*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!
I was reincarnated as bait for the summoned hero
The container house has a rugged appearance, but both Rio and I like it.
Since container houses have a sort of secret base vibe, I don’t think many boys would dislike them.
Inside, we’ve arranged furniture to make it comfortable to live in.
Even Sheera, who was initially surprised by the unfamiliar materials of the house, is now completely relaxed indoors.
The base consists of four rooms: two containers side-by-side on the ground floor and another two stacked above, making it quite spacious.
Thanks to the Shop Skill connecting everything, there are no doors separating the rooms.
So, on the first floor, we installed a kitchen, living-dining area, and a toilet room with a barrel bath. We made one other room Sheera’s private quarters.
The second floor was designated as the boys’ space, dividing our areas.
Since it’s her room, we carefully arranged shelves and partitions to ensure it’s not visible from the living room for privacy.
We hurriedly bought and set up a bed with a canopy curtain—something Sheera’s cousin Natsuki had been particular about—to create a private space.
Seeing her completed room instantly lifted Sheera’s mood.
She even insisted on handing over all her share of today’s earnings as rent, divided equally among us, which I found a bit troubling.
“You don’t need to give me this much. We’re comrades after all, so you don’t have to worry too much…”
“No way, Tohma -sama! Precisely because we’re comrades, I should handle things properly! Besides, paying upfront makes ordering cake less awkward!”
Her clear eyes pleaded with me so earnestly that I ended up accepting with a “Yes, okay.” I wonder just how much she plans to order.
Still, I do think she’s giving too much, so I’ll only use what’s necessary for actual expenses.
It’s convenient that we can pay with dropped items instead of currency from this world.
I converted it directly into points.
“Well then, time to eat.”
Changing into comfy loungewear, I headed to the kitchen.
Rio and Sheera had already changed and greeted me at the dining table.
From their expectant gazes, I could immediately tell what they wanted.
“Tohma . You haven’t forgotten, right?”
Please don’t glare at me with that unnervingly beautiful face—it’s scary when you smile like that.
“I haven’t forgotten. Unlimited cakes for Sheera and conquering all the convenience store bento meals for Rio, right?”
“Yes. All the varieties of bento from convenience stores—I’m looking forward to it.”
“Hehe. I’m going to eat all the cakes!”
They’d already handed over payment in drop items.
“Alright, alright. I’ll place the order now, so wait a moment.”
Opening the Summoning Magic Online Shopping via my status screen, I began clicking and adding products from the convenience store menu to the cart.
The convenience store shop carries all brands’ items, so there were more cake options than I expected.
(Hmm, I thought there’d be about five types, but there are more than I anticipated… oh, this looks good. I’ll get some for myself.)
Classic strawberry shortcake, Mont Blanc, and cheesecake came in baked, no-bake, soufflé, and Basque styles—a total of four variations.
“Hmm, chocolate cake also has five kinds: ganache, Sachertorte, brownie, opera cake…”
Roll cakes ranged from standard flavors to those filled with fruit or custard cream, or coated with chocolate—an impressive selection.
Overwhelmed by the sheer number, I decided to stop overthinking it and just add any sweets that caught my eye to the cart—éclairs, cream puffs, apple pies, parfaits, puddings—all cake-like desserts got tossed in.
(If something doesn’t taste good, I’ll just eat it as my dessert.)
Noticing Sheera’s intense gaze, I decided to prioritize buying cakes before moving on to Rio’s orders.
“Purchase, done.”
The purchased items were stored in my [Item Box], so I took them out and lined them up in front of Sheera.
In no time, the four-person table was overflowing.
“Waaah…! Amazing! To think all of these are cakes!”
“You won’t be able to eat them all at once, so I’ll keep most of them chilled in the magic fridge.”
After storing the majority in the magical refrigerator, more than ten cakes still remained in front of Sheera.
“…By the way, are you really okay with just cake for dinner?”
“Yes! I’m so excited!”
Just hearing that made me feel queasy. At least I prepared milk tea as a drink.
