Things You'll Need:
- Time
- Determination
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Step 1
First, make sure to at least max out your 401K. That is, make sure you save the maximum matching amount from your employer. The matching amount is free money and you should take advantage of it. However, you should save as much as you can into this 401K account including up to the typically 15% of your salary maximum.
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Step 2
Unless you are an expert in stocks or have a lot of free time, you should just invest in an index fund that tracks the S&P 500. This is the safe way to go as the 10-year average is roughly 8-10% return. If you have the time and can do better than this, great. But life is too short and there are many other ways you can spend time as well.
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Step 3
Especially for those new to the job market, the lure of day-trading can be intoxicating. DO NOT DO THIS. While there are a few success stories, the vast majority are failures, often tragically with serious financial losses. The plain truth about day-trading is that it is gambling, but with bigger stakes than the $1 slot machines. Take my advice, put your money an S&P 500 index and don't think about it...enjoy life.
