*Web Novel chapter below*
How to Invest in Index Funds: A Beginner’s Guide to Effortless Wealth-Building
Investing can feel like a maze of confusing options and risky bets—especially if you’re just starting out. But there’s one strategy that cuts through the noise with its simplicity, low cost, and proven results: index fund investing. If you’re searching for a beginner-friendly way to grow your wealth over time, index funds are your golden ticket. In this guide, we’ll explain what index funds are, why they’re perfect for beginners, and how to get started today—complete with trusted platforms where you can sign up. By the end, you’ll have a clear, actionable path to launch your investment journey.
What Are Index Funds?
Imagine owning a small piece of the entire stock market without having to pick individual stocks. That’s the magic of an index fund. It’s a type of mutual fund or exchange-traded fund (ETF) that mirrors a specific market index, like the S&P 500 or the Dow Jones Industrial Average. Instead of betting on one company, you’re investing in hundreds—like Apple, Microsoft, and Amazon—all at once. It’s less about chasing winners and more about riding the market’s natural growth.
Why Index Funds Are Perfect for Beginners
Index funds are the go-to choice for new investors, and here’s why:
- Instant Diversification: One fund spreads your money across hundreds of companies, so a single stock’s stumble won’t derail your progress.
- Low Fees: No need for expensive stock-picking experts—index funds keep costs down.
- Set It and Forget It: No market expertise needed. Just invest and let time do the heavy lifting.
- Proven Track Record: Studies show index funds often outperform actively managed funds, making them a reliable path to long-term wealth.
How to Start Investing in Index Funds: A 3-Step Guide
Ready to take control of your financial future? Follow these simple steps to begin your index fund journey.
Step 1: Choose a Brokerage Account
A brokerage account is your gateway to buying index funds. Think of it as your investment dashboard. Here are three top platforms perfect for beginners:
- Vanguard: The pioneer of low-cost index funds. Sign up here.
- Fidelity: Offers zero-fee index funds with no minimums. Get started.
- Charles Schwab: Known for stellar customer support. Open an account.
Pro Tip: Look for platforms with low fees, a variety of funds, and an easy-to-use interface. Most let you start with as little as $1!
Step 2: Pick the Right Index Fund
Once your account is set up, choose a fund that matches your goals:
- S&P 500 Index Funds: Tracks the 500 largest U.S. companies (e.g., Vanguard’s VOO). Perfect for broad market exposure.
- Total Stock Market Index Funds: Includes small, mid, and large-cap stocks (e.g., Schwab’s SWTSX). Maximum diversification.
- International Index Funds: Invests globally (e.g., Fidelity’s FZILX). Adds worldwide balance.
Newbie Hack: Start with an S&P 500 or total market fund for simplicity and growth potential.
Step 3: Make Your First Investment
Now, it’s time to put your money to work:
- Fund Your Account: Transfer as little as $1–$100 to get started.
- Buy Your Fund: Search for your chosen fund (e.g., VOO at Vanguard) and hit “buy.”
- Automate It: Set up automatic investments—like $50 a month—to grow your wealth effortlessly.
Quick Links:
Why Index Funds Are a Smart Choice
- Lower Risk: Diversification cushions you from single-stock disasters.
- Tax-Friendly: Fewer trades mean fewer taxable events.
- Long-Term Gains: With the market’s historical 7–10% annual return, index funds are a retirement-building powerhouse.
Risks to Keep in Mind
No investment is bulletproof. Here’s what to watch:
- Market Swings: When the market dips, so does your fund. But history shows it bounces back.
- No Big Wins: You won’t beat the market—but for most, matching it is a win.
Tips for Index Fund Success
- Invest Regularly: Use dollar-cost averaging to smooth out market highs and lows.
- Diversify Further: Add international or bond funds as your portfolio grows.
- Stay the Course: Don’t panic-sell during downturns. Long-term investors win by holding steady.
Real-Life Success Story: Sarah’s $240,000 Nest Egg
Meet Sarah, a 30-year-old teacher who invested $200 a month in an S&P 500 index fund. After 30 years, her $72,000 in contributions ballooned to over $240,000—thanks to the market’s average 7% return. No stock-picking, no stress—just consistent investing through platforms like Fidelity or Vanguard.
Start Your Investment Journey Today
Index funds are your beginner-friendly path to low-cost, reliable wealth-building. Sign up with a trusted brokerage like Vanguard, Fidelity, or Charles Schwab, pick a fund, and start with as little as $50 a month. The sooner you begin, the more time your money has to grow. Take that first step now—your future self will thank you!
There was a shadowy figure sprinting through the narrow back alleys.
It was me.
My breath was ragged, and my heart pounded so loudly it was almost deafening.
I wish it were for a good reason…
Some people glanced at me as I ran past, but they either sneered or averted their gaze, uninterested.
Well, that’s just how it is.
I never expected even a sliver of help.
That’s just how the trash in the slums are.
“Oi, you little shit! Stop right there or I’ll fucking kill you!”
And then, there was the demon-like old man chasing me down relentlessly.
No, at this point, he was a demon. His face was flushed bright red, contorted like a wrathful Hannya mask.
The thing he was wildly swinging around while stomping after me? A massive butcher’s cleaver.
Shit…
“Screw you! If I stop, you’re definitely gonna kill me! Who the hell would stop, dumbass?!”
“I won’t kill you! I swear I won’t! The knife’s just gonna sink into you a little bit, that’s all!”
“Who the hell would stop after hearing that?!”
If he stabbed me with that thing, my bones would get crushed for sure!
The reason I was being chased like this? I stole food from that old man’s shop.
Yeah, I get it—stealing is bad.
From his perspective, he’s losing business, and if it happens too often, he might go under.
