Your job may give you and your family a certain kind of security that goes with a good, stable material situation. And it’s easy to settle for that kind of stability. I fell into the same stability trap, as many others did.
Luckily, in my case, the thing that snapped me out of the stupor of perceived stability wasn’t some horrible life-changing tragedy. No, it was a simple broken leg. While some would say that a broken leg is tragic enough, for me it was merely a chance to sit and do nothing for two or three months – or so I thought.
Is Investing Really Necessary?
What really happened is that I was bored out of my mind, itching to back to work, and thinking constantly about all the money I was losing. You see, I was on paid sick leave and my hospital bills were paid by my insurance – which, again, makes me luckier than many.
Still, I didn’t receive my full salary, so the personal finances suffered. My husband had a good job as well, but we were used to a few bits of comfort here and there – be it dinner in a fancy restaurant twice a week, or changing our cars a bit too often – and those bits depended heavily on both of us doing our share.
That is what got me thinking about investing.
The Thought of Losing Money Made Me Realize I That I Was Losing Money By Not Investing
We’d avoided investing up until that point. Both of us had complete financial independence from our families and each other, and the loan we got for our house was not too big of a burden.
We also felt that investigating is a bit of a shady business. We considered it nothing but guesswork, and a sort of gamble. To put it short, we feared that, instead of earning, we will be losing money that we could be spending.
However, with a taste of helplessness that came with the broken leg, I started thinking about the future. Sure, we had a bit of money saved for the rainy days, but it was far from a proper retirement plan. What happens if I get sick and become unable to work for years? We would get old at one point, and then what?
All of these questions led to one simple conclusion: we needed to start investing. So we did. If you are facing the same issues and asking yourself the same questions, here is how you can overcome that fear – or at the very least, here’s what worked for me.
Overcome Your Fear Of Investing With These 5 Easy-To-Implement Steps
1. Think about what happens if you don’t invest
This was the first step for me – developing a healthy fear of what happens if you don’t invest. I tried to justify the lack of action by telling myself that we do save – in a bank. However, while banks keep your money safe, they don’t do a thing to increase it. Interest rates are laughable, and the only way to raise your fortune is to invest.
You may feel that, if you save enough money that you earned in a conventional way – by doing your job – you won’t need to worry about earning money that way. However, be aware that money loses value over time. While you may find $2,000 a handsome sum today, there is no guarantee that it will be worth as much in 40 years. Therefore, thinking about increasing your fortune is just as important as saving.
2. “Before you invest, investigate”
This is one of the wise little sayings that originate from the pen of William Arthur Ward. It stands true for every kind of investment you may consider. Before you invest into any kind of business, ideas, or stocks, investigate the situation the business is in. Do more than that – learn as much as you can about investing, and different types of investing.
It will make you feel more comfortable with the idea of investing. The fear of the unknown is probably what makes investment scary – after I learned a bit about hows and whys of the stocks and the market, I felt much more self-assured.
3. Start Small
This is another extremely helpful idea – start small. I used to look for the ways to save money that I would otherwise spend, and then invest the amount I saved. That would give me a kind of a careless feeling – even if I lost the money, where’s the harm?
I would’ve spent it either way. This made investing much easier and safer. And when you look into it, there are so many ways to cheat in order to save money! Jetstar price beat is one of the best ways to do it if you fly a lot, and buying the store brand is another. If you pile up your savings over a period of 6 months, you should have a nice little sum to invest.
4. Be Realistic
Investing is not a tool for getting rich overnight, and you shouldn’t view it as such. It is a way of accumulating a fortune over the years and making you feel a bit safer when it comes to your retirement and unpredictable scenarios.
Therefore, you have to set up realistic goals and be patient. Who knows – in the end, you may just find yourself considering an early retirement – just because you can!
5. Set Up a Strategy
Even though in the beginning you can’t really think about this, after you’ve gone through a few investments, you should stop and consider the best strategy for the future. Talk to other people and see what works for them – but don’t copy them.
Every investor is a different story. Everyone has their own motivations, capital, and goals, so you need to consider all of those when deciding on a strategy. A good strategy will give you a feeling of purpose. Even if at the moment you feel lost, you know where you’re going, and you’ll feel much more certain that you’ll get there in the end.
Investing Isn’t Scary
Those are the tips that I can share because they’ve worked for me. Now I invest without fear, and while I still make mistakes from time to time, I feel much more confident, and my future seems much clearer than before. So, don’t waste time being afraid – take action, and watch how the risk pays off.
Lucas H. Parker is a business consultant, a marketer, and a freelance writer. Doing research, exploring and writing are his favorite things to do. Besides that, he loves playing his guitar, hiking and traveling. Lucas lives in Sydney, Australia.