Don't Know Where to Invest? We've Got You Covered

Investing is a crucial part of building financial wellness, but it can seem overwhelming if you don't know where to start. No matter what stage of life you're in, whether you're just starting out or nearing retirement, it's never too late to start investing. Investing is not just for the wealthy, but rather anyone with a desire to secure their future. Here are three investment options that will help set you on the path to financial success.

1. Invest in yourself

One of the most important investments you can make is in yourself. By investing in yourself, you increase your earning potential and create opportunities for career advancement. Warren Buffett, considered one of the world's greatest investors, believes that "The best thing you can do is to be exceptionally good at something...So the best investment by far is anything that develops yourself."

Elon Musk is one of the wealthiest individuals in the world. His single best piece of advice? "Constantly think about how you could be doing things better, and questioning yourself." Investing in education, skills, and knowledge can open doors to better-paying jobs and opportunities that would have otherwise been closed off. Consider furthering your education through courses, certifications, or even a degree.

Investing in yourself also includes taking care of your physical and mental health. Consider investing in gym memberships (but only if you use them!), therapy sessions, or meditation practices. A healthy mind and body are essential in creating a solid foundation for your future. Remember that health equals wealth!

2. Invest in a 401(k) and IRA

Dave Ramsey conducted the largest survey of millionaires ever and found that only 2% came from wealthy families. The survey found that the key to financial success and becoming a millionaire was through disciplined investing. In fact, 80% invested in their workplace plans like a 401(k) or 403(b) and took advantage of the free matching from their employers and the tax benefits. In addition to their company investment plans, three out of four also invested in their own brokerage accounts, Roth IRAs, or traditional IRAs.

These accounts allow you to invest money pre-tax, earn interest over time, and defer taxes. 401(k) accounts are typically employer-sponsored, whereas anyone can open up an IRA. Start by contributing as much as you can afford, and if your employer matches contributions, try to maximize your contributions to take full advantage of this benefit. Don't leave free money on the table!

3. Invest in low-cost ETFs

Investing in stocks is one of the best ways to build wealth over time. One of the most important factors in determining how well your investments will do are the fees you pay. Even small fees can add up quickly. For example, let's say you have a portfolio worth $100,000 and you pay an annual fee of 1% with an annual return of 12%. Over 20 years, you would pay $116,000 more in fees compared to the same portfolio with fees of 0.25%! Fees can make a big difference over time.

Exchange-traded funds (ETFs) are an easy and affordable way to invest in the stock market. They're like mutual funds, but they can be bought and sold like stocks, giving you more control over your investment strategy. ETFs tend to have lower management fees than mutual funds do, making them a more cost-effective option. When investing in ETFs, consider diversifying your investments by investing in different sectors of the market, such as large cap, small cap, and international stocks.

Investing in target-date funds is a great way to start if you don't know where to begin. The investments are diversified within the fund, and as you near your target retirement date, the fund will become more conservative to reduce risk. This will help ensure you have enough funds available when it comes time to retire. It's important to remember that no investment is entirely risk-free, so make sure to do your research before investing in any particular asset or fund.

Investing can seem daunting at first, but it's essential for building financial stability over time. By investing in yourself, contributing to a retirement account, and diversifying with low-cost ETFs, you can start building a solid foundation for your financial future. Remember, it's never too late to start investing -- the key is to start small and stay consistent.