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Investing Basics: How To Get Started
By Lincoln Edgemon / 04/02/2025 / Your Money
If you’ve ever considered investing, you might be surprised at the number of resources available. With just a few small steps, you could be setting yourself up for a brighter, more financially stable future. Whether you’re saving for retirement, a big purchase or even educational expenses, these principles can provide a solid starting point.
Start with your goals
One of the first steps to take when investing is determining your investment goals. The “why” behind your investments will help determine the best decisions to make. Whether you’re trying to save for a down payment on a vehicle or want to set yourself up for a relaxing retirement, it’s important to remember that investing usually focuses on long-term results. Having clear goals can help make each step in the right direction more meaningful, even if it’s a small step.
Ways to invest
There are plenty of investment opportunities out there, from potentially high-yield selections to lower-risk investments like mutual funds or corporate demand notes, like GM Financial Right Notes®.1 Either way, investing can yield significantly more money over time than simply stashing it away in a traditional low-interest savings account.
- Stocks are pieces (shares) of ownership in a company. You make money either by selling shares after the stock value increases or, if the company pays a dividend, you can keep your shares and earn regular returns from dividends. Dividend payments are a percentage of cash profits or reserves distributed regularly to the company’s stakeholders.
- Bonds are securities from corporations or the government that pay you regular interest payments over a set amount of time.
- Mutual funds are securities that combine funds from multiple sources to create a diversified portfolio of stocks, bonds or other assets, managed by professional fund managers.
- Other investments like real estate, commodities and index funds are also popular choices and can have more immediate returns.
With the right resources, deciding on an investing strategy can be easy. Understanding your level of risk tolerance is a key factor in determining the best investment option for you.
Understanding risk and return
Keep in mind that all investments come with some level of risk, though that level varies between investments. Before deciding your risk tolerance, think about the following:
- Investment Timeline: How long do you have before you’ll need to access your invested money? A longer timeline typically means you have a higher risk capacity, or higher ability to take on more risk.
- Available Funds: Do you have a relatively reliable emergency fund? Are you spending less than the amount that you bring in each year? If so, you might be able to allocate some of your contributions into riskier avenues.
- Volatility Tolerance: Investments with higher return potentials usually also have a higher risk. Ask yourself if you are ready to face a potentially volatile market or if you would rather have a stable, slower return on investment.
Balancing risk and return is key to constructing a strong portfolio. Diversification, a strategy of having several types of assets in a portfolio, can mitigate risk.
Starting your investment journey
Investing can seem overwhelming, but it doesn’t have to be. With so many ways to get started, you can make investing work for you. Whether you are contributing a little or a lot, there is an investment strategy for everyone. Here are just a few ways you can get started:
- Open an account with a reputable brokerage firm
- Research investing apps
- Contribute to a 401(k) or other retirement plan
- Purchase a Certificate of Deposit (CD)
Investing takes time, but it also takes money. Consider designating part of your budget for investment funds. Don’t have a budgeting system yet? You can get started with something as simple as a line-item budget. And when you’re ready to learn more about investing, check out the KEYS® Online Planning For Your Future course for more information.
1 RightNotes.com are unsecured debt obligations of General Motors Financial Company, Inc. and are not guaranteed by General Motors Company. Right Notes do not constitute a savings, deposit or other bank account and are not insured by or subject to the protection of the Federal Deposit Insurance Corporation. Right Notes are not a money market fund, which are typically diversified funds consisting of short-term debt securities of many issuers, and therefore do not meet the diversification and investment quality standards set forth for money market funds by the Investment Company Act of 1940.
General Motors Financial Company, Inc. ("GM Financial") has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents GM Financial has filed with the SEC for more complete information about GM Financial and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov or by downloading them from the GM Financial Right Notes Web site at RightNotes.com. Alternatively, GM Financial will arrange to send you the prospectus if you request it by calling toll-free 1-844-556-1485.

By Lincoln Edgemon, GM Financial
Lincoln learned how to drive in a GMC Sierra and has been a fan of large vehicles ever since. She's committed to clarity in communication that helps others on their journey toward financial literacy.
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