(BPT) - Investing is a smart way to build wealth. You can start with a small amount and gain confidence as you go. With steady contributions, you can help your money grow even faster. Even if you're starting with $500 or $1,000, making small, consistent contributions can really add up over time.

In this guide from Navy Federal Investment Services, you'll learn how to start investing with confidence so you can take your first step toward growing your money in a way that works for your life.

Step 1: Set your financial goals

Before you put a single dollar into an investment account, it helps to know why you're investing. Your goals will guide how much to invest, what to invest in and how much investing risk makes sense for you to take on.

Your goal matters because your time horizon depends on whether your goal is short term or long term. Short-term and long-term goals usually require different investing approaches. Goal-based investing can help you shape your strategy and build a plan that fits your goals.

Step 2: Decide how much to invest

What matters more than the amount of money you invest is the habit of investing consistently over time, even in small amounts. That's what helps to build real wealth.

So how much should a beginner invest? There's no single right answer. Many people aim to invest around 10%-15% of their income. If that's not realistic, start with whatever amount you can afford. Even $25 or $50 a month is a meaningful start. Add investing to your budget and schedule a transfer so you stick with it.

Step 3: Understand your risk tolerance

Generally speaking, investments with higher potential returns also come with higher potential losses. Risk tolerance is how comfortable you are with your investments moving up and down. It's an important part of building an investment approach that works for you.

Step 4: Choose the right investment account for your goal

Once you know your goals and risk tolerance, it's time to pick the right type of account for your investments. The account you choose can have a big impact on how your money grows, particularly when it comes to taxes.

Step 5: Build your investment portfolio

Now, you get to decide how to put your money to work. You can make smart investing decisions without being a market expert. Many beginner-friendly investment options make it easy to build a diversified portfolio and start investing with confidence right away.

You can choose investments across different asset classes, like stocks, bonds and cash. Many beginners start with funds because they help spread risk across many companies.

Step 6: Invest consistently and be patient

Picking your investments is a big milestone on your wealth-building journey, but it's not the finish line. Once your portfolio mix is set, focus on steady behavior.

One of the simplest ways to stay on track is to automate your investments. Set up recurring transfers to your investment account so money moves automatically on a schedule that works for you. When investing happens in the background, you're more likely to stick with it.

Keep in mind that using this method won't guarantee profits or make you immune to losses during downturns. You'll still need to diversify your investing dollars among a variety of companies, industries and sectors to lower your risk and increase the likelihood of earning returns.

Find out more about the investment services available to Navy Federal members, including Digital Investor and personalized guidance from their team of financial professionals.

This content is intended to provide general information and should not be considered legal, tax or financial advice. It is always a good idea to consult a tax or financial advisor for specific information on how certain laws apply to your situation and about your individual financial situation.

Navy Federal Financial Group, LLC (NFFG) is a licensed insurance agency. Non-deposit investments, brokerage, and advisory products are only sold through Navy Federal Investment Services, LLC (NFIS), a member of FINRA/SIPC and an SEC registered investment advisory firm. NFIS is a wholly owned subsidiary of NFFG. Insurance products are offered through NFFG and NFIS. These products are not NCUA/NCUSIF or otherwise federally insured, are not guaranteed or obligations of Navy Federal Credit Union (NFCU), are not offered, recommended, sanctioned, or encouraged by the federal government, and may involve investment risk, including possible loss of principal. Deposit products and related services are provided by NFCU. Financial Advisors are employees of NFFG and are employees and registered representatives of NFIS. NFIS and NFFG are affiliated companies under the common control of NFCU. Call 1-877-221-8108 for further information.