Start investing today for beginners, but it’s a crucial part of saving for financial goals. And starting early is key to making the most of a mathematical concept called compound interest. But the first thing you need to do before you start investing is understand your risk tolerance.

This will help you figure out how much you can afford to put in the stock market, as well as how to invest it. You’ll also want to assess your income sources and determine if you have an emergency fund or other savings in place. Having at least six months of expenses in place will help ensure you can afford to keep investing even when markets drop or other unexpected costs pop up.

Start Investing Today: A Step-by-Step Plan for Beginners

Once you have a clear idea of your goals and your comfort level with risk, you can begin researching brokers and opening an investment account. You’ll want to consider how much money you have to invest, the minimum required to start and whether your employer offers a retirement account with matching funds. You’ll need to decide whether you want to manage your investments yourself, or use a robo-advisor.

When you’re ready to start investing, it’s important to set a regular schedule of contributions. It will make it easier to stay disciplined, even when the market fluctuates. Avoid the temptation to sell at low points or to buy and sell based on news or opinions. And don’t forget to reassess your goals and risk tolerance from time to time.