how do you invest in the stock market?

So now that you're earning at least 3.75% on your savings account (see prior post), you're probably wondering what is the next step? Whenever you start a new job, you need to immediately enroll in the 401(k) (or 403(b) if working for the government) plan offered by your employer. Why is this so important? Employers almost always match a certain percentage of the amount you contribute. Often, they match $0.50 of every $1 you invest up to 6% of your income. So, if you invest 6%, you automatically have 9% put into your account. That's a guaranteed return of 50%. Nowhere else in the world will you get this kind of return on your money. Do this for 15 or 20 years when you're in your early to mid-20s and you will be a millionaire by the time you retire. By the way, employers match your 401(k) investments because they no longer offer pensions or other monthly payments like they used to a generation or two ago.

However, if you are unfortunate and your company doesn't match your 401(k), you should invest in a Roth IRA. Stay tuned for my next post where I will translate this crazy language.

Here's to monetary success!
B-Squared