The second step to becoming a millionaire DIY investor is to cultivate financial self-education. Your values will inform you of what is important to you, which I hope you’ll internalize is the importance of saving and investing. On top of that, your education will help you make well-informed decisions on how to use your hard-earned money wisely. Being a DIY investor is also about taking ownership of your financial education. In this week’s simple exercise, I’ll show you how to take those first steps to cultivate your financial self-education.
“Cultivate financial self-education” exercise:
- Step 1. Take 10 minutes and write down a learning plan that includes,
- Learn the foundation of investing, such as stocks, bonds, mutual funds, and exchange traded funds (ETF’s) and compounding
- Learn more about investment accounts (401(k), IRA, brokerage account)
- Step 2. Implement each item on your learning plan and set a due date for yourself
- To learn the basics of investing and compounding, read Investing 101: A Tutorial for Beginner Investors on Investopedia.com
- To learn about investment accounts, check out Vanguard’s article on choosing investment accounts at Vanguard.com
- Step 3. Take advantage of the free educational material that your 401(k) provider may provide. Set aside dedicated time on your schedule to get informed.
As always, on top of this simple exercise, check out these 3 digital trends that will help lift you up with the knowledge you need to know to become financially astute. Start your educational journey today.
Stay tuned! To get this blog started, I’ll be taking inspiration from my upcoming book, From Millennial to Millionaire: DIY 401(k) – 5 Do-It-Yourself Steps for the Digital Generation to Design and Manage their 401(k), to write blog posts. My new book should be available in eBook and paperback on Amazon by summer 2017.