Deep down, I think many of us are wondering if we should become a finance bro. The business classes are easier, and the ego is second to none.

Whether or not you decide to become a finance bro, you should and probably have already thought about investing.

But thinking and actually starting are very different, and bridging that gap can be confusing and anxiety inducing.

Investing is for everyone. But it’s not. Let me explain.

In the grand scheme of things, yes, you should probably be investing. But there are times when it might not be right for you. Especially as a student.

So how do you determine whether you should be investing? And how much?

Well I’m glad you asked schnookums. You should…

Investing without the right foundation is like running a marathon without tying your shoes. You might be fine, but you could also acquaint your face with the pavement in a way that was deeply unintended.

Here's the checklist I'd walk through before opening any investment account.

This is obvious but important

If you don't have a regular source of income, investing can be premature.

It is easier to be confident you have the money you’ll need to invest when you are able to allocate budget for it with income, even if it is variable.

If you don’t have income, investing may still work for you, but it’s safer to invest as a percentage or set amount of money that is coming in.

Even if you have income, one unexpected expense can blow up an investing plan.

You should shoot to have at least one month of living expenses saved before you start buying stocks. As you get older, or if you value stability more, you may want 3 or even 6 months+.

This way, if your laptop dies or you need to cover a large expense in a bind, you don't have to liquidate investments to cover it. You’re prepared. Which is better for your stability, and your investments!

Paying off high-interest debt is, mathematically, one of the best investments you can make.

If your credit card is charging you 22%, paying off 100 or $1,000 of that balance is the equivalent of earning a guaranteed 22% return on that same amount. Few investments can reliably beat that return.

If you know of any please tell me. Please.

If you're carrying a credit card balance month-to-month, that's your first investment.

Your goal plays a large role in the investing you should do: the account type, the timeline, even what you buy inside the account.

Retirement? A Roth IRA is probably a good move. You invest after-tax money now (while your tax rate is likely low) and pay zero taxes on the growth when you pull it out in retirement. It's actually ideal to start one when you're young but note: this account is for retirement. If you pull out money before you’re 59.5 years-old, there are penalties!

A big goal in the next 5-10 years? A taxable brokerage account gives you the flexibility to withdraw when you need it, without penalties.

Need the money in the next few years? Consider skipping investing entirely. A high-yield savings account earns you interest while keeping your money accessible. Short-term investing may not provide returns that justify the risk.

This doesn't disqualify you from investing. It just shapes what you invest in.

If a 10% drop in your investments would cause you to panic-sell everything and stuff all your cash under your bed, you probably want a more conservative mix of investments that tend to grow steadily over time.

If you'd see a drop in value as a buying opportunity, you can lean heavier into growth-oriented investments.

Knowing your risk tolerance is strategic because the goal is “time in the market,” over timing the market.

It is best that you are able to invest consistently over time, not selling in a panic. That tends to lead to the most growth of your money.

So investing in a way that doesn’t stress you out is important!

Invest Ready is a quiz that walks you through every one of the five questions above.

It takes about a minute, and at the end it provides you a personalized investment thesis. What you could invest in, why, and how to set it up.

If you're not ready yet, it explains why and gives you a concrete first step. Which high-yield savings accounts are earning the best rates right now, or the math on why paying off that credit card first is worth it.

If you are ready, it gives you a personalized plan of which account to open, which index funds could fit your profile (with plain-English explanations for every ticker symbol), and a compound growth table so you can see what consistent investing looks like over 10, 20, 30, and 40 years.

Also, quick reminder that I am not sponsored by any of the tools I note here. I wish I was! These are just the tools I use.

Determine if you’re ready to invest.

Take the quiz.

Or just evaluate using the steps I showed in the learn section.

What matters is that you start.

;)

Thank you so much for being a part of this newsletter. I am grateful to write to you weekly and I hope this helps you feel more confident with your finances.

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