Whether you’re saving for retirement, building emergency savings or making major purchases, having a financial plan is essential. But the complex world of investments can feel intimidating. That’s why Step-by-step investment strategies are so helpful—they take the mystery out of investing and make it more accessible for beginners.

Step 1. Set Out Your Goals

Step-by-step investment strategies your long- and short-term goals to help guide the types of investments you make. For example, maybe you want to retire comfortably at age 65 or buy a vacation home in the next 10 years. Or maybe you’re saving to fund your children’s education or pay off high-interest debt. Once you’ve determined your goals, set up a timeline to reach them so you can stay on track.

Step 2. Determine Your Risk Tolerance

Once you’ve identified your goals and understand your tolerance for risk, create an asset allocation strategy to guide the investments in your portfolio. This is the process of dividing your investments between different asset classes, such as stocks, bonds, real estate and cash. By diversifying your portfolio, you can lower the overall risk of your investments and weather market ups and downs more smoothly.

Remember that your investments can be affected by changes in market conditions and life events, so it’s important to review and update your strategy regularly. This could include rebalancing your portfolio, adjusting your asset allocation or changing your approach altogether. That’s one of the reasons that seeking guidance from a financial professional can add value to your investing journey.