4 Ways To Start Investing If You Can’t Afford Professional Help

If you want a comfortable retirement and lasting financial security, it’s important to know the basics of smart investing. Savvy, long-term investments enable your money to grow as well as hedge against inevitable inflation.

When you’re new to investing, it can all feel rather daunting. There’s so much to learn and unpack and if you’re not calculated and appropriately confident in your investments, you could put your hard-earned money at risk.

Ideally, a financial planner or advisor will help you get up and running, but not everyone can cover the cost of professional help, which is an investment in itself. How do you get started investing if you can’t afford to hire an expert to help you ?

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Familiarize Yourself With Free Resources

As you dip your toes into investing, learn about the free educational resources that are available to you.

“Once you open a brokerage account to manage your investments, don’t be afraid to ask for help,” said Erika Kullberg, personal finance expert, attorney and founder of Erika.com .

“Every brokerage has different support and education resources. For example, the brokerage may offer a free initial meeting with an investment advisor or access to a robo-advisor for free on an ongoing basis. The brokerage may also offer webinars, workshops or digital education resources that can help you learn how to navigate your investments.”

There are also plenty of online tools and platforms that can help educate you.

“There’s an abundance of free educational content online through reputable platforms like Khan Academy, Coursera or even YouTube,” said Scott Dylan, founder of NexaTech Ventures . “Understanding basic financial concepts such as compound interest, diversification and risk tolerance will help you make informed decisions.”

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Start Small With Micro-Investing Platforms

You don’t need to go all in with a series of major investments right out of the gate. It’s smart to start small, particularly if you’re new to investing.

“Micro-investing platforms like Acorns (or Moneybox in the U.K.) allow users to invest small amounts of money into diversified portfolios,” Dylan said. “This is a great way to dip your toes into the investment world without needing thousands upfront.”

Invest In a Low-Fee, Diversified Equity Index Fund

If you’re new to the investing world and want a relatively low-risk option that gives you exposure to a wide range of stocks, you should consider investing in a low-fee, diversified equity index fund. This is what Robert R. Johnson, PhD, CFA, CAIA, professor of finance at Heider College of Business, Creighton University , recommended.

“An index mutual fund is simply one that tracks a broad index such as the S&P 500 or the Dow Jones Industrial Average,” Johnson said. “These index funds are widely available and have very low expense ratios. The three largest index funds tracking the S&P 500 index are the SPDR S&P 500 ETF Trust (SPY), the iShares Core S&P 500 ETF (IVV) and the Vanguard S&P 500 ETF (VOO).”

Implement Dollar-Cost Averaging

If you’re new to investing, you should learn about — and possibly implement — dollar-cost averaging, an investment technique that entails investing a fixed amount of money into an asset (such as a fund or stock) on a regular basis, regardless of price.

“For the vast majority of investors, the KISS mantra — ‘Keep It Simple, Stupid’ — should guide their investment philosophy,” Johnson said. “The idea behind index investing is: ‘If you can’t beat ’em, join ’em.’ Investors simply can’t afford to make oversized bets on individual securities. And, often that is what happens to beginning investors who buy the stock of the company they work for or the stock of a product they like. When they experience failure, they withdraw from the equity markets.”

Remember that this all takes some time and practice. But if you put in the work, practice vigilance and prepare to be an investor for the long haul, you’ll be up and running in no time.

This article originally appeared on GOBankingRates.com : 4 Ways To Start Investing If You Can’t Afford Professional Help