​

Learn, plan, and grow! Check out​ our 30+ free courses, 40+ free worksheets, and our 1-on-1 coaching offerings!​

Did you get this email forwarded to you? Join thousands of women​ in the CGF community, follow us on ​Instagram​, and watch on ​YouTube!​​

View this and previous newsletters anytime: Online newsletters.​

​

​​​​​

Hello Reader,

So you want to grow your money in 2026, but you’re not sure where to start.

You’ve probably heard (from us and others) that investing is the way to go. Still, investing can feel confusing, overwhelming, and even a little scary.

Growing your money doesn’t have to be complicated, and you don’t need a lot to get started. We’re here to demystify investing so you can begin, even with as little as $20!

Step 1: Understand what investing is and whether you're ready

You might be reluctant to invest because you think it's all about throwing a lot of money at the stock market, then keeping your eyes glued to the stats to see if you win big or lose a lot.

But investing doesn't have to be that dramatic.

When you invest your money, you're putting it into something, like stocks, bonds, or savings accounts, to grow it over time. These investments can increase in value or earn money for you, so what you put in today becomes worth more down the line.

- Some common investment terms

With a better understanding of investing, it's important to know a few terms.

Compound interest: Imagine a small snowball rolling down a snowy hill. As it rolls, it automatically picks up more snow and gets bigger. Then that bigger snowball picks up even more snow, getting bigger faster. You're not adding snow yourself; it's just growing on its own as it rolls.

That's what happens with your money with compound interest. The more money you invest over time, the more your initial investment grows on itself.

Let's look at that with simple numbers.

For example, let's say you put $1,000 into an account that has a growth rate of 10% per year and you completely left the account alone:

• Year 1: You earn 10% on $1,000 = $100 in growth. Total: $1,100
  ​
• Year 2: You earn 10% on $1,100 = $110 in growth. Total: $1,210
  ​
• Year 10: Your account has grown to ~$2,594. And all you did was invest $1,000!

Each year, you're earning 10% on ALL the money that's already there, not just your original $1,000.

Long-term growth: This refers to your money growing over time.

Risk Tolerance: This is about how comfortable you are, financially and emotionally, with your investments going up and down. You may have a high risk tolerance if you have a stable income and can handle the possibility of losing some money to ultimately earn more in the long run. You might have a low risk tolerance if you prefer a slow and steady growth path for your money.

- Are you ready to invest?

Before you jump in, it’s important to make sure you’re financially ready.

Understanding investing is the first step, along with understanding if you're ready to invest. Take a look at your financial situation. Does your salary cover your needs and wants every month? Are you paying off high-interest debt? Do you have an emergency fund?

Having financial stability before you invest will help you stay consistent, which is a big component of investing. Consider how much money you can practically invest. Remember that small amounts, even $50, can make a difference.

Step 2: Start where you are

There are a few ways to invest as a beginner. The first way we are going to go over is investing for retirement. If you have a steady salary or an employer with a retirement plan, this is the easiest place to start.

Let's go over your options for investing in retirement and other simple entry points for investing.

- Employee-sponsored retirement plans

Investing for retirement through your employer usually looks like opening an account such as a 401k, 403b, or 457b.​

This involves putting your money into an account and allowing your money to grow through a mixture of stocks and bonds. Typically, your employer will take out a set amount you've designated, before taxes, and put it into an investment account.

By investing in a pretax retirement account like one of the above-mentioned, you reduce your taxable income. You only pay taxes when you start to make withdrawals.

​Some employers have a matching program where they will match the amount of money you invest. So if you invest 5%, they'll invest 5% as well. Easy money! (Just make sure you are aware of any vesting schedule).

- Individual retirement accounts

You can also invest in retirement through opening an individual retirement account (IRA). There are two types of accounts: a traditional IRA and a Roth IRA.

