You won’t make any money by just leaving your hard-earned dollars in a checking account. Investing your money is the best way to make it grow. But do you know how to get started with basic investing strategies?

Read on to discover eight simple investment tips for beginners!

1. Get Rid of Existing Debt

When you’re trying to improve your financial health, start that process by paying off existing debt. Especially if you have debt with high interest rates, this action is critical. You could undo any new investments you make if you’re saddled with significant debts.

This doesn’t mean you have to pay off a mortgage before exploring the stock market. But credit card debt, personal loans, and even student loans can cut into your income. Check the interest rates on these debts.

Some credit cards charge interest rates of 15% or higher if you have outstanding payments. Make an effort to pay your balance in full each time you get a statement. And chip away at any debt.

Regulate spending on entertainment and activities, like eating out. If you can control these spending habits, you’ll be able to pay down debts more quickly. And you’ll have more money to make smart investments!

2. Allocate Money for Investments

You don’t want to invest all of your paycheck in stock options or CDs. Instead, you’ll need to determine how much you can reasonably set aside for investments. This means taking a careful look at your budget. 

Ideally, you’ll want to invest at least 10% of your income in options like mutual funds, index funds, or IRAs. So, if you’re bringing home $3,000 per month, aim to siphon off at least $300 to put toward investments.

If you can go even higher with your investment percentage, that’s better for your long-term financial health. Try to reach 20% if you can. But if those percentages are too lofty, start with whatever you can comfortably invest!