【Beginner’s Journal】My Second Month of Investing – Why I Chose the S&P 500 and What I Learned

When I first started investing two months ago, I had no idea what I was doing. The idea of putting my money into the stock market felt intimidating. I didn’t understand how index funds worked, and I thought investing was only for wealthy or experienced people.

But I decided to take the first step. I chose a simple, low-cost index fund—the S&P 500. I didn’t try to pick winning stocks or time the market. I just started small, and I stayed consistent.

In this post, I’ll share why I chose the S&P 500, how I began as a complete beginner, and what I’ve learned after two months of real-world experience.

If you’re just starting out—or thinking about it—I hope this story gives you the courage to begin.

1-1. What I Knew (Nothing)

When I first considered investing, I had absolutely no idea where to begin. The world of finance seemed complicated, risky, and reserved for people with business degrees or tons of money. I didn’t know the difference between a stock and a bond, and acronyms like ETF, ROI, or S&P 500 sounded like code from another planet. The more I read online, the more overwhelmed I became. It felt like there was a secret language I wasn’t part of, and honestly, that made me hesitate for a long time.

But I started to notice something. Every person who talked about their success with money had one thing in common—they started. Even those who made mistakes or failed early kept learning and trying. That got me thinking: maybe I didn’t need to know everything. Maybe I just needed to take a step and learn from there.

1-2. My Decision to Start

I realized that waiting until I felt “ready” was just another way of delaying progress. I had read enough to understand one basic principle: start small, and stay consistent. So I opened a brokerage account and committed to investing a fixed amount every month. I didn’t need to choose the perfect time or the perfect fund. What I needed was momentum.

I chose an S&P 500 index fund because it was widely recommended for beginners, and it offered exposure to 500 of the largest U.S. companies. It felt safe, diversified, and easy to understand. More importantly, it removed the pressure of picking individual stocks, which I still didn’t feel confident about.

The truth is, you don’t have to know everything to get started. You just have to be willing to learn as you go. That shift in mindset—from needing certainty to embracing progress—is what finally got me moving.

2-1. Simplicity and Peace of Mind

One of the biggest reasons I chose the S&P 500 as my first investment was because of its simplicity. As a beginner, I felt overwhelmed by all the choices in the market—individual stocks, mutual funds, REITs, cryptocurrencies, and more. Each option had its pros and cons, but most required time, research, and risk tolerance I didn’t yet have.

That’s when I came across the S&P 500 index. It’s not a secret weapon or an insider’s trick—it’s just a well-known, proven basket of 500 of the largest and most influential U.S. companies. The logic is simple: if the U.S. economy grows, these companies grow, and so does your investment.

I didn’t have to pick the next Amazon or time the perfect entry point. I could simply ride the market’s overall wave and benefit from decades of collective growth. That gave me peace of mind and clarity, two things I desperately needed at the beginning.

2-2. Global Exposure with Low Fees

Another major advantage of the S&P 500 is that it provides both stability and diversity. Within one fund, I gain exposure to companies across multiple industries—tech, healthcare, energy, finance, and more. This helps minimize risk, as no single company or sector has too much weight.

Even though it focuses on U.S. companies, many of those companies operate globally. So in a way, I was indirectly investing in the global economy. At the same time, I benefited from low expense ratios, which meant more of my money stayed invested rather than eaten by fees.

2-3. Trust in the Long-Term Strategy

I wanted an investment that wouldn’t require daily monitoring or constant decision-making. With the S&P 500, I found a long-term vehicle I could trust. It’s backed by historical performance, widely diversified, and supported by investing legends like Warren Buffett.

It gave me a feeling of control without complexity. And for someone just starting out, that’s priceless. I wasn’t looking to get rich quickly—I was looking to grow steadily. The S&P 500 allowed me to build wealth quietly, in the background, while I focused on learning and developing better financial habits.

3-1. Choosing the Right Platform

Once I decided to invest, the first hurdle was choosing a platform. As a resident of Japan, I had several domestic brokers to choose from, but I needed one that supported regular monthly investments and offered low-fee index funds. I compared their user interfaces, customer support, and available fund options before settling on a well-reviewed online platform.

The interface was intuitive, and they had an English guide for new investors. That was a big win for me. I felt more confident navigating the dashboard and understanding my account settings. It might sound minor, but when you’re just starting out, every bit of clarity helps.

