When Investing Seems A Bit Too Scary, What Can You Do?

According to a recent study from Wealthify, around two thirds of participants cited ‘the thought of it makes them nervous’ as being a major cause against putting their money into investments. 

With that one stat alone, it’s clear to see that a lot of people find even the idea of trying out investing to be a bit too scary and uncertain! 

But that doesn’t prevent investing from being one of the best ways to let your money work a bit harder for you. 

And if you want to try your luck on the stock market, or you’re keen to find out what the buzz around cryptocurrency is all about, the fear of risk is the one thing holding you back.

So, what can you do to quell this fear, become more educated, and actually start reaping some rewards from the world of investing? Whether your budget is big or small, here’s a quick guide for you. 

Know Your Goals

A lot of people decide they want to invest some money, do so, and then get nervous and withdraw all at once. 

The reason why? There was no goal to guide their actions. They didn’t have a plan, so they couldn’t do much else other than panic. 

Before you invest, especially when you’re scared of it, figure out what you’re saving and/or investing for first. 

Stay Up to Date

This is a good way to stay informed about your chosen investment type. If you know what’s going on within the market, without actually having any stake in it, you get to know the ins and outs as they stand. 

Check out sites like FXCOINZ, if you’re drawn to crypto, or check out your local paper’s real estate insider articles. And the more you read up on the way this market tends to rise and fall, the better your grip of this investment. 

Then, when you feel comfortable with the insight you’ve gotten, and the small level of detail you know you’ve clearly got your head around, you can move on to step two. 

Take Baby Steps

They’re the best way to help both confront the fear of investing and account for any high-risk losses along the way. 

In the world of investing, baby steps means small amounts of money, say around £10 to £20. Find yourself a low-risk investment option, such as a stock fund that’s been arranged for you, and add this small amount to it, maybe once a week or twice a month. 

This way, you get to let the investment build up (and fall, as that can always happen too), but you don’t lose out on anything you’re not truly comfortable with losing. 

You’re not suddenly sinking £1000+ into the fund. You’re popping the equivalent cost of a Netflix subscription into a pot that has the chance of returning more money your way.  

When investing makes your head spin, start small, inform yourself, and make sure you have a goal to work toward.

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