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Common investing fears (and how to overcome them)

The most challenging part of an investment journey is getting started. Many people begin with fears associated with losing money, making a mistake or not knowing enough about the stock market. Although the stakes are high, investing can help prepare you for the long term. Making a large investment is bound to come with fears, but the first step to overcoming them is to get started.

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The most challenging part of an investment journey is getting started. Many people begin with investing fears associated with losing money, making a mistake or not knowing enough about the stock market. Although the stakes are high, investing can help prepare you for the long term.

In the season of Halloween and Dia De Los Muertos, it is important to conquer your investing fears to reap the benefits of investing your wealth.

Fear #1: Not having enough money to invest 

When you begin investing your money, you may be overwhelmed by the options available and feel like you don’t have enough saved to get started. Many people associate it with the wealthy, but in recent years, it has become more affordable and accessible to the middle class.

The solution to feeling like you don’t have enough money is to start small and only invest a small portion of your saved funds. This strategy will allow you to learn through experience with lower risk tolerance. As you get more comfortable with investing and have more saved, you can look into making a more substantial investment.

This picture show coins falling onto a table.
Although the stakes are high, investing can help prepare you for the long term. (Source)

Fear #2: Losing money 

The most common fear of investment is losing money. While losing money can be scary, not reaching your long-term financial goals can be even more of a problem. It can be even more intimidating for young people because they are uncertain of their financial futures and don’t have a safety net if they lose money.

Inexperienced professionals fall to the same fate as they are unwilling to spend money if there is a risk of losing it. The stock market is constantly fluctuating, which means it is difficult to judge the performance of your investments.

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If you fear the loss of your money, the solution is to choose a strategy and take the risk. This can be accomplished by setting goals, developing responsible financial habits and planning for the risk involved. Don’t be afraid to start off with small sums of money and work your way up to larger investments.

When you educate yourself and plan for investment success, in most cases, you’ll find that there was nothing to fear in the first place.

Fear #3: Trust 

Trust is a difficult obstacle to overcome when you’re investing because people will try to scam you or give you inaccurate information. To overcome this challenge, you need to ensure you are seeking valuable, trustworthy information to make your investment decisions.

You should seek the advice of a professional like a financial planner whose job is to advocate for their clients rather than accept commissions. You should also research the wealth of knowledge available to learn the basics of investment, choose the right strategy and be able to spot the signs of when you may be getting scammed.

Fear #4: Making an investment mistake 

If you are new to investing, your biggest fear might be making a mistake that costs you a substantial amount of money. This fear is reasonable because the stock market is unreliable, with constant highs and lows.

The essential factor to keep in mind is that if you make a mistake, you can choose a new strategy. Eventually, you will begin to reap the benefits of investing your money.

While you might lose money when you first start out, if you keep saving, you will be able to make up for your lagging returns.

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This picture show a calculator on top of a paper sheet and a pen on one side.
The best way to calm your fears is to create a plan with a set timeline for your goals. (Source)

Fear #5: Stock market volatility

People are reluctant to begin their investing careers because they understand the stock market experiences extreme ups and downs.

The best way to calm your fears is to create a plan with a set timeline for your goals. You have decades to save up for your retirement, which means your portfolio should be able to withstand the unreliability of the stock market.

Future

Making a large investment is bound to come with fears of the unknown, but the first step to overcoming them is to get started. Once you do your research and make your move, you can set and forget it and let your money naturally grow over time.

(Featured image from Pexels)

DISCLAIMER: This article expresses my own ideas and opinions. Any information I have shared are from sources that I believe to be reliable and accurate. I did not receive any financial compensation for writing this post, nor do I own any shares in any company I’ve mentioned. I encourage any reader to do their own diligent research first before making any investment decisions.

Kayla Matthews is a technology blogger who regularly contributes to Inc.com, MakeUseOf and The Gadget Flow. Follow Kayla on Twitter or check out her technology blog, Productivity Bytes.

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