In order to build wealth and achieve financial independence, you have to start investing your money. It's a process that takes time and patience, but if you're willing to learn the basics, you can get started today! In this 10-step guide, I teach you what you need to know about the basics of wealth building and investing. From picking the right investment vehicles for you to understanding risk and reward, I cover some basic financial education to get started.

I have to caution you, though, that there are no get-rich-quick schemes here. If you want to change your financial situation and build wealth, the vast majority of investing is about building wealth over time and requires patience.

If you want to know more, you can also grab my 10-Step Guide to a Financially Free Life.

The first step to investing is understanding what your investment goals and financial goals are. Whether you're trying to save for retirement, an emergency fund, or something else entirely, it's important to know why you're investing in the first place. This will help inform the rest of your decisions as you move forward.

Task One:

List your financial goals.

List your investment goals.

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No matter what your investment goal is, there's always some risk involved. It's important to understand how much risk you're comfortable taking on before making any decisions. Are you willing to take on more risk for the potential of higher rewards? Or would you rather play it safe and go with lower-risk options? The biggest risk to your financial freedom is not investing in things you understand. Consider your answer to this question carefully, as it will help guide the rest of your investment decisions.

Task Two:

Describe your risk tolerance.

Once you know your goals and risk tolerance, it's time to start picking out which investment vehicles are right for you. There are a lot of options out there, from stocks and bonds to mutual funds and Exchange-Traded Funds (ETFs). Do some research and talk to a certified financial planner or a financial advisor to figure out which options make the most sense for you.

My favorite ways to invest are in the stock market by buying companies I've researched and understand, and real estate investing which helps generate income and makes me extra money to help build wealth fast.

Task Three:

Write down which investment vehicles are right for you. Do your research.

Related Reading: Why saving and investing is the key to true freedom and flexibility for women

Now that you know what you want to invest in, it's time to open an investment account. This is where you'll actually store your money and make your investments if you're investing in equities.

There are a few different types of accounts to choose from, so do some research to figure out which one is right for you. If you're in Canada, you might consider tax-advantaged accounts like a TFSA or an RRSP account. If you're in the US, a 401 k, ROTH or a ROTH IRA might be something to look into. Retirement accounts often have retirement benefits and are a great way to invest money and build wealth. Retirement savings held in a retirement account can support your financial stability when you hit retirement age.

Task Four:

Make a list of the accounts that you qualify for and choose the best options for you.

Now comes the fun part: it's time to deploy your money and invest! Depending on what investment vehicles you chose in Step Three, you'll have different options for how to actually make your investments.

For example, if you're buying stocks, you can do so through a brokerage account. If you're investing in mutual funds, you can do so through a mutual fund company or a financial advisor, and many Robo advisors are available at online brokerages.

Task Five:

Choose your investments based on your own research.

Once you've made your initial investment, it's important to keep an eye on how it's performing. This doesn't mean checking your account every day (that would be unnecessary and possibly even harmful), but you should check in periodically to see how your investments are doing. This will help you make sure that you're on track to reach your goals.

Long-term investing doesn't require a lot of action, only adding to your portfolio periodically, or when there's been a big change in one of your investments that requires a deeper dive and a potential exit. There are a few ways to monitor your investments, but the easiest is usually through the brokerage that holds your investments and accumulated wealth.

Task Six:

Set up a monitoring schedule that matches your tolerance and personal finance goals.

As time goes on, the composition of your portfolio will change. Some investments will go up in value while others go down. To ensure that your portfolio remains well-balanced, it's important to rebalance it periodically.

My approach to rebalancing involves selling when assets have appreciated way beyond their intrinsic value and adding when they are "on-sale".

Task Seven:

Write down what a diversified portfolio means to you and list your investment strategies related to such.

Investing is a long-term game, so it's important to review your progress from time to time. Are you on track to reach your goals? If not, what changes do you need to make? This is an important step in the process, as it allows you to course-correct as needed.

This is also a great time to assess your savings rate and whether you're investing enough money to grow wealth. The secret to building wealth is time and patience, but you have to save money to invest it and as your earned income goes up along with your other assets, you may want to make adjustments to your investing contributions. When you increase your income, you should move more money over to your investing bucket.

Task Eight:

Set up a periodic reminder to review your progress and reassess whether your current contributions still make sense.

Investing can be a volatile business, and there will inevitably be ups and downs. It's important to remember that this is normal and to stay the course even when things are tough. The market will eventually recover, and if you sell everything during a downturn, you'll miss out on the rebound. If you're in it for the long haul, ebbs and flows don't matter over a 20, 30, or even 40-year period.

Task Nine:

Give yourself a High Five!

Investing doesn't have to be all about numbers and analytics. Yes, those things are important, but at the end of the day, investing is about giving yourself a better future. So don't forget to have fun while you're doing it!

Related Reading: Lack of knowledge drives fear when the stock market crashes.

I hope this guide has been helpful in getting you started on your investing journey. Remember, the most important thing is to just get started. The sooner you start, the sooner you'll be on your way to reaching your goals. Good luck!

If you want to learn more about investing, you can join my community - The Wealth Builders Workshop, where you'll learn everything you need to know to build your wealth. In it, I go into more detail and give you even more resources to help you on your way. Investing doesn't have to be complicated or intimidating - with a little bit of knowledge and effort, anyone can do it! So what are you waiting for? Get started today!

XX, INVESTED MOM