Let’s see if you find this familiar.
You are not really sure where you should put your money.
You are not happy with the earnings your savings are producing.
You think that right now is the time to start investing.
And yet… you don’t.
It seems like a good idea when you think about it, but there’s something that is keeping you from finally pulling the trigger.
If this is you, don’t worry - you are not alone.
Taking that first step on your way to your financial goals can be scary at first. So let’s take a look at some fears that can stand in your way, and how you can overcome them.
The fear of losing money
Let’s start with the big one.
The thought of losing money is one most of us would like to avoid at all cost.
After all, we work hard for our money, and managing it so our needs and wants are well accounted for is hard enough without facing the prospect of losing it. Which can, in effect, act against us.
It’s been verified time and time again that people will work harder to avoid losing something than to gain something of equal value. It’s called loss aversion, and it’s deeply ingrained in us.
First thing, remember that you probably have more money than you think.
And second, you have to consider the cost of not investing. That cost’s name is inflation.
As time goes by, prices in general tend to go up. If your money stays at the same level and doesn’t generate a return, bit by bit your purchasing power is being chipped away.
So use this in your favor: are you afraid of losing money? If you don’t invest, chances are that you are losing it already.
The fear of making a mistake
No one likes making mistakes.
It can be associated with failure, and that you really weren’t prepared for this.
In fact, it’s a form of perfectionism. But as with everything in life, nobody is perfect, and waiting to be perfect before you start is a common excuse not to start at all.
So what do you do?
Start small, learn, adapt and build up from there. Because small steps make for small mistakes, but any action has the potential to make drastic changes over time if you look at the big picture.
Not only that, but as you move forward, you also learn how you can better deal with mistakes.
The fear of not knowing enough
It’s closely related to the one above, but with a few specifics.
The same way we don’t want to make a mistake, we also don’t want to feel that we overlooked something.
But we also need to face the fact that more information is being produced than ever.
We mostly fear what we don’t know - and here lies an interesting paradox.
We mostly fear what we don’t know. Think back to a situation where you were waiting for some kind of decision, such as the outcome of a job interview. At some point, not knowing can actually be worse than a possible rejection.
While knowledge can be a good way to dissipate fear, what we don’t know will always surpass what we do know.
Which is why you can keep learning - just don’t let it stop you.
If you waited to know everything about a subject before doing anything, you wouldn’t do much of anything. So arm yourself with the basics and get going.
Fear is a terrible advisor
So instead of worrying about a possible negative outcome, plan on what you’ll do if that ever happens.
Maybe it’s even not so bad as you’ve made it in your mind. And just think about what could be at your reach once you start.
Help others fight their fears, share this article with them and you may find someone that needs to read it!