Should I wait for a market crash?

No. Across rolling 20-year windows since 1928, the S&P 500 has positive real returns over 95% of the time. Timing the entry costs more than entering at a slightly bad moment.

How much do I need to start?

$1 in a fractional-share brokerage account, or whatever your 401(k) lets you contribute (often 1% of pay). Fidelity, Schwab, and Vanguard all have zero account minimums.

What should my first investment be?

A broad-market index fund: VTI/FZROX (total U.S. market) or VT (total world). Single-fund portfolios outperform 80%+ of stock pickers over 10+ years, with one decision and one fee.

Answer · Investing

When should I start investing?

By Yinka Olayokun Published May 12, 2026 Reviewed May 12, 2026

Direct Answer

Start investing as soon as you have (1) a starter emergency fund of $1,000–$2,000, (2) no credit-card debt above ~7% APR, and (3) any employer 401(k) match in play. Time in the market matters more than amount: $200/month invested from age 25 to 65 at 7% real return finishes near $525,000; the same $200/month from age 35 finishes near $245,000.

The three boxes to tick first

A starter emergency fund prevents a surprise expense from forcing you to sell at a loss. Killing 18%+ APR debt is a guaranteed return that beats stocks. And capturing an employer match is free money, declining it is a salary cut.

Why time beats amount

Two investors each put in $48,000 total. Investor A: $200/month from 25 to 45, then stops. Investor B: $200/month from 35 to 65, never stops. At 7% real return, A ends with about $510,000 at 65; B ends with about $245,000. A invested less money but had 10 extra years of compounding.

Frequently Asked Questions

Should I wait for a market crash?: No. Across rolling 20-year windows since 1928, the S&P 500 has positive real returns over 95% of the time. Timing the entry costs more than entering at a slightly bad moment.
How much do I need to start?: $1 in a fractional-share brokerage account, or whatever your 401(k) lets you contribute (often 1% of pay). Fidelity, Schwab, and Vanguard all have zero account minimums.
What should my first investment be?: A broad-market index fund: VTI/FZROX (total U.S. market) or VT (total world). Single-fund portfolios outperform 80%+ of stock pickers over 10+ years, with one decision and one fee.

Sources

S&P 500 rolling-period returns , NYU Stern (Aswath Damodaran). Verified May 1, 2026.

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