Starting an investment can be hard. You may get trapped in fear of high stake and overwhelmed by the knowledge to invest. Luckily there are ways to break the fear cycle of investing.
Indeed, in the past, investing was mostly for wealthy people. Yet, currently, firms are working to make investing not only more affordable but more accessible. Therefore, now you can start to invest. Cited from CNBC Invest In You, These 3 ways to break the fear cycle in investing that you need to consider.
1. Set a Goal
First of all, you need to be clear about what you want. For instance, if you want to understand the stock market, then read. Besides, you can also pair up with friends with similar interests. Other than that, you can also read an article every day.
Also read: Investment Barriers Faced by Emerging Countries
If you want to save for a specific event, then write down exactly what you want. Besides, you need to also write the specific time you need to achieve it. On top of them, you need to also have plans to create accountability and solidifies your commitment to a project.
2. Brush Up Your Skills
Expert mentions that lack of exposure usually make people afraid of learning about investing. Many also think that financial education should start in our school system. However, we don’t have it in our school.
Therefore, you have to start learning basic terms by yourself. For instance, stocks, bonds, risks, and returns. Knowing these terms may make you feel having a firm foot.
Also read: Gold Investment is More Profitable Than Other Investment
3. Analyze Your Bad Habits
Knowing your bad habits will help you find ways to break them. For example, if you feel like you never have enough money left to save, then you need to analyze your spending and saving.
Besides, you need to pay yourself first and then work out how to spend what is left. Some people hate the idea of writing down every single purchase. Luckily there are no real hard and fast rules for personal money management.
