Investing in the stock market can seem daunting, but it does not have to be. It can be an easy way to financial stability when you do it properly.

I remember being a brand new airman listening to the guy come in at my first duty station talking about the TSP and having all of his words go into one ear and out of the other. After a few years I realized why he was telling us the importance of setting this up, so I went and talked to him. Since then a lot of knowledge has been gained and it is as easy as 1, 2, 3.

The following steps should be completed after you have set a monthly budget for your current expenses.

1. As a member of the military, the first and most important investment account you should focus on is your TSP. With the blended retirement system you should aim to invest 5% of your base pay into this account each month. This will maximize the “employer” match and you will actually be investing 10% of your base pay. (Note: in order to have the full match you must have at least 25 months of active service time)

2. Personal IRA: a personal IRA should be your second focus after you are investing your 5% into TSP. With an IRA you can choose between Traditional and Roth. Traditional will be taxed when it is withdrawn while Roth will not, keep that in mind when making your decision. In this account you are allowed to invest a maximum $7,000 each year and there are no minimums. This equates to about $584 per month if you are looking to add it into your budget.

3. Now that you have the two big investments done, you can have even more fun! If you want to keep investing in stocks, open a personal investing portfolio and throw as much as you want into it. If you want to set some money aside for real-estate, do it! If you want to start a business that you have been thinking about, what’s stopping you?

Always keep in mind that there are risks with investing and there are no guarantees that you will make money in the stock market or any investing ventures.