3 strategies to overcome your fear of investing
Taking control of your finances is sort of like going to the gym or working out. Your alarm clock goes off you know you should get up and go, but you think of all the excuses as to why you can’t make it. It’s cold, it’s raining, it’s snowing, or I’m too tired. All these excuses stop you from making progress and achieving your fitness goals. This is very similar to investing because excuses start to fill your head that will discourage you from taking control of your finances. Excuses like I need a lot of money to get started, I’m still young I can worry about my finances later etc.
I get it this year you told yourself that you would start investing, yet here you are still without an investment account. You’re not sure where to start. You’re afraid that you’re going to lose all your money. These are normal thoughts to have, but you can’t let these thoughts stop you from building wealth.
Don’t let fear stop you from being great.
In chapter 4 of my book I talk about not letting fear stop you from being great. I know it can be scary putting your money in a place where you could risk losing it. I will admit I was a little afraid about investing, which is probably why I put if off for all these years. I always heard about how great it was in all the books I had read, but I still had no idea how to do it. How do I open up an investing account? Do I need a ton of money to get started? Will I lose all my money? How do I know what to invest in? All these thoughts kept me stuck for many years, until I finally had to push those thoughts aside and focus on the bigger picture-building wealth for the long run. Building wealth for my family.
I realized that every day I’m already losing money through inflation and buying crap that won’t give me any returns on my money. (Everyone likes to call it purchasing power, but if you keep purchasing and aren’t saving or investing you will have no power.) If I planned to leave my money in the market for many years and I did lose money than the market would have time to go back up. This eased my fears. On top of the dividends, I would receive each quarter.
Repeat after me “I will not let fear keep me in the same place as last year. I may be afraid, but I’m still going to move forward.” You are afraid because investing is something new to you, but once you get the ball rolling and take action you will overcome that fear. When you’re trying something new it’s natural to feel a little nervous. You can’t wait for the fear and nervousness to go away. You have to force yourself to be uncomfortable.
“Action cures fear” ― David J. Schwartz
Create an investing plan
Telling yourself you will start investing may sound good, but if you haven’t taken the proper steps to get you moving I want you to create a plan for yourself. What products do you use every day? What products do you really believe in and trust that have been around for years. Create a list and start researching the companies that own these products. What is the price of the stock? Does it pay dividends? What is the companies financial history look like? You don’t have to research 20 companies at a time start with 1-2 companies at a time so that you don’t overwhelm yourself.
It’s okay to be afraid. You can use fear to your advantage by recognizing that it is fear that you’re feeling and pushing past the fear and doing the exact thing that you’re afraid to do.
If you’ve always wanted to learn how to start investing and building wealth for the long run, this book is available for you here.
With all my love,