3-2. Picking the Fund and Starting Small

I chose a low-cost S&P 500 index fund with an expense ratio of under 0.1%. I didn’t want to risk picking individual stocks or chasing trends. The goal was to keep things simple and start building the habit. I started with ¥50,000 per month, which was a manageable amount for me.

This wasn’t money I needed for daily expenses, but it wasn’t excess either. It required some sacrifice, like fewer restaurant meals or shopping sprees. But I knew it was worth it. Each investment felt like a small victory toward financial stability.

3-3. Automating the Process

To make investing a habit, I set up automatic transfers. Every month, ¥50,000 would go directly into my S&P 500 fund without me having to think about it. This system removed the stress of decision-making. I didn’t wonder when to invest—I just did it.

Automation removed my emotions from the process. I wasn’t tempted to pause when the market dipped or get overconfident when it rose. I just stayed the course.

Looking back, that automation was the single most powerful decision I made. It kept me consistent, accountable, and mentally free. I could focus on learning and watching my balance grow, rather than obsessing over every market move.

4-1. Market Timing Doesn’t Work

In my first two months of investing, I quickly learned that trying to time the market is both stressful and ineffective. There were days when the market dropped and I felt anxious, wondering if I should wait or sell. But I reminded myself that I wasn’t trying to beat the market—I was trying to build consistency. The more I focused on timing, the more it distracted me from my long-term goals.

I now understand that time in the market beats timing the market. Even small gains, compounded over time, are powerful. What matters most is showing up—month after month—regardless of market swings.

This shift in perspective allowed me to relax. I stopped obsessing over charts and news headlines. I started to see investing not as a daily decision, but as a long-term behavior.

4-2. Emotional Control Is Everything

Investing is more emotional than I expected. I didn’t think I would feel so reactive to small dips or jumps in my portfolio. But the truth is, money triggers feelings—fear, greed, doubt, excitement. These emotions can lead to impulsive actions that sabotage long-term results.

Through experience, I learned to pause. When I felt the urge to change my plan, I asked myself: “Has my goal changed? Or is this just temporary noise?” Most of the time, the answer was obvious. So I stayed the course.

4-3. Progress Is Measured in Habits

I used to think progress meant seeing big returns or having a large portfolio. But now I realize that the real progress is in building habits—automating contributions, checking my balance only once a month, and reading one article per week. These small actions are shaping my future more than any short-term return.

Success in investing comes from consistency, not complexity. I may not know everything about the markets, but I know how to show up—and that counts for a lot.

5-1. Start Where You Are

Many people think they need a lot of money or a finance degree to begin investing. I thought the same. But I’ve come to realize that the most important step is just starting—right where you are, with what you have. It doesn’t have to be perfect. It doesn’t have to be impressive. It just needs to be real and consistent.

I began with a small monthly amount that I could afford without stress. That small act of investing every month helped me feel empowered. It wasn’t about the amount—it was about building the habit.

5-2. Action Over Perfection

Waiting for the perfect moment to invest is a trap. I waited for weeks, even months, thinking I needed to understand every detail before committing. But the truth is, clarity comes from action. Once I started, the pieces began to fall into place. I learned more by doing than by reading.

Taking imperfect action is better than doing nothing. I made small mistakes early on, but I learned from them quickly. And more importantly, I gained confidence. That confidence helped me stay invested, even when things felt uncertain.

5-3. Your Future Self Will Thank You

Investing isn’t just about money—it’s about creating a future you can feel good about. Every contribution you make today is a gift to your future self. It may not feel like much now, but it builds momentum. One year from now, you’ll look back and be proud that you started.

You don’t have to be fearless—you just have to be brave enough to begin. That’s what I did. And I believe you can do it too.

Looking back on these past two months, I’m amazed by how much has changed—not just in my portfolio, but in my mindset. Two months ago, I knew nothing. Today, I have a growing habit, a working system, and more confidence in my financial future.

The S&P 500 wasn’t just a safe investment—it was a gateway to a new way of thinking. I realized that I didn’t need to be perfect, just consistent. That shift alone was worth more than any short-term return.

Starting is the hardest part—but also the most important. If you’re still waiting, worrying, or doubting, let this be your sign. You don’t need to have it all figured out. You just need to take one step. Then another.

Two months from now, you’ll be glad you started today. Your future self is counting on it.