What Should I Invest In? The Ultimate 2025 Beginner's Checklist

"What should I invest in?"

It's the most common question in personal finance. With crypto, AI stocks, bonds, and gold all vying for attention, it's easy to get overwhelmed.

In 2025, the principles of building wealth haven't changed. Here is your step-by-step checklist to answer that question.

Step 1: The "Sleep at Night" Fund

Before you invest a dime, ensure you have an **Emergency Fund**. This should be 3-6 months of living expenses kept in a High-Yield Savings Account (HYSA). Do not invest this money. It is insurance, not an investment.

Step 2: The "Free Money" Match

Does your employer offer a 401(k) match? If they match 3% of your salary, and you don't contribute, you are literally throwing away free money. **Always contribute enough to get the full match.** That is an instant 100% return on investment.

Step 3: High-Interest Debt

If you have credit card debt with 20%+ interest, *investing* in the stock market (expecting 10% returns) makes no mathematical sense. Pay off the toxic debt first. That is a guaranteed 20% return.

Step 4: Tax-Advantaged Accounts

Once the above are handled, look at a **Roth IRA**. You contribute post-tax money, but it grows tax-free, and you can withdraw it tax-free in retirement. The limit for 2024/2025 is around $7,000 (check the latest IRS limits).

Step 5: What to Actually Buy?

Okay, the money is in the account. What ticker symbol do you buy?

**For the "Set it and Forget it" Investor:** A Target Date Fund (based on your retirement year).

**For the DIY Investor:** A "Three-Fund Portfolio" consisting of a Total US Stock Market Index Fund, a Total International Stock Market Index Fund, and a Total Bond Market Fund.

Summary

Don't chase the latest hype. The answer to "what should I invest in" is usually a boring, consistent strategy of low-cost index funds within tax-advantaged accounts. Future you will thank you.