investment options might make sense for you.
Reach out anytime at bri@apriem.com and we’ll walk through your first step together—no pressure, just support.