Let me tell you about a $4,000 mistake I made that could have been worth over $30,000 today.
When I left my last job I had a Roth IRA sitting there. Four thousand dollars that my employer had helped me build up over the years. And what did I do with it? I cashed it out. Just like that. I needed money and it was sitting there so I took it.
What I didn’t realize at the time was that I wasn’t just withdrawing $4,000. Instead, I was stealing from my future self. At a 7% average annual return that $4,000 could have grown to over $30,000 in 30 years — without me adding a single extra dollar. Gone. Just like that.
I’m sharing that story because I know I’m not alone. Millions of millennials have made the exact same mistake — cashing out retirement accounts when switching jobs, not investing because it feels complicated, or simply waiting too long to start.
This is the guide I wish someone had given me back then. No jargon. No complicated formulas. Just a simple honest step-by-step breakdown of how to start investing with as little as $50 — even if you’re working 12-hour shifts and barely have time to breathe.
Why Most Millennials Aren’t Investing — And Why That Has to Change
Here’s the truth nobody tells you: the stock market isn’t just for rich people in suits. It never was. However, somewhere along the way millennials got the message that investing was complicated, risky, or only for people with thousands of dollars sitting around.
The result? A generation of hard working people watching their money sit in savings accounts earning next to nothing while inflation quietly eats it alive.
Think about this — if you have $10,000 sitting in a savings account earning 0.5% interest you’re making $50 a year. Meanwhile inflation runs at 3-4% per year meaning your money is actually losing purchasing power every single day it sits there.
Investing isn’t gambling. It’s not complicated. And you absolutely don’t need thousands of dollars to start. You just need to understand the basics — which is exactly what we’re going to cover right now.
What Is a Stock — In Plain English
A stock is simply a tiny piece of ownership in a company. When you buy one share of Apple you literally own a tiny slice of Apple. If Apple grows and becomes more valuable your slice becomes worth more too.
That’s it. That’s all a stock is.
Now multiply that across hundreds of companies and you start to understand how everyday people build real wealth through investing — not by getting lucky but by owning small pieces of the biggest companies in the world and letting those companies grow over time.
Start With ETFs — Not Individual Stocks
Here’s the mistake most beginners make: they jump straight into buying individual stocks. They buy Tesla because Elon is all over the news. A buddy at work recommends something and they jump on it. And then the stock drops and they panic sell at a loss.
Don’t do that. Start with ETFs instead.
An ETF — Exchange Traded Fund — is basically a basket of many stocks bundled into one investment. Instead of betting everything on one company you’re spreading your money across hundreds of them at once. One good ETF like VOO or VTI gives you exposure to 500 of the biggest companies in America simultaneously.
| ETF | What It Tracks | Why Beginners Love It |
|---|---|---|
| VOO | S&P 500 — Top 500 US companies | Diversified, low cost, historically strong |
| VTI | Total US Stock Market | Even broader diversification |
| QQQ | Top 100 NASDAQ companies | Tech heavy, higher growth potential |
| SCHD | Dividend paying US stocks | Great for passive income over time |
The Best Apps to Start Investing Today
Gone are the days when you needed a fancy broker and thousands of dollars to invest. Today you can start investing from your phone in about 10 minutes. Here are the platforms I personally use:
Robinhood
Best for beginners. Commission free trades, fractional shares, and a clean simple interface. You can buy as little as $1 worth of any stock.
Coinbase
Best for crypto. If you want exposure to Bitcoin and other cryptocurrencies alongside traditional stocks Coinbase is the most beginner friendly option.
Fidelity
Best overall for long term investing. Zero fees, great research tools, and excellent Roth IRA options. Perfect if you want to fix the Roth IRA mistake I made.
Get Started With Robinhood
Robinhood makes investing simple for beginners. Commission free trades, fractional shares starting at $1, and a free stock just for signing up. It’s the platform I personally started with and still use today.
How to Open Your First Investment Account — Step by Step
Opening an investment account takes about 10 minutes. Here’s exactly what to do:
1 Choose your platform — For pure beginners start with Robinhood. For long term retirement investing Fidelity is a solid choice.
2 Download the app or go to their website — Both have mobile apps and desktop versions.
3 Create your account — You’ll need your Social Security number, a government ID, and your bank account information.
4 Verify your identity — This usually takes 1-3 business days. The platform needs to confirm who you are before you can trade.
