Before you even think about investing, there are important things you need to think about and take action on. First off, you need to have an emergency fund that will cover you in case, god forbid, something bad happens. This amount is different for each person but it needs to assist you in living for at least a few months. Seven to ten thousand dollars would be a good place to start. Next it is smart to have yourself covered and insured to alleviate unwanted expenses. So medical insurance, disability and vehicle insurance are huge. In the sad case you develop a very pricey medical condition you will at least know you will not have to fully fund surgery or treatment out of pocket. Also if you are sidelined because of a work related injury at your job, these insurance policies ensure you wont be up a creek and without a paddle. After these are purchased and saved, learning about compounding interest and dividends will get you excited about the world of investing.