When I was in college, I picked up a copy of The Automatic Millionaire by David Bach. His book is still one of my favorite money books and probably the first book I recommend to anyone beginning to learn about personal finance.
When I first read Bach’s book, I too, wanted to become an Automatic Millionaire! One chapter in his book talked about setting up an IRA or a Roth IRA. I was a 19 year old kid at the time, so I didn’t have a clue what that meant. All I knew was that it was something good! After reading Automatic Millionaire, I hopped onto E*Trade, opened up a Roth IRA, and transferred 100 bucks into my Roth IRA account.
And then, I was stuck. I remember Automatic Millionaire talking about investing in mutual funds, but I didn’t really know what that meant or how to put my money into that type of investment…