Money saver forums. Discuss budgeting, income, investment, and saving advice.


No announcement yet.

How To Overcome Fear of Investment

  • Filter
  • Time
  • Show
Clear All
new posts

  • IDEAS How To Overcome Fear of Investment

    I understand fear around investing. Here’s why it’s scary and how you can move from fear to confidence
    1. Maslow’s hierarchy of basic needs food and shelter
    --Realize the important and spend time on it

    2. As humans, our brain functioning goes back to the days of living in caves. We had to be afraid to survive. If we weren’t always in a state of worry or fear, we could run out of food or get eaten by an animal as soon as we left the cave. Now, we have to put that fear somewhere. It is still part of our brain functioning. We worry about many things, and money is at the top of the list.

    Even if people who have a lot of wealth worry they’ll run out or won’t be able to support the lifestyle they have adapted. I watched All the Money in the World recently, the movie about J. Paul Getty. According to the movie, he washed his own underwear so he wouldn’t have to pay for the laundry service. The way he lived and spent his money was centered around lowering his taxes through a charitable trust. In 1966 Guinness Book of Records claimed he was the world's richest private citizen. He was worth an estimated $1.2 billion, which is almost $10 billion today.

    --Notice when your fears are unfounded

    3. We don’t know about investing until we have done it. It’s like raising a child, especially that first one. Every investor has made big mistakes. I am listening to Ray Dalio’s new book now. He is a billionaire investor. He is the founder of investment firm Bridgewater Associates, one of the world's largest hedge funds. As I record this he is one of the world's 100 wealthiest people, according to Bloomberg. He made huge mistakes after he had been investing for several years.

    ---Learn from an unbiased and experienced source

    4. We make mistakes, then beat ourselves up relentlessly after we make investing mistakes.

    --Remember that everyone makes mistakes

    5. Most people invest without knowing even the minimum basics about it. It’s crazy. Information is power.
    --Learn the basics of investing

  • #2
    I think it is normal for a person to worry because he knows nothing. He feared of losing just like investment. We all want security. It is always better to know and understand the concept of investment before venturing. I don't know if it's acceptable but try to invest money that you can afford to lose. I mean big or small amount of money will always be at risk. Think before deciding.


    • #3
      Thanks for this post, one fear has been one of my greatest issue for investment. I always fear to invest the little money I work hard to earn from my professional job, all because i have never done or go into any business before and I don't want to risk and lose the money.

      Though I have come to understand that, every business worth the risk. Once one has done visibility study.


      • #4
        Learning how to invest and understanding what you’re investing in will give you the confidence that you need overtime to start putting your money. That is why it is becoming increasingly more important to learn how to handle your own money. Investing success comes with specific knowledge and skills. Because fear comes from not having the knowledge or skills to invest, it is important to focus on your circle of competence. Narrow down the world of things you can invest in and select one or two. Devote your time to becoming an expert on those one or two things. Remember, a knowledgeable investor makes the journey safely.


        • #5
          I read your post. You have provided useful insight into this topic. Your suggestion are really helpful for me to overcome my fear of investing in other ventures or stock market.
          Promotional Products Wholesale Supplier
          Information on Custom Printed and Personalized Products


          • #6
            Yes, most of the people invest their money without having proper information about the investment procedure. And they get into fear after investing their money. But one should gather information about the basics of investment.


            • #7
              Fear is a normal thing in everything especially in investing, its so hard to earn even a cent that we can't affoerd to lose but we must not let this stop us. Instead, we should use this fear to guide us.

              I'm afraid of losing money but I'm also scared of wasting the opportunity to make more money. Because I'm scared of losing money but still want to invest, I make sure to choose investments that have moderate risk. I also put 25% on high risks because I still want to try.


              • #8
                Thanks for this post ! It was quite informative. Basically i believe that one of the most important ways to get out of the area of fear when it comes to investments is studying very well before stepping in. Take your time and learn from different sources and never rush into investements that look all sparkly without studying. Next there is what i like to call the just do it- go for it step which is the second most important thing in order to get over you fears, then last but not least, one must always have the courage to accept the mistakes and embrace failure by approaching it as a stepping stone toward success.


                Related Topics