Here’s How To Not Be Afraid To Invest: Complete Guide

3 min read

Investing is intimidating, isn’t it? Hearing the word invest, I used to immediately imagine a room full of suits and ties, talking about “stock market this” and “portfolio that”! It’s no wonder that so many people are inevitably afraid to invest. I’m here to tell you that you’re not alone, and you shouldn’t be afraid!

So many people (if not all) understand the importance of investing in your future and retirement, but the majority of people are too afraid and intimidated by the idea.

The fear comes from very rational places and makes complete sense, but there is a reason why every blogger, book, and wealthy person out there advocates for investing! Today, let’s put your concerns to rest, so you’re not so afraid to Invest.

1. Setting Clear Goals

Here’s the straight honest truth. Are you ready? “Investing is not a get rich quick scheme!” Read that again!

I know, you’ve seen so many people on the internet, on youtube, and maybe on social media, showing the world how they made millions in a few months by investing. Let’s get that out of your head, ASAP!

Investing is a long-term strategy, so you should think long-term. Thing is, investing in the market, for example, means that the value of the Stock Market fluctuates up and down! When times get rocky, you don’t want to sell your investments, and then make a loss. Besides, since nobody knows when the market will rise, you will lose out on the gains when it does!

So, to keep your calm, always just invest for the long term. Invest your money, keep it there, and don’t touch it for years and years to come. Remember, think long-term!

2. Getting money to invest

A good number of people don’t invest because they don’t believe they have the money to invest. I’m here to tell you that you do!

The thing with investing is that it does not require hundreds of thousands of dollars to get started. As a matter of fact, you could actually get started with just $1. Nope, that wasn’t a joke either!

There are multiple investing apps out there that allow you to get started with investing with very little money. Services like Betterment offer very low-cost investing and are an easy way to get started. These apps called Robo-Investing apps invest your money for you, requiring very little experience in investing. If you’re a little more experienced, then Robinhood would be an excellent app to get started with!

Another very easy place to get started with investing is with your 401k or any other retirement plan. With these investment plans, there is usually very little money required to contribute.

Sure enough, investing back in the day required a lot of money to get started. In this day and age, and with the advent of investing apps and the internet, it really doesn’t need that much money.

3. Preparing for market downturns

The stock market experiences cycles of profits and losses. These Cycles are very common and are a natural part of the stock market. Here’s the thing though. It’s always important to be prepared for them.

First thing’s first. By following step one, you should remember to always invest in the future. This means that, whenever there is a market downturn, you should persistently continue saving. This is especially true when you’re just starting out. What the market does should not matter at all, and instead, keep investing to reach your financial goals.

Secondly, by investing in index funds, you will 100% always come out ahead in the long term. Statistics show that those that invest in the short-term and try to time the market, usually lose the most amount of money. So when you start investing make this promise to yourself. “I will always invest, no matter what”. This way, you will come out ahead.

4. Diversify your investments

If you don’t know what diversify means, that’s okay. It’s really not as scary and complicated as it sounds.

It simply means that when you invest, you spread your money across different types of Investments. These types of Investments may include investing in the stock market, investing in bonds, or even real estate.

This has been a proven way to safeguard your Investments whenever there are market downturns. Basically, any of your poorly performing Investments don’t affect your entire portfolio in the long term. This will make sure that you have a balanced investment strategy.

Don’t be afraid to invest

When I started my own financial journey, I remember a time when I was deathly afraid to invest any of my money.

I remember thinking to myself “what if I lose money” or ” I have no idea what I’m doing.” But the thing is, the biggest Financial mistake you could ever make in your life is not getting started.

Think of investing as saving. Saving money is one of, if not the most important financial habit to form. All it takes is the first dollar to get the ball rolling.

So, I promise you it’s not as bad as you might think. On the contrary, It’s much much easier than that. So what are you waiting for? Don’t be afraid to invest. Instead, let’s get this ball rolling! 🙂

Good luck!

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