Investing and financial planning can seem intimidating to those who have never ventured into the realm of personal finance. However, with the right guidance, anyone can learn how to build a solid financial foundation for the future. In this blog post, we'll cover the basics of investing and financial planning for beginners, including setting financial goals, understanding investment options, creating a budget, and utilizing helpful resources.

Step 1: Set Clear Financial Goals

The first step in successful financial planning is to set clear, realistic financial goals. These goals will guide your investment strategy and help you determine which types of investments are best suited for your needs. Goals can be short-term, such as saving for a vacation, or long-term, like preparing for retirement. When setting goals, make sure they are SMART: Specific, Measurable, Achievable, Relevant, and Time-bound.

Step 2: Understand Different Investment Options

Before diving into investing, it's crucial to understand the various investment options available. Some common types of investments include:

  1. Stocks: Shares of ownership in a company
  2. Bonds: Debt securities issued by corporations or governments
  3. Mutual funds: Pooled investments that hold a diverse mix of stocks, bonds, or other assets
  4. Exchange-traded funds (ETFs): Funds that track an index or sector and trade like stocks
  5. Real estate: Owning property, either directly or through a real estate investment trust (REIT)

Each investment option carries a different level of risk and potential return, so it's important to choose the ones that align with your financial goals and risk tolerance. For a deeper understanding of these options, Investopedia ( offers comprehensive guides and educational resources.

investing for beginnersStep 3: Create a Budget and Pay Down Debt

A budget is an essential tool for managing your finances and allocating funds for investing. It helps you track your income, expenses, and savings, allowing you to identify areas where you can cut back and save more. To create a budget, you can use a simple spreadsheet or a budgeting app like Mint ( or YNAB (  If you have debt, consider a program like Dave Ramsey's The Total Money Makeover.  Credit counseling agencies also offer help with issues ranging from bankruptcy to student loan debt to a review of your overall budget and finances. Some services are free.

Step 4: Create a Basic Financial Plan

Creating a basic financial plan doesn't have to be expensive or complicated. 

The Foundation for Financial Planning offers pro bono financial planning services for people who are financially vulnerable, including wounded veterans, domestic violence survivors and cancer patients. Other organizations that may offer free or discounted financial advice include Advisors Give Back, the U.S. Department of Housing and Urban Development, the Financial Planning Association and the Financial Counseling Association of America. also has several free retirement tools, such as a social security estimator and retirement ballpark estimator.  

Additionally, the AARP Retirement Calculator can provide you with a personalized snapshot of what your financial future might look like. Simply answer a few questions about your household status, salary and retirement savings, such as an IRA or 401(k). You can include information about supplemental retirement income (such as a pension or Social Security), consider how long you intend to work and think about your expected lifestyle as a retiree. The tool will help you determine the amount of money you’ll need to retire when — and how — you want.​

For younger clients interested in debt reduction, budgeting and savings, goal planning, etc. we recommend the following sites: 

Step 5: Open an Investment Account

To start investing, you'll need to open an investment account with a brokerage firm. There are many online brokerages, like Robinhood (, E*TRADE (, and Fidelity (, that cater to beginner investors with low or no account minimums and user-friendly platforms.  

Step 6: Consider a Diversified Portfolio

Diversification is a risk management technique that involves spreading your investments across different asset classes, industries, and geographical regions. This helps reduce the impact of poor performance in any single investment, thus lowering the overall risk of your portfolio. For beginners, investing in low-cost index funds or ETFs is an easy way to achieve diversification. Vanguard ( and BlackRock ( offer a wide range of index funds and ETFs that cater to various investment objectives.

Step 7: Stay Informed and Keep Learning

Successful investing requires continuous learning and staying informed about market trends, economic developments, and personal finance best practices. Some reliable sources of information include:

  1. Financial news websites: CNBC (, Bloomberg (, and The Wall Street Journal (
  2. Financial blogs and podcasts: Smart, Simple Wealth Podcast (alright we might be a bit biased! ;), The Motley Fool (, The Balance (, Retire With Style (with Dr. Wade Pfau) and Retirement Researcher (
  3. Books: Top 10 Investment Books for Beginners in 2023: Classics to Latest Releases

Step 8: Reach Out for Professional Advice

Seeking professional financial planning and investment advice becomes crucial when your financial situation becomes too complex to manage on your own. As your assets grow, you may face intricate tax implications, estate planning concerns, and a diverse array of investment options, making it challenging to navigate the financial landscape. A qualified financial planner or investment advisor can provide personalized guidance, taking into account your unique circumstances, goals, and risk tolerance. They possess the expertise to help you develop a comprehensive and tax-efficient strategy, ensuring that you make well-informed decisions to maximize your wealth and secure your financial future. Ultimately, entrusting a professional, like the ones at Quraishi Law & Wealth, with your financial planning can save you time, reduce stress, and minimize costly mistakes, allowing you to focus on other aspects of your life with confidence that your finances are in capable hands.