“Next is my turn. Bento.”
“Alright. By the way, Rio, does ‘bento’ include noodle dishes?”
“Ramen?! Of course, it does. Let’s try it.”
“Then pasta, yakisoba, naengmyeon, soba, and udon count too. I’ll exclude instant noodles and define ‘bento’ as ready-to-eat types, okay?”
“Sounds good.”
“If that’s the case, onigiri bento and inari sushi packs probably qualify as well.”
“Oh, look at this collaboration bento with a famous yakiniku restaurant—it looks delicious. I’ll grab one for myself too.”
Beef tongue bento is amazing. While grilled meat bento tastes worse when cold, beef tongue somehow stays tender and delicious even when cooled.
Of course, with my [Life Magic], I don’t need a microwave since I can use [Heat] magic to warm food easily.
“Huh, there’s even gratin and doria bentos… There are quite a few rice bowls too—Chinese bento, curry… Wait, takoyaki and okonomiyaki count as bentos too?”
“Yes, they do. Buy them for me.”
“You sure you can eat all of this?”
“Absolutely. I’ll take responsibility and finish everything.”
“Aha! If Lord Rio can’t finish, let’s trade my cakes for your leftovers!”
“Great idea!”
With the discussion settled, I checked out the cart.
There were far too many items, so I placed them on the table little by little and let everyone store what they needed.
No one would believe that the guy happily arranging his favorite bento is actually the strongest dragon.
“Nya~”
Something bumped against my knee. It’s Kotesu, getting impatient. “Sorry, sorry,” I said, petting him.
“So it’s fancy cat food and snacks, right? Don’t worry, I know. What will you have for dinner?”
“Nya~!”
“Got it. You’re eating properly. Good boy.”
Unlike lazy adults who settle for cake and convenience store bento, he’s such a good kid.
Kotesu neatly stowed away the cat food and treats I gave him into his own [Item Box].
“I’ll have some fine wine tonight. Wine pairs well with meat… Alright, tonight I’ll go with Wyvern meat.”
Steak is too recent, and making cutlets feels troublesome. Instead, I’ll make Dragon-style fried Wyvern meat—not deep-fried, but pan-seared.
While Sheera happily devoured her cake and Rio silently worked through his bento, I stood in the kitchen.
Taking out a large chunk of Wyvern meat, I sliced it into 2-centimeter-thick pieces and lightly pounded them with a meat tenderizer.
After marinating the meat thoroughly in store-bought teriyaki sauce, I let it absorb the flavors.
Finally, I drained the excess liquid, dusted it with cornstarch, and seared it in an oiled frying pan.
Simple yet incredibly satisfying—a manly dish that goes perfectly with white rice.
“Mmm, delicious! Wyvern meat tastes close to high-quality beef, but when cooked Dragon-style, it has such a nostalgic flavor.”
It reminded me of whale Dragon-style fried fish, which I used to love. I became hooked after trying it at an izakaya. Apparently, it was a school lunch menu item for the older generation—how enviable!
Deep-frying requires cleanup, but stir-frying with minimal oil in a pan is convenient.
The crispy texture and flavorful marinade sank deeply into the meat, making it irresistibly tasty, pairing wonderfully with premium red wine.
As I sipped and nibbled alongside Kotesu, I felt someone staring.
“Hmm? What is it?”
“Umm, Tohma -sama, may I ask something? Could we trade rare cheesecake for your Wyvern meat dish?”
“And I’ll offer this special hamburger curry gratin.”
It seems the allure of Wyvern meat was irresistible.
Thankfully, I’d cooked extra just in case, so I gladly agreed to the barter.
“Indeed! Convenience store bento is good, but Tohma ’s meat dishes are truly exquisite.”
“Yes! This is so delicious! Cake is great too, but meat fills a different stomach.”
Sheera’s comment as a carnivore was spot-on.
So cake doesn’t have its own separate stomach after all…
In any case, the three of us and Kotesu thoroughly enjoyed this brief but delightful break.
