Learn the basics

If you're new to investing and the world of stocks, you may be confused at how everything works in this strange new place. What are stocks and mutual funds? How about dividends and coupons? Whether you ultimately choose a professional to manage your portfolio or decide to make all decisions for yourself, knowing some basics will help you traverse this world.

Mutual funds or stocks?

Mutual funds are collections of stocks, bonds, and other investment securities that investors pool their money to buy. As mutual funds can span many sectors and companies, this diversification helps lessen the impact of financial loss by absorbing some of impact. Individual stocks can also be bought, essentially buying you a small ownership in that company. The risk is higher than with mutual funds but so is the possible yield you could earn. Diversification can also be harder to achieve when buying individual stocks.

Shop around

To buy individual stocks, you must open an account with a brokerage. Discount brokers' fees or commissions are more affordable than those of traditional full-service brokerages. You won't get the individual attention and advice you'd get with a full-service brokerage but neither are you getting the high price tag that comes along with it.

Contribute monthly

Set up automatic contributions from your bank's checking or savings accounts to maximize the growth of your money. The longer it can grow, the more of it you are likely to have in the future. Not a bad tradeoff, is it? Another plus--you can't spend money ear-marked for contributions if it's deducted automatically.

Track your investment portfolio with OneBudget

OneBudget shows your investment portfolio right along with all your other financial accounts so you can get the total picture when it comes to your finances. Having everything in one convenient place makes keeping track of all your money matters easy and simple.