Define your financial goals
Set your time horizon
Assess your risk tolerance
Build an emergency fund first
Pay off high-interest debt
Choose an asset allocation
Diversify across asset classes
Diversify within each asset class
Use low-cost index funds or ETFs
Include domestic and international exposure
Include different market capitalizations
Include bonds for stability
Include cash or cash equivalents as needed
Avoid concentrating in one sector
Avoid overexposure to one company
Rebalance periodically
Invest consistently over time
Keep costs and fees low
Review and adjust as life changes