One of the best ways to improve your chances at financial freedom down the road is to invest. However, many people have a hard time getting started. If something is holding you back from investing, it’s a good time to examine the situation, and see if you can get through your roadblocks so that you have a healthier financial future.
Not Enough Money
The biggest excuse I often hear about investing is that you don’t have enough money. It’s a common myth that you need to have a lot of money to invest.
In reality, you can get started with as little as a few bucks. Many online brokerages don’t have minimum account requirements. You can start with a small amount of money, and commit to invest a small amount over time. A small, regular investment is better than making no investment at all.
There are even programs and apps that allow you to invest your pocket change. Start simply, with an index fund or index ETF, and you can take advantage of dollar cost averaging to build your portfolio. You don’t need a lot of money to start investing, so don’t let that hold you back.
Not Enough Knowledge
We tend to think of investing as complicated. And it can be. However, it doesn’t have to be. If you are getting into advanced day trading strategies, or using products like options, things can get a little bit complex. Some investing ideas require a lot of specialized knowledge to do well.
The good news is that most of us don’t need deep knowledge to be successful in the long term. Most of us can do just fine with a basic knowledge of how stock markets work, and how to use index funds or index ETFs to get started.
Some of the simpler products don’t require a lot of knowledge. Understanding the stock market, when you look at it in terms of a whole, isn’t that complicated. If you take a few minutes to learn about indexing, you can understand investing enough to make a good long-term decision and get started.
Over time, as you are more confident and as you have the time to learn more, you can branch out with your strategy. For most people starting out, though, an all-market index fund is easy enough to grasp, and you can get started quite quickly.
Worried About Doom and Gloom
Are prognostications of doom and gloom holding you back from investing? Don’t let them rule your life or your financial future. For the most part, investing holds up over the long haul. A trend line might look scary in the short-term, but stepping back and watching market performance over time changes the picture. A broad approach can help you overcome worries about a drop, since you will understand that most markets recover and thrive over time.
Take a look at what’s holding you back from investing, and then see if you can gain the information you need to overcome your fears and move forward. Your future self will be happier and wealthier.