Investing that $50 seems easier said than done, right? Where do you even start? 
Ramit covers that for us with his Ladder of Personal Finance. Investing money for beginners might seem daunting, but knowing where to start is a great first step to getting over investment jitters. 
Five basic steps allow investors to start and build on their investment portfolios. 
Rung 1: 401(k)Wealth is about finding low-cost investments and if they happen to have other advantages too, all the better. A 401(k) is a great way to boost your investments. 
Rung 2: Debt Have you ever seen that meme that reads, “Cleaning the house while your children are home is like brushing your teeth while eating an Oreo.” Those looking to invest and still have debt might find investing the same. The meme would read, “Investing while you have debt is like brushing your teeth while eating an Oreo”. Sure, you can do it, but it’s always going to feel like you’re trudging mud. 
Why? Because the interest you’re paying on the debt is most likely far more than the returns you’re getting on your investments. Ramit has a system for paying debt off faster, so you have more money to invest. 
Also, credit cards can be a great boost when you’re using the benefits but can be a tremendous burden if you’re only making minimum payments. When you use your credit card, be sure to square off the balance every month to make sure that you are using your credit and it’s not using you. 
Rung 3: Roth IRA Contributing to a Roth or traditional IRA is a great way to pay your future self. A Roth IRA means that the contributions are done after taxes, so when you make withdrawals after the age of 59 ½, the withdrawals are tax-free. A traditional IRA has the tax-deferred until a later stage, so you’re taxed at withdrawal. Stick to your maximum limits to avoid penalties. 
Rung 4: Max out your 401(k)If you haven’t already done this, now is the time to max out your contributions to the 401(k). Remember, there are tax benefits. 
Rung 5: Non-retirement investing Some of you will breathe a sigh of relief. Yes! We’re going to talk about other investments and yes, we want you to learn about investing in stocks for beginners. We want you to look into exchange-traded funds, mutual funds, and index funds and put together a portfolio you’re comfortable with. But just make sure all the other steps are out of the way in order for you to make the most of your personal finance journey.
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