• Lady

Investing 101

Updated: Apr 6, 2021

Hello Readers,

While it's smart to keep your emergency fund in a high yield savings account, any more is unnecessary because that money tends to do little against inflation. Investing does the trick.


-When to Invest

-Index vs. Individual



-When to Sell

When to Invest

Early and often. The market fluctuates so you want to average the buy-ins. In other words: don't time the market.

While you're waiting for the dropping market to drop just a little lower, it might quickly skyrocket. You're missing out on all the sweet sweet gains as it's now "too expensive" to buy-in. As mentioned in a previous post, make sure you have dry powder.

Index vs. Individual

Beginners tend to start with index funds, a more affordable collection of companies, while intermediates+ are more comfortable with individual stocks or companies. Don't forget to:


This may be the most important rule. Make sure you're in multiple industries (energy, health, entertainment, retail, etc.) because it mitigates risk. Diversification prevents all your money from crashing alongside an individual company or industry.


-Do I care about and believe in the company?

-What is their five-year market history?

-Have they appreciated or depreciated?

-Do they provide dividends?

When to Sell

Don't. Buy and hold long term. Keep buying and holding until you need the money for something like a downpayment on a home or an emergency your savings can't cover. Be strategic and try not to sell your whole portfolio.

*If this seems overwhelming, don't fret. Everyone has their own timeline. It can take months or years to build a strong portfolio and it's okay to invest in tiny bites as you get acquainted.

Do you have investing methods?

Happy savings,


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