Overcome Your Fear of Investing With These Simple Steps

Let’s admit it: Stuffing your money in a savings account or under your mattress is a lot less scarier than the thought of investing it. Except, doing that unfortunately won’t get you very far. If you’re trying to achieve any kind of financial stability in your life, investing is mandatory, though it is instinctively associated with risk. And to be quite honest, the fear that comes with taking risks of any kind is normal.

If you’re trying to play the game of wealth, you have to take clues from the wealthy. And how do they do it? First and foremost, they put their money to work for them by investing in assets that appreciate in value and will guarantee a future income for themselves and their families.

 

With all that said, we still have to deal with your fear and how you can start to overcome it. I’d love to tell you that I have some kind of magic cure-all for this, but I don’t. Instead, what I do have are some practical tips that can help you overcome your fear, as natural as it may be. So, what should you do?

If you're trying to play the game of wealth, you have to take clues from the wealthy. Click To Tweet

 

  • Educate Yourself. You don’t have to know how to read complicated financial reports and statements to become successful at investing. Even if you don’t yet have the money to begin, get started by researching the basics of different investment instruments and take some time to determine your risk profile. You should also work on familiarizing yourself with frequently used financial jargons and some of the various investment strategies. In addition to your own reading and research, seek professional help when and where needed. Doing these will help you to learn as much as you can and better prepare you to start investing when you feel you are ready. However, please ensure that you DO eventually get started.

 

  • Start Small. Whether or not you have a large sum of money to start investing with, start only with a small amount and learn the dollar cost averaging technique. Starting with small amounts allow you to gain knowledge through practice without putting all of your money at risk. This strategy will also help to eliminate your investment paralysis and any anxiety you may feel about taking on the risk of investing. The more practice and first-hand experience you get, the more you will feel comfortable to incrementally increase your investment amounts, and the more you’ll realize that there’s not much to be afraid of.

The fear of loss is psychologically greater than the desire for gain. - Zig Ziglar Click To Tweet

 

  • Don’t Panic. Think long term and stay the course. Each and every investment instrument carries an element of risk regardless of how safe or moderate they are said to be. This means that whatever you invest in may lose value from time to time. The key is to ensure that you don’t panic in the event that that does happen and simply stay the course. If you’re investing for the long term (which you should be), it will be counter-productive of you to worry about inevitable fluctuations in the market now when your portfolio will have ample time to not only rebound, but also thrive. Stick with your strategy and stay the course.

 

  • Begin Right Now. The best time to start is not now, but right now. Don’t allow yourself to get caught up in endless research and over-analyzing instead of taking action. No matter how much you learn, the information will be worthless until you start applying the knowledge. Furthermore, time+money invested will be exponentially more valuable than just having money alone invested. What this means, basically, is that $10,000 invested over 10 years will be worth more than $50,000 invested for 3 years (see for yourself). Remember that time passes whether or not you take action, so please go ahead and get started. Here’s another thought: Don't worry about making mistakes - they are the currency of progress. Click To Tweet

 

Fear is natural and the only way you will be able to beat it is by taking consistent, deliberate action. Speak with an investment advisor who will help to guide you further and offer whatever support you need to get started. Whatever you do, don’t allow fear to keep you from creating the financial security you desire. Read this next post for further guidance on where to begin.

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