A traditional IRA means you are contributing your pre-tax money. Like the employer-sponsored plan, taxes will be paid upon withdrawal at retirement age. This is a good option to receive tax benefits now, especially if you see yourself staying in or moving to a lower tax bracket when you retire.

A Roth IRA is an individual account that invests your after-tax income. This way, your money grows tax-free, and you don't have to pay taxes on it when you withdraw at retirement age. A Roth IRA is beneficial if you see yourself moving to a higher tax bracket when you retire.

Have you pre-ordered your copy of Clever Girl Millionaire?

Step 3: Explore simple ways to invest beyond retirement

Besides investing in retirement, other types of investments that don't require a large upfront cost include index funds. Let's go over how you can start investing in these.

- Investing in Index Funds (Including ETFs)

An index fund is a type of investment that buys all the stocks in a specific list (called an index). For example, an S&P 500 index fund buys shares in all 500 of the biggest U.S. companies at once.

You can also buy a total market index fund, which spreads your money across the entire stock market, thousands of companies.

​ETFs (exchange-traded funds) work the same way, they track indexes just like traditional index funds.

The main difference is that ETFs trade like stocks throughout the day, while traditional index funds are bought directly from the fund company. For beginners, this distinction doesn't matter much, both are low-cost, diversified options.

Setting up your index fund or ETF is something you can do with very little outside help. First, you need to open a brokerage account. Fidelity, Vanguard, and Charles Schwab are popular options because they usually don't require any upfront costs or account minimums.

Next, decide on how much you want to invest. You can start with as little as $5, $15, or $30, whatever you're comfortable with.

After your initial investment, you can make monthly contributions so that your investment grows more over time.

Remember, small ups and downs are normal. Investing is a long-term strategy, so don’t panic over short-term changes.

---

Make your money grow this year!

You don’t need to rush. If your goal is to start investing this year, break it into mini goals.

Spend some time reviewing your finances. Next, talk with your employer or bank about retirement options. Then, choose a date to make your first ETF investment.

What matters most is choosing an approach that works for you. Investing may feel intimidating at first, but it’s one of the most powerful ways to build wealth while you live your life.

---

Keep learning. Investing will feel less scary the more you know. You can start by taking our free courses on investing (we have 7!).​

And to really dive into the world of investing, get your copy of the Clever Girl Finance book, Grow Your Money. ​

We're rooting for you!

📺 On YouTube

Tune in to this YouTube video:

​

Be sure to check out the Clever Girl Finance YouTube channel for more great videos!

​

📖 On the blog

• ​Index fund investing: How it works and best funds​​
• ​The 3 fund portfolio: Simple investing that works​​
• ​How to start: Passive real estate investing​​

​
🎧 On the podcast

• ​College Without The Debt - How To Win Scholarships And Build Wealth With Melissa Rowe​

🔊 Book A One-on-One Coaching Session!

​Clever Girl Finance coaching sessions are designed to give you the personalized support, strategy, and encouragement you need to thrive financially.

Whether you're just getting started, working on building wealth, or facing a major financial decision, our 1-on-1 coaching will meet you where you are—with zero judgment and 100% support.

Let’s create a plan that works for your life. Book your coaching session today and start moving forward with confidence!

By the way, if you know anyone that would benefit from ​our completely free courses and worksheets​, please share! You can simply forward this email.

PLUS when you sign up for a free course, you can schedule a completely free call with one of our amazing Clever Girl Finance mentors.

WE ARE IN YOUR CORNER!

📲 Follow us on social media

• Checked out our IG Reels? ​You are going to love them!​​
• Be sure to follow ​@clevergirlfinance ​on Instagram if you don't already!
• Be sure to also ​subscribe to our YouTube channel!​​​

Talk soon ❤️
Team CGF
(Kiersten & Bola)

Some images and links in this newsletter are affiliate or sponsored links from companies we trust, which means if you make a purchase or sign up, Clever Girl Finance may get something in return. This helps us grow!

Are you a business? Learn more about sponsoring this newsletter!​