Wealth Challenge: Starting your own investment journey has never been simpler. Here’s a guide to get you going.

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Putting your emergency fund in a high-yield savings account is a wise decision. Keeping that money "liquid" (meaning it's easily accessible and not invested) ensures that you can access it immediately when the need arises.

(This is Day 12 of the 31-day Wealth Challenge. You can start from the beginning by signing up for our daily email newsletters), or see the challenge here.)

Once you've established an emergency fund that covers 3 to 6 months of essential expenses, it's time to think about investing. Generally speaking, the stock market tends to yield better returns than even the most lucrative savings account interest rates. In simpler terms, your money can grow more effectively when invested rather than just saved.

Currently, the United States essentially operates under two distinct economic systems: one for individuals whose wealth is generating more wealth, and another for those who are incurring debt to finance their expenses. 

The first category, the asset holders, have been having a great run. They refinanced mortgages or bought homes when rates were low, their investments have benefited from the stock market’s historic repeated highs, and their savings are raking in solid interest.  For the second, interest rates on debt keep climbing, rent keeps going up, and inflation has brought bills sky-high. 

Aspiring to be part of the asset holder group is a worthy goal. Many individuals in that category have achieved their status through strategic investing.

If you're new to investing or have only put money into retirement accounts, it may seem intimidating, almost like you're throwing your money away. Every type of investment carries some level of risk. This is precisely why it's important not to use your emergency fund for investments — you could need that cash when the market takes a downturn.

You don't need to be a financial guru to profit from the stock market. Consider investing in index funds, which consist of a diverse range of stocks rather than being tied to a single company. This approach helps to distribute both the risks and potential gains across multiple investments.

Starting with a small investment is a great idea. Even if your budget is limited to just $25 or $50 at the moment, setting up an account and putting that money into the market is beneficial. You'll witness the growth potential firsthand, and when you do come into some extra funds, your account will be primed for action to maximize those opportunities.

The majority of investors aren't engaged in day trading or constantly selecting stocks. Adopting a "set it and forget it" strategy can effectively help you build your savings without the anxiety of tracking every corporate earnings report. If you're interested in diving deeper into your investments, that's fantastic, as there's plenty of knowledge to acquire. However, this guide is designed to help you take your initial steps into the market