Great investors aren’t born, they are made. The people who have been the most successful investors and achieved the greatest wealth usually didn’t start out that way.
But what separates them from the rest? They have arrived at a certain comfort level in their investing.
People who aren’t comfortable investing either don’t know a lot about it, or haven’t done enough of it, or both. If you are one of them, there are 4 ways to get comfortable with investing that can help.
1. Educate Yourself
One of the first things you can do to get comfortable about investing is to educate yourself. Pull out your computer and do some research.
Look for articles that talk about investing and learn the terms and what they mean. You can also choose other sources such as books or magazines.
Another way to educate yourself is to talk to someone you know who invests. Ask a friend, colleague, or family member whom you know is a successful investor.
Compare different types of investment options to help you get comfortable and decide what is best for you. Take notes and keep in mind you don’t have to become an expert to get comfortable and get started.
2. Start Small
Starting small is an additional way to get comfortable about investing. There are a couple of ways you could go about it.
First, you could invest through a 401K at your job, if they offer one. Part of your paycheck, before taxes, can be deposited into an investment account. Your employer may choose to match a portion of what you invest which can help your investment grow faster.
You can get more comfortable about investing as you choose the different funds to invest in and examine their risk levels. In addition, it will help you learn as you track how your investments are doing.
A second way you can get comfortable is to start investing on a smaller scale through the assistance of a robo-advisor. A robo-advisor does some of the work for you and is designed to make investing easier.
Many robo-adivisors have deposit amounts that are lower in addition to charging low fees. This can increase your comfort level in investing through them.
No Doubt you have heard the quote, “Don’t put all of your eggs in one basket.” It can be applied to investing and can up your comfort level with investing to follow this rule.
In other words, if you invest in more than one way you have a greater chance of success and a higher level of comfort. Put some money into higher risk investments, some in medium, and some in lower risk investments.
4. Get Assistance
While you will learn and eventually get comfortable investing on your own, you could ask an investment advisor for help. They are usually educated in the field and work with investing on a daily basis.
Investment advisors know all of the ins and outs and can guide you as you invest. You may have to pay a fee for their services, but it could be a small price to pay for a higher comfort level with your money.
Becoming a great investor doesn’t happen by accident. It takes time and a certain comfort level. Use the 4 ways to get comfortable about investing to help you become good at investing and reach your investment goals.
What ways to get comfortable with investing have you used successfully in the past?