08/08/2026
This is the biggest mistake I see from those who are just starting on their personal finance journey.
Contributing to your 401k, Roth/traditional IRA, or taxable brokerage is just the first step!
You then need to actually INVEST that money! Without investing it, the most just sits there in cash and isn’t working for you at all.
What should you actually invest in?
Here’s a three-fund portfolio that is a simple, low-cost strategy built on the idea that you don’t need dozens of funds to be well-diversified with just three broad index funds covering the entire market (aka the bogleheads 3-fund strategy)
The three components are:
Total US Stock Market: every US publicly traded company, small, mid, and large cap
Total International Stock Market: every non-US publicly traded company
Total US Bond Market: broad investment-grade bond exposure for stability
All you do is pick your allocation for each fund based on your age/risk tolerance (e.g. 60/30/10 etc.) and rebalance yearly.
You now have a simple, diversified, and cheap investment portfolio that you didn’t have to pay a financial advisor for.
Here are the fund tickers:
US Stock: VTSAX/VTI (Vanguard), FSKAX/FZROX (Fidelity, 0% fee), SWTSX/SCHB (Schwab)
Int’l Stock: VTIAX/VXUS (Vanguard), FTIHX/FZILX (Fidelity, 0% fee), SWISX/SCHF (Schwab)
US Bond: VBTLX/BND (Vanguard), FXNAX (Fidelity), SWAGX/SCHZ (Schwab)
This is NOT investment or personalized advice. Make sure to check with a licensed financial advisor for a recommendation based on your income mix, age, and goals.
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Inspired by: Abby Conway