This year, we've been giving you 12 steps — one each month — that you can take to move forward on the road to financial wellness. 

In past months, we've given you tips for budgeting, earning more, spending less, shoring up your retirement savings and more. You can review previous month's steps under the Financial Wellness tag.

It's time for step 11!

We know that the world of investing can be confusing, especially if you haven't done much investing yet. Fortunately, Commonwealth One can help with this! Here’s how to start investing in five easy steps.

Step 1: Define your tolerance for risk
If you’re investing, be prepared for potential losses, because there are no sure things. But how much loss can you take? Your personal risk tolerance will vary according to the time horizon you’re working with, the amount of money you can afford to lose and your objectives. You can define your tolerance for risk by paying a bit more attention to your gut instincts. When you hear about a stock market decline on the news, is your first thought that you would want to get out of stocks immediately, or would you want to "buy low" and ride the wave?

Step 2: Define your investment goals
There are a few questions to ask yourself when defining your investment goals: Why are you investing this money? Do you hope to save enough money for a down payment, or to fund your retirement? Or, are you simply looking for a way to grow your money? Identifying your investment goals will help you choose your investment vehicles and the amount of money you’re comfortable investing.

Step 3: Determine your investing style
Next, you’ll need to find an investing style that suits your personality and investing goals. Here are your basic choices:

• Active management – personally managing your investments. This can be a great choice for an investor who is confident in their knowledge of the market and probably not a great place to start for a beginner.
• Broker/financial advisor – allowing an outsider to manage your investments and make decisions regarding your portfolio.
• Robo-advisor – an automated option that typically costs less than a traditional broker and works with your goals, risk tolerance level and other personal details. Each of these come with benefits and drawbacks. Personally managing your own investments can be a time commitment and you'll need a variety of resources and research you can tap into over time. A broker or financial advisor can cost money, so you will want to understand how their fees work. Robo-advising may be a less expensive option, but you have much less control over your investments.

Step 4: Choose your investment account
You’re ready to choose your investments! Here are some popular first-time investments:

• Bonds–a loan to a company or government entity which agrees to pay you back in a specified amount of years. You’ll get modest dividends until the bond matures. Bonds are low-risk, but offer lower long-term returns.
• Exchange traded funds (ETFs)–individual investments bundled together and traded throughout the day, like a stock. Share prices are relatively low.
• Mutual funds–professionally managed pools of investor funds that focus their investments in different markets. Mutual funds are inherently diversified, making them a good choice for beginner investors.
• Stocks–a single share or a few shares in a specific company. This can be risky, and you need to be sure to research your chosen company/ies very carefully.

5. Learn to diversify and reduce risk
Monitor and adjust your portfolio on a regular basis to keep it diversified and help minimize the risk of loss. Follow these steps to help you get started investing with more confidence.

If it all still sounds like a lot to manage, there's help! CommonWealth One Financial Network Advisor Timothy States can help people who are just getting started or who want to review or switch their strategy. To schedule a complimentary consultation with Tim, just give us a call, stop by your local branch or click here to request an appointment!