But let’s think about this rationally for a second.
What if the food I stole… was something I was going to eat?
Wouldn’t that mean he should actually be grateful?
Shouldn’t he be groveling on the ground, saying, “Thank you for stealing from me! Please, enjoy your meal!”?
Tch. That old man doesn’t understand how the world works.
With that thought in mind, I darted through the maze-like alleys.
I had the layout of this place burned into my memory.
If I kept running at full speed for a little longer… I could lose him easily.
“Hah… That damn pig… Making me go through all this trouble… He should just drop dead already. Go rot in hell.”
My heavy breathing finally started to calm down.
I had run so hard my heart felt like it was about to burst, and my frustration spilled out in curses.
That old man… I’ll steal from him again. Just you wait.
As I walked, thinking about my next heist, two figures stepped in front of me, blocking my path.
Get out of my way. Drop dead.
“Yo, looks like you’re doing well for yourself.”
“How about sharing some with us? You know, as fellow slum dwellers.”
I looked up and saw them—two guys who were practically the bosses of this slum.
The term “boss” might sound playful, but in a place where corpses were just part of the scenery, it meant something very different.
Being big and strong was something they had in common with typical gang leaders, but what set these two apart was their complete willingness to kill.
Without guilt or hesitation, they could kill for their own benefit.
That’s just how people in the slums were.
Unlike me, they had no sense of decency. It was sickening.
Uh… I knew these guys had that kind of personality, but I couldn’t quite remember their names.
What was it again…?
“H-Hedoro…?”
“Oi, what the hell do you mean by ‘sludge’? You talking about my looks? My personality? Either way, I’ll fucking kill you.”
Shit, that wasn’t it?
I just went with a name that perfectly described both their appearance and personality, but I guess I got it wrong.
“We’re at the bottom of society. That’s exactly why we need to help each other out, right? C’mon, we’ll help you someday too, so just hand it all over this time.”
They only approached me to take my spoils.
W-Wait… all of it? Not just a portion?
That’s some shitty negotiating.
…No, they probably weren’t planning on negotiating at all.
If I refused, they’d just beat the crap out of me and take it anyway.
Besides, it was stolen goods. I couldn’t ask for help—I’d just get caught instead.
Not that anyone would protect a slum-dwelling demon in the first place!
Now then… what should I do?
Not to brag, but I was weak.
There was no way I could take down two ruthless slum dwellers in a fair fight.
But that didn’t mean I was about to just hand over my spoils either.
So that left me with…
Out of the corner of my eye, I caught sight of a figure.
They were glancing around as if looking for someone.
…Perfect.
“AAAAAAAHHHHHHHHHHHHHHHHHH!!”
“Wha—!?”
“Whoa!?”
A loud scream. That was my move.
The two of them weren’t the type to suddenly start yelling, so they froze in shock.
Their attention was now completely on me… and so was the other figure’s.
“UNDERSTOOD!! I’LL HAND IT ALL OVER!! AFTER ALL, YOU GUYS WERE THE ONES WHO TOLD ME TO STEAL IT IN THE FIRST PLACE!!”
“Hah? We never—”
They looked at me like I’d lost my mind.
Good. Louder.
Loud enough for that person to hear.
“‘That dumbass old man is an easy target, lol! No matter how much you steal, he won’t notice, lol!’—THAT’S WHAT YOU SAID, RIGHT?! AND YOU WERE RIGHT!!”
“W-We never said that…! B-But if you’re giving us everything…”
Sweating nervously, they still reached out their hands, prioritizing getting the stolen food over whatever nonsense I was yelling.
And then, I grinned.
“Oh? I see, I see. ‘Dumbass,’ huh? Yeah… Considering how much you punks have been messing with me, I must be a dumbass.”
The figure I had spotted earlier was now right behind them.
Smiling ear to ear.
Veins bulging across his face.
That terrifying old man.
Heh… nailed it.
“Huh? Who’s this old guy?”
“W-Wait… No way…! I-It’s him…!!”
They only just realized it now, but it was too late.
I had already quietly slipped away.
Enjoy yourselves.
With that butcher’s cleaver-wielding old man who had been chasing me!
“I’LL SLAUGHTER YOU BASTARDS FIRST!!!”
“GYAAAAHHHHHHHHH!?”
“H-HELP…! YOU BASTARD, YOU DIDN’T EVEN LOOK BACK!!”
But I wasn’t watching anymore.
I was already sprinting away at full speed.
“Hahaha! You idiots!”
“You fools should just play around and kill each other!”
“You and I, we’re on different levels, different classes!“
…What class, though?
“Phew… It’s been a long time since something went this well. I feel amazing.”
After running for a while, the screams and shouts faded away.
Still holding the food, I was able to dispose of the obstacles in my way.
This was truly the best outcome I could have hoped for.
This is how the world should always go—everything working out in my favor.
Now, it’s time to head to the safe house.
While walking and thinking that, I suddenly noticed…
“Was there always a building here?”
In front of me, a large mansion appeared.
It wasn’t exactly in the deep parts of the slum, but it was still within the slum area.
For a place where only the lowest of the low gathered, a building like this…
And it looked expensive.
An ominous aura surrounded it for some reason, but… it was probably a mansion owned by someone with quite a bit of money.
Hmm… This isn’t a vacation home, is it?
There would be no reason to build something like this here.
Honestly, it was suspicious. Suspicious, but…
“If I could make a big score here, I wouldn’t have to take such crazy risks again…”
How long would this stolen food last me?
At most, a week. Which means, in about a week, I’d be playing a life-or-death game of tag again.
If that’s the case, maybe I should try something big here.
“Alright, let’s go for it.”
I grinned and snuck into the mansion.
I had no idea that this would be the biggest mistake of my life.