5 Transfer your starting amount — Start with whatever you can afford. Even $50 is enough to begin. Link your bank account and transfer the funds.
6 Make your first investment — Search for VOO or VTI. Click buy. Enter your dollar amount. Confirm. You are now officially an investor. 🎉
Dollar Cost Averaging — The Strategy That Changes Everything
Here’s the single most powerful investing strategy for beginners and it’s completely free to use. It’s called dollar cost averaging and it works like this:
Instead of trying to time the market — buying when prices are low and selling when they’re high which even experts can’t do consistently — you simply invest a fixed amount on a regular schedule no matter what the market is doing.
$50 every paycheck. $100 every month. Whatever amount works for your budget. You set it up once and it runs automatically. Some months you buy when prices are high. Other months you buy when prices are low. Over time it averages out and you end up with more shares than if you tried to time everything perfectly.
“Time in the market beats timing the market. Every single time.”
Open a Roth IRA — Don’t Make My Mistake
If there’s one thing I could go back and tell my younger self it’s this: open a Roth IRA and never touch it.
A Roth IRA is a retirement account where you invest after-tax dollars and your money grows completely tax free. When you retire and start taking that money out — zero taxes. None. You already paid taxes on it going in so the government can’t touch the growth.
That $4,000 I cashed out? If I had left it alone and just kept adding to it consistently the tax-free compound growth over 30-40 years would have been life-changing money. As a result of that mistake I now tell everyone — roll it over, never cash out.
| Account Type | Tax Benefit | Best For |
|---|---|---|
| Roth IRA | Tax-free growth and withdrawals | Younger investors expecting higher future income |
| Traditional IRA | Tax deductible contributions now | Those wanting tax break today |
| 401(k) | Pre-tax contributions + employer match | Always max out employer match first |
Common Beginner Mistakes to Avoid
I’ve made plenty of these so learn from my experience:
Mistake 1 — Not Starting Early Enough
This is my biggest regret. Every year you wait is money left on the table. Compound interest is most powerful over long periods of time. Therefore, start now even if it’s just $25 or $50.
Mistake 2 — Cashing Out Retirement Accounts
When you leave a job don’t cash out your 401k or IRA. Roll it over into a new account instead. Cashing out means paying taxes AND a 10% early withdrawal penalty — plus you lose all that future compound growth.
Mistake 3 — Not Investing Consistently
Investing $500 once and never touching it again is better than nothing. However, investing $50 every single month for 10 years is dramatically more powerful. Consistency beats one-time big moves every time.
Three More Mistakes That Will Cost You
Mistake 4 — Panic Selling When the Market Drops
The market will drop. It always does. Nevertheless, the investors who win are the ones who stay calm and keep investing during downturns. Drops are temporary. Staying invested is how you win.
Mistake 5 — Chasing Hot Stocks
By the time everyone is talking about a stock on social media the easy gains are usually already gone. Instead, stick to boring diversified ETFs especially as a beginner. Boring is profitable.
How Much Should You Invest as a Beginner?
The honest answer is — whatever you can afford consistently. Here’s a simple framework:
| Monthly Budget for Investing | Value After 20 Years (7% return) | Value After 30 Years (7% return) |
|---|---|---|
| $50/month | $26,000 | $60,000 |
| $100/month | $52,000 | $121,000 |
| $200/month | $104,000 | $243,000 |
| $500/month | $260,000 | $607,000 |
See what I mean? Even $50 a month turns into real money over time. The key is starting — even small — and staying consistent.
Frequently Asked Questions
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The Bottom Line — Start Today
Working 12-hour shifts in oil and gas to support a family doesn’t leave much room for error with money. Trust me — the feeling of never having enough left over at the end of the month to invest is something I know firsthand. Making financial mistakes like cashing out that Roth IRA and wondering if you’ve already missed your chance? That feeling is real.
But here’s the truth — it’s not too late. The longer you wait though, the harder it gets.
Start with $50. Open a Robinhood account. Buy one share of VOO. Set up a $50 automatic monthly investment. That’s it. That’s the whole plan to start.
The version of you 30 years from now will thank the version of you that started today.
Let’s make real money moves. 💪
— Jon, Hustle Moves Daily
Have questions about getting started with investing? Drop them in the comments below — I answer every single one. And if this post helped you please share it with someone who needs to hear it.
Also, if you’re dealing with credit card debt while trying to build wealth, don’t miss this: How I Paid Off $20,000 in Credit Card Debt in 